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5 Questions On Over 65’s Workers Compensation

Are over 65's covered at work

Is An Employee Aged Over 65 Covered By Workers Compensation?

The answer depends on when the employee was injured. If the employee at the date of the injury was younger than retirement age (currently 65 years of age), then the employee if covered by Works Compensation is entitled to weekly payments (this does not apply to injuries received before 30 June 1985). However, their entitlement to Workers Compensation, weekly payments will cease on the day the injured employee reaches retiring age. Compensation for reasonably necessary medical and related expenses may be payable for up to 12 months after weekly payments cease.

The general rule is that an injured employee’s entitlements to workers compensation cease when they reach retiring age. Section 52 of the Workers Compensation Act 1987 (NSW) defines the retiring age to the age which a person is eligible to receive the age pension under the Social Security Act 1991 (Cth).  The retirement age; the age when a person is eligible to receive the age pension under section 23 of the Social Security Act 1991 (Cth) the age is currently 65 years of age. From July 2017, eligibility for the Age Pension will rise to 65.5 years then by 6 months every 2 years to age 67 by 2019.

When An Employee Turns 65 Does Their Cover Immediately Cease ?

If an employee reaches the retiring age or is older than it, and is injured at work, they are entitled to Workers Compensations (weekly payments) for up to 12 months after the first date of incapacity (this does not apply to injuries received before 30 June 1985). Compensation for reasonably necessary medical and related expenses may be payable for up to 12 months after weekly payments cease (this does not apply to seriously injured workers).

Can the employer seek to recover the unused portion of the insurance premium?

As employees of whatever age are covered for at least 12 months should they sustain an injury at work, they will be covered and as such there is no unused portion of any workers compensation insurance premium.

What are my responsibilities to have Workers Compensation Insurance for employees over 65?

Even though an employee has reached retirement age, the employer still has an obligation to pay Workers Compensation Insurance for each calendar year of employment. The employee will only receive up to 12 months of weekly payments for any injury sustained at work and reasonably necessary medical and related expenses may be payable for up to 12 months after weekly payments cease.  The employee will then be required to either obtain the Age Pension or withdraw their own superannuation.

Why is there a difference between employees aged younger than 65 and those over 65?

The original rationale for such restrictions was that, once an injured employee reached the retirement age of 65, the employee would have access to superannuation or other forms of income support, such as the Age Pension. Having access to these other forms of income support, the Governments of the States took the view that their Workers Compensation Schemes should not have to pay for such people, the Commonwealth Government or their persons own superannuation would be enough.

It is often the simple questions that are the most difficult to deal with. Often we don’t know what even to ask. To have Etienne Lawyers undertake a Work Health and Safety Review of your business or organisation to avoid the need for Workers Compensation Claims call us on 1300 882 032 or click here.

Author: Steven Brown