Ever thought Victoria’s complex workers’ compensation laws are as clear as mud? You’re not alone. Historically, these laws have been notoriously complicated for employers to navigate.

Below is a summary of the key changes that the recently introduced Workplace Injury Rehabilitation and Compensation Amendment Bill 2025 (Bill) proposes, to increase the capabilities of those responsible for managing return to work and claims.

If passed, the Bill will implement recommendations from the independent review of WorkSafe Victoria’s management of complex workers’ compensation claims undertaken by Peter Rozen KC.

What are the objectives of the Bill?

The Bill seeks to introduce a formal Code of Claimants’ Rights (Code) intended to focus on the treatment of claimants as well as compensation entitlements for close family members (especially in cases of work related fatalities). The Code will also set higher service standards for WorkSafe, its agents and self-insurers.

The Bill has a stated aspirational objective of the scheme: to provide a high(er) quality service that ensures all claimants and users of the scheme are treated fairly, respectfully and with dignity. “All claimants and users of the scheme” have been grouped to include anyone with entitlements, grouping injured workers, dependents of a deceased worker and other family members of deceased and injured workers.

Key changes

While the Bill largely aims to enhance and protect the rights of claimants, importantly, it does propose additional obligations for employers and their return-to-work coordinators. Namely, it will require employers to:

• ensure return-to-work coordinators complete approved training within a required period, or holds an approved qualification;
• permit return-to-work coordinators paid time away from the workplace to complete approved training paid for by employers; and
• provide return-to-work coordinators with the facilities and assistance they reasonably require to perform their functions (although details about what facilities and assistance are ‘reasonably required’ have not yet been provided).

Under the Bill, “Approved qualification and training” means a qualification and training approved and/or determined by the Minister.

Penalties for non-compliance

While many employers will have processes in place to address the above proposed statutory obligations, employers should be aware that if the Bill is passed into law, a failure to comply with the new return-to-work coordinator provisions will be a breach of the Act, with proposed fines up to 120 penalty units for individuals or 600 penalty units for a body corporate, per breach.

Importantly, where an employer commits an offence under the new return-to-work coordinator provisions, an officer of the body corporate could also be taken to have committed an offence against those provisions, where it can be established that they failed to exercise due diligence to prevent the offending.

What does this mean for you and your organisation?

Workers’ compensation legislation can be incredibly complex and, at times, stressful, due to the many moving parts surrounding the management of injured workers and related claims. By proactively ensuring compliance with these new requirements, organisations can ensure an improved approach to managing ill and injured worker claims and avoid penalties if/when the Bill is passed into law.

We recommend that employers proactively consult with return to work coordinators to ensure appropriate training and systems are provided and available to ensure claims and return to work processes are handled in an efficient and effective matter in anticipation of these things becoming positive obligations imposed upon employers.