WorkCover

WorkCover is a compulsory insurance imposed upon employers who engage employees, common law employees and substantially labour-only contractors. WorkCover Queensland is the statutory authority who manages the statutory insurance scheme under the Workers Compensation and Rehabilitation Act 2003.

The insurance provided is best described as two-part:

  • Insurance for injured workers for loss of income, medical costs and loss of capacity due to a work-related injury or illness under statutory entitlements
  • Insurance for employers against injured employees making common law claims against the employer.

This section of the website provides a basic summary of your obligations under the WorkCover scheme, and should be used as a guide only. For more detailed advice and assistance in determining who you need to cover, contact Master Builders or visit the WorkCover Queensland website.

Who is a ‘worker’?

To ensure you meet your WorkCover obligations and avoid any penalties for being uninsured or underinsured, it is important to understand who is considered a ‘worker’ and, therefore, who must be insured for workers’ compensation.

Section 11 of the Workers Compensation and Rehabilitation Act defines a worker as an individual. WorkCover Queensland clarify that if you engage a corporation they will not be a worker as only an individual can be a worker.

Remember, a person/individual can be a worker even if they have an Australian Business Number (ABN) or are responsible for their own tax.

The following people/individuals may all be considered workers under the Act:

  • Sole traders
  • Partnerships
  • Individuals engaged under a ‘contract of service’
  • Individuals engaged ‘for labour only’ or ‘substantially for labour only’.

Worker determination tests

WorkCover Queensland has developed a new ‘worker determination test’ to determine who is worker. Worker determination involves a series of tests that must be applied in order. If a person/individual is determined a worker according to a test, no further tests need to be applied.

Access the worker determination test on the WorkCover Queensland website.