Who needs coverage?
As an employer in Queensland, it's mandatory to provide insurance for your workers against work-related injuries or illnesses through an accident insurance policy. Read this guide to workers compensation.
Determining who falls under the category of workers is crucial for accurately declaring wages and ensuring the appropriate coverage for your business. The legislative definition is elaborated in the following sections, offering guidance on identifying workers and distinguishing them from others.
Should any uncertainties arise regarding the classification of individuals as workers, feel free to reach out to us at 1300 362 128. We are here to assist you and address any inquiries you may have.
Who qualifies as a worker?
In general, all PAYG employees and certain contractors fall under the category of workers. However, the legal definition can be intricate, with exceptions to the rule.
Outlined in the Workers' Compensation and Rehabilitation Act 2003, a worker, as defined by WorkCover Queensland, is:
- An individual, not a corporation, partnership, or trust (although sole traders may be considered workers).
- A person working under a contract, assessed for PAYG withholding as an employee.
- Someone working under a 'contract of service,' akin to a sub-contractor, performing tasks similar to an employee and falling under the Act. A 'contract of service' involves the employer-employee relationship, distinct from a 'contract for services,' which typically pertains to arrangements with contractors.
Simple tests can aid in determining who qualifies as a worker. Further details are available for reference.
Employee or Contractor?
Distinguishing between an employee and a contractor relies on six main points, established by common law. These factors include considerations like payment structure, provision of tools, and liability for work-related faults. If you still have questions about employees and contractors you can use our employer guide (PDF, 1.1 MB) to take you through the steps to identify a worker versus a contractor
Contractor Coverage
Even if a contractor possesses an Australian Business Number (ABN) or handles their tax responsibilities, they are still regarded as a worker if operating under a 'contract of service.' Deciding whether coverage is required involves utilizing tools such as the ATO's ABN Lookup or assessing the contractor's status through the ATO 6 key common law principles.
Interstate or Overseas Workers
Determining the need for coverage for workers employed outside Queensland involves specific tests. WorkCover offers insights into responsibilities and coverage requirements for interstate and overseas workers.
Apprentices, Unpaid Interns, Volunteers, and Work Experience Students
Apprentices are classified as workers and are covered by the policy, with potential premium benefits through an 'apprentice discount.' Unpaid interns are considered workers since July 1, 2020, and must be declared, although no premium is charged. Volunteers and students on work experience or vocational placement may or may not require coverage, depending on the organization's choice and eligibility.
For specific queries or guidance, contacting WorkCover at 1300 362 128 is recommended.