Workers Compensation - Understanding State of Connection

Workers Compensation - Understanding State of Connection

08 June 2020

The “state of connection” legislation can be confusing to interpret, and applies to each worker individually, not to the company as a whole. This is important to know as different workers' compensation legislation applies in different states.

A worker’s “state of connection” is determined by:

  • The state the worker usually works in for that employment;
  • If no state is identified in a), the state in which the worker is usually based for the purposes of that employment;
  • If no state is identified in a) or b), the state in which the employer’s principal place of business is located.

So if you are a Western Australian company and your employees based in NSW, NT, QLD usually work for you in Western Australia (for example FIFO workers), then WA is the “state of connection” and your business only requires Western Australian Workers' Compensation. No other state cover is needed. If you're a Western Australian company and you have employees in NSW and QLD but work offshore (for example FIFO to PNG), then test a) will fail (i.e. there is no usual state), so we will need to go with test b) where they live for the purposes of the work. In this case, the Western Australian company will require Workers' Compensation cover for NSW and QLD.

As you can see, obtaining the correct Workers' Compensation can be confusing however our team are specialists and are here to help. Speak with our team today.

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