Key changes to the Northern Territory Return to Work Act, and how they affect employers

The NT Government has made significant amendments to the Return to Work Act, making it a fairer and more affordable workers’ compensation scheme, with further changes on the horizon. The amendment makes changes to the responsibilities of employers and insurers when returning an injured worker to work, so it is important that everyone affected understands them. Here we’ve outlined the key changes and how they may affect your business.

Changes for employers

For employers, there are some critical changes to administering claims and returning an employee to the workforce. Most importantly, if your employee is incapacitated for longer than 28 days, you must create a valid return to work plan. You may also need to pay the medical bills of an employee if the claim is deferred by up to 56 days. Furthermore, an employee cannot be terminated for up to six months of incapacitation.

Changes for insurers

Your insurer also has increased obligations. They need to notify employees in advance of any reduction or loss of benefits, provide legal advice if a mediator recommends it and allow for the employee to be represented by a family member or union representative. They must also provide counselling to an employee or their family members and provide due notice of reasons for denying payments.

Other important changes

The NT Government has made some other changes that will also affect how your fund is administered. The Act now allows benefit payments to be provided in advance, which helps discourage fraud and streamlines the process.

What actions should employers take?

Any employer in the NT should talk to their insurer, or a professional such as Gallagher Bassett, to review how these changes specifically affect them. Employers should do a health check on their claims management process; if you are not compliant with the Act, the Work Health Authority can stop your business operations until you have adjusted your processes.

To stop this from happening, you should first think about your back to work plan: do you have one, is it up to date, and is it compliant with the Act? Second, have a look at the way your claims are handled internally to ensure they are in line with the legislation. Finally, speak with your insurer to make sure they have made the proper adjustments, and are also compliant with the amendments. No one wants their business affected by the mistakes of a third party.

If you’re unsure about your internal processes or want to make sure you are prepared for these changes, talk to your insurer or an expert such as Gallagher Bassett. Not only will you ensure compliance with the law, you’ll also benefit from a more streamlined and positive claims process.

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