Be aware - Definition of 'psychological injury' may be changing
Important: Proposed, not yet law
The NSW Government wants to tighten up the types of claims being allowed under the NSW workers’ compensation scheme and has introduced a bill to make this happen.
One of these measures concerns claims for psychological injuries.
The NSW Government wants to ensure that only genuine claims for psychological injuries are allowed into the system by introducing measures such as:
Adopting the definition of ‘bullying’ used in the Fair Work Act 2009.
Applying a stricter and more objective definition of 'psychological injury'.
Providing a comprehensive definition of ‘reasonable management action’.
Allowing claims for 'psychological injury' caused by 'excessive work demands' (which is also a very strict and objective definition).
Prescribing the steps that need to be taken and tests to be satisfied before a claim for a psychological injury can be made under the NSW workers’ compensation scheme.
Other measures are also contained in the bill currently before parliament with perhaps the most controversial one relating to increasing the whole person impairment threshold that is required before an injured worker can be compensated for what is assessed to be a 'permanent impairment'.
The full text of the bill plus details concerning the progress of the bill throughout parliament can be found on the bill’s homepage.
At the time of writing this article, an inquiry into these proposals is being held, with a second hearing yet to be held. Therefore, there may be a delay before this bill is progressed any further.
Our recommendation: Be aware – however, needless to say, we will keep you posted!
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