Workplaces have a duty of care to provide a safe working environment for every employee, but what do employees do after experiencing a psychological injury at work? There’s a more straightforward process after a physical injury, whether you claim workers’ compensation or make a claim through your Total Permanent Disability Insurance. What kind of options do you have for a psychological injury?
You can make a compensation claim if you sustain a psychological injury at work. However, the process is complicated and ministers have been working toward simplifying the process to ensure workers are correctly covered, whatever the injury. Your options are workers’ compensation or Total Permanent Disability (TPD) Insurance.
Ministerial Discussions
In a speech by the Treasurer, Hon Dr Jim Chalmers MP, he touched on the increase in psychological claims and the system’s inability to correctly handle them expeditiously. With a growing awareness around mental health, the system has been slow to treat and prevent psychological workplace injuries and that has hidden how many cases there truly are. While other workplace injuries have increased by 16% in the last six years, psychological claims have doubled. Almost 90% of physically injured workers return to the workplace within the first 13 weeks versus the 40% of psychological injuries that are still off work a year later. This length of time out of work isn’t just an economic issue, it’s a social one because the longer the claimant is out of work, the more socially isolated they are likely to be.
While psychological injury claims are only 12% of the total claims, they account for almost 40% of the cost. According to the Treasurer, the average cost of these clams has almost doubled in the last six years. That comes down to the speed at which workers’ health is restored. As the number of claims increases and the duration of the claims increases, premiums are also rising steeply with businesses facing premium increases of 8% for three consecutive years.
The issue is a systemic one because the system was designed around physical labour at a time when the majority of jobs revolved around physical labour. That system treats a psychological risk in the same way it does a physical hazard, which is not an appropriate way to prevent issues from occurring in the right place.
New South Wales’ ministers are eager to address the compensation system as a whole but are just as keen to address workplace health and safety laws. By updating legislation, workers should be empowered to highlight psychological hazards as soon as they are spotted, rather than waiting for an injury. Additionally, federal law should be the model for bullying and harassment jurisdiction and any instances of this should be heard in this way rather than an immediate workers’ compensation claim.
Another major issue with the system as it stands is there isn’t a definition for a psychological injury and while the definition doesn’t need to be exclusive, there should be an inclusion definition for workers and employers.
States like Queensland and South Australia have been reforming their compensation rules and guidelines and New South Wales should follow suit. The Treasurer also suggested adopting similar anti-fraud measures as the Commonwealth.
Ultimately, the workers’ compensation scheme has to reflect the modern world we live in and right now, it’s outdated and businesses and employees are suffering as a result. So, for now, your only option is to claim through the workers’ compensation scheme or Total and Permanent Disability (TPD) claims.
How AJB Stevens Can Help
If you have suffered a psychological injury in the workplace, AJB Stevens can help you navigate the complex workers’ compensation process. The psychological condition must be the direct result of your workplace’s conditions or specific to your employment. Psychological injuries are more difficult to prove and though you can present detailed medical evidence of your diagnosis, it’s more difficult to trace the source of your psychological injury. You must prove that your injury is the result of a relevant work event and the primary reason for the injury.
There may also be an option to pursue a common law claim or a TPD insurance claim. It’s possible you can make more than one claim, but the best approach to seeking compensation as the result of your injury is to contact an experienced and reputable lawyer in the local area. An experienced lawyer can help you navigate eligibility rules and advise you on your best options. Common law claims have a high threshold, requiring solid proof that your psychological injury is the result of employer negligence. In addition to your diagnosis, you will need evidence that supports the link between your psychological injury and the workplace.
Was it reasonable management action or are you the victim of a psychological injury at work? If you suffered a psychological injury and you believe your workplace is the root cause, get in touch with AJB Stevens to schedule your free consultation. We’ll show you the best path to pursue a claim based on the details of your individual circumstances.
