What changes do local governments need to make?

What do the changes to Western Australia's (WA's) workers' compensation legislation mean for local governments?

The Workers Compensation and Injury Management Act 2023 effective 1 July 2024, replaces the 1981 Act, with all provisions rewritten in plain English and in line with modern drafting principles.

The new Act clarifies leave accruals during workers' compensation, requiring local governments to understand these changes and update their payroll systems to comply with their legal obligations.

What happens to annual leave, sick leave, and long service leave while on workers' compensation?

Previously, personal leave did not accrue during absence on workers' compensation, and long service leave only accrued up to three months each calendar year.

This changes under the new Act

Now, annual, long service and sick leave accrue while an individual is on workers' compensation, aligning WA with most other states.

Can workers take leave while receiving workers' compensation payments?

Yes. The new Act clearly outlines that an employee can take annual leave or long service leave while receiving workers compensation payments.

What about personal leave?

Under the new Act, workers continue to accrue personal leave while on workers' compensation. However, they cannot take sick leave while receiving income compensation.

If an employee takes sick leave, and then qualifies for workers' compensation during that same period, their sick leave converts to workers' compensation, and that period of sick leave must be reinstated.

Local governments must update their payroll processes to ensure that all annual leave, long service leave and sick (personal) leave continues to accrue for employees on workers' compensation.

A more detailed article will be published in our Spring edition of Risk Matters.

In the meantime, please submit any questions you have to the LGIS WorkCare Team at workcare@lgiswa.com.au