WorkSafe Initiate Enquiry into Labour Hire Services Industry Rate Increase

11 January 2024

As members may be aware, at the start of the financial year WorkSafe Victoria announced a significant increase to the Victorian WorkCover Industry Rate for Labour Hire Services. This rate, which is used to calculate premiums has sky-rocketed from 3.106% to 7.469%. This has seen members who supply in Victoria hit with a massive WorkCover bill. Notably, our rate now surpasses most of the workplaces that our members supply into, and dramatically exceeds comparable industries, where rates typically range from 1 to 2%.

In response to this drastic increase, RCSA held a round table with WorkSafe on the 23rd of November to peruse transparency on the cause of this issue. It was a positive opportunity to provide greater context to the concerns we have raised in writing. It certainly felt, for the first time in our engagement on these issues, as though the concerns we have shared repeatedly with government were actually being heard.

Following this roundtable, RCSA had a very productive meeting with WorkSafe, in which it was acknowledged that there was clearly an issue relating to the jump in the industry WIC that warranted further investigation and exploration. WorkSafe is now in the process of undertaking a review of all claim allocations made against the Labour Hire industry code back dating back to 2018, with letters being sent to over 300 employers who have made claims against the allocated WorkCover code. WorkSafe will moreover allocate an agent to workplaces who have made multiple claims, to ensure there is no maladministration occurring throughout this process.

This is a terrific outcome for our members and the industry more broadly. The aforementioned letters have begun to be distributed via WorkSafe, and RCSA will promote and support the activity through member communications in 2024. If members do receive a letter, please ensure you comply with the contents and assist with providing information where relevant, to ensure this process runs as smoothly and accurately as possible.

Should members have questions, concerns, or feedback, please do not hesitate to contact Lily Andrews from our Advocacy Team on [email protected] or 0448 332 610.