Workers Compensation Act 1951

Arrangements may be entered into under this section to encourage the employment of injured workers by providing financial incentives to their employers in relation to insurance liabilities arising from further injuries to the workers.

An insurer who is liable to pay compensation to an injured worker may enter into an arrangement with a new employer (the new employer) of the injured worker providing for either or both of the following:

for the insurer to indemnify the new employer in relation to the employer’s liability to pay compensation to the injured worker under this Act;

for the insurer to pay a wage subsidy to the new employer in relation to the worker’s employment.

An arrangement under this section—

applies for 6 months or, if a period is stated in the arrangement, that period; and

if it provides for an indemnity—applies to all injuries or only to the injuries stated in the indemnity arrangement; and

is subject to the conditions the insurer decides and the new employer agrees to.

A claim for compensation for an injury to the worker to which an indemnity under this section applies is excluded from the claims experience of the new employer in working out the premium payable by the new employer for an insurance policy.

This section applies only in relation to licensed insurers.