David Sagar - State View VIC
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14-Sep-2014 -
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Recruiting & HR
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Transcript of David Sagar - State View VIC
RTW State View - Victoria
Agenda
1. VIC RTW performance
2. Why RTW
3. Employer and workers obligations
4. What next
Background – Scheme RTW performance
Background – Scheme RTW performance
Victorian RTW performance – it depends on what gets measured
Safework Australia - Returned to Work Rate 2012/13 by country and Australian jurisdiction) (%)
Background – Scheme RTW performance
Victorian RTW performance – it depends on what gets measured
Safework Australia - Current Return to Work Rate 2012/13 by country and Australian jurisdiction (%)
Background – Scheme RTW performance
Victorian RTW performance – it depends on what gets measured
• RTW Index – VWA corporate KPI
• What is it?
– A measure of whether a worker is at work or not 182 days post agent received date
– Current performance 21.4% (workers not at work) up/down from 21.9% or 0.5% improvement
– 2017 Target is for a 10 – 15% improvement in number of people not at work
Background – Scheme RTW performance
• Rehabilitation provider performance – SE significantly improved
OES RTW scorecard
40.00%
42.00%
44.00%
46.00%
48.00%
50.00%
52.00%
54.00%
Apr-
11
May-1
1
Jun-1
1
Jul-11
Aug-1
1
Sep-1
1
Oct-
11
Nov-1
1
Dec-1
1
Jan-1
2
Feb-1
2
Mar-
12
Apr-
12
May-1
2
Jun-1
2
Jul-12
Aug-1
2
Sep-1
2
Oct-
12
Nov-1
2
Dec-1
2
Jan-1
3
OES OES YTD target
Background – Scheme RTW performance
• Rehabilitation provider performance – NE RTW rates flat or deteriorating
NES RTW scorecard
17.00%
17.50%
18.00%
18.50%
19.00%
19.50%
20.00%
20.50%
21.00%
21.50%
Apr-
11
May-1
1
Jun-1
1
Jul-11
Aug-1
1
Sep-1
1
Oct-
11
Nov-1
1
Dec-1
1
Jan-1
2
Feb-1
2
Mar-
12
Apr-
12
May-1
2
Jun-1
2
Jul-12
Aug-1
2
Sep-1
2
Oct-
12
Nov-1
2
Dec-1
2
Jan-1
3
NES NES YTD target
Background – Scheme RTW performance
• RTW performance some other observations
• Stress incidence increased significantly but stabilised more recently
– 8 – 10% of all claims but 30% of longer tail
• RTW rates for stress improved
• RTW rates for SMEs continue to be lower
• Regional appears to be significantly harder – especially for NE
• Victoria now has the highest unemployment rate in mainland
Why RTW
• Health Benefits of work
Why RTW
• Health Benefits of work
Why RTW
• Premium impact
Why RTW
Premium impact
• Premium = costs (wages) x industry rate x remuneration
If large enough
• Premium = costs (wages) x industry rate x remuneration x experience
Costs = actuals + estimate (Statistical case estimate (SCE))
• SCE is impacted by wage and medical payments as well as legal, impairment, common law and IME payments – up and down
Why RTW
Premium impact - so the best thing you can do is get workers back to work
Why RTW - Obligations
RTW Inspectorate
• Worksafe now have a field force of RTW Inspectors
– Provide advice and information
– Assist meet obligations
– Enforce the law
• Targeted interventions – e.g. certified fit but no RTW
• Sanctions can apply up to
– 180 penalty units for an individual
– 900 penalty units for a business
Why RTW - Obligations
RTW Inspectorate
• Worksafe now have a field force of RTW Inspectors
– Provide advice and information
– Assist meet obligations
– Enforce the law
• Targeted interventions – e.g. certified fit but no RTW
• Sanctions can apply up to
– $27,000 for an individual
– $132,849 for a business
Obligations - Employer
The Hanks changes in 2010/11 saw better acknowledgement of the activities that lead to better RTW outcomes.
• Plan for your worker’s return to work
• Consult about a worker’s return to work
• Nominate and appoint a RTW Coordinator
• Make RTW information available
• Cooperate with labour hire employers
• Provide employment (52 week obligation)
• s194 – s 198A of the Accident Compensation Act
• 103 – 108 of the Workplace Injury Rehabilitation and Compensation Act 2013 (WIRC)
Obligations
Obligations - Worker
The Hanks changes in 2010/11 saw better acknowledgement of the activities that lead to better RTW outcomes.
• Participate in planning for return to work
• Use occupational rehabilitation services
• Participate in assessments
• Return to work
• Participate in an interview
• Notify of return to work
• s200 - 296 of the Accident Compensation Act
• 111 – 117 of the Workplace Injury Rehabilitation and Compensation Act 2013 (WIRC)
What next – for Victoria
• Focus on RTW index – watch for unintended consequences
• Sustained high unemployment - will make your long term claims harder to redeploy
• Continue closures downsizing, layoffs etc. – these people are hard to redeploy
• New models for Workplace rehabilitation
– ? Some help to get detached workers ready for RTW
• Possible change of Government?
Summary
• Know and use the legislation – meet your obligations
• RTW at all costs
• Utilise Occupational Rehabilitation for your hard cases
Questions and Discussion