Employer information on claims and rehabilitation

Rehabilitation information for employers

For: Employers and managers Information seekers

Rehabilitation is about achieving an early and durable recovery at and return to work following an injury or illness.

Your responsibilities

The rehabilitation authority (who is usually the employer) is responsible for managing the rehabilitation and return to work of an employee with a work-related injury or illness, under the Safety, Rehabilitation and Compensation Act 1988 (SRC Act).

Rehabilitation authorities must also comply with the:

These requirements include but are not limited to:

effectively managing rehabilitation
consulting with key stakeholders
ensuring rehabilitation case managers are appropriately skilled and capable
monitoring workplace rehabilitation provider services
monitoring rehabilitation functions and performance
considering the employee’s circumstances or changes in circumstances before arranging rehabilitation assessments
seeking and relying on information from the employee’s treating practitioner
seeking and taking into account the views of the employee about the person(s) conducting the rehabilitation assessment.

For more information about your obligations:

We recommend you develop and maintain a rehabilitation management system to help meet your legislative obligations and provide effective rehabilitation services to your employees.

Why return to work is good for everyone

Good work is good for our mental and physical health and wellbeing. Good work can also help in recovery from injury and illness.

If away from the workplace for a significant period, an injured or unwell employee may:

become isolated and depressed
suffer adverse socioeconomic consequences
become unemployable in the long term
experience family disruption, loss of self-esteem and quality of life
have higher rates of many health conditions and an increased risk of death.

It’s important to get people back to work as soon as it is safe to do so. See more about the benefits of safe and healthy work and good work design.

The importance of responding early

The longer someone is off work, the less likely they are to return. Work absence tends to perpetuate itself—if the person is off work for:

20 days—the chance of ever getting back to work is 70 per cent
45 days—the chance of ever getting back to work is 50 per cent
70 days—the chance of ever getting back to work is 35 per cent.

Therefore, providing early support to employees with an injury or illness to enable their recovery and return to work is critical. Employers have a central role in providing this support and responding quickly.

It’s important for an employee with an injury or illness to have a timeframe for their rehabilitation and recovery – employees are three times more likely to return to work if they are given a return date by their medical practitioner.

For more information, see the Return to Work information sheet (PDF, 702.9 KB) and Intervene early for actions.

Rehabilitation information for employers

Delegating rehabilitation functions

The rehabilitation authority (who is usually the employer) can delegate all or any of its functions and powers under the SRC Act to a specific officer or employee. This must be done in writing.

If you are a self-insured licensee, the contracted claims manager or reviewer named in your licence does not have authority to make or reconsider any rehabilitation determination. Those powers can only be exercised by your CEO or managing director, or an officer or employee that they have delegated that power to.

Starting rehabilitation before there is an initial claim determination

Rehabilitation should start as soon as possible and regardless of the employee’s intention to lodge a claim under the SRC Act.

Intervening early when an employee is injured or ill is not about liability – it is about returning an employee to work and to health.

Once you have been made aware of an employee’s injury, you can consider whether to arrange a rehabilitation assessment and program under either:

the SRC Act, or
your organisation’s rehabilitation or early intervention policy and procedures.

If you are considering arranging a rehabilitation assessment under the SRC Act, there are requirements that the rehabilitation authority must comply with prior to arranging the assessment and making the determination. These requirements can be found in the Guide.

Payment for costs relating to seeking information from treating practitioners

Comcare is unable to make payments for the costs associated with rehabilitation authorities seeking information from an employee’s treating practitioner as a requirement under the Guide. These costs must be met by the rehabilitation authority.

Rehabilitation assessments and program determinations and notice requirements

Comcare provides determination templates to support rehabilitation authorities meet the notice requirements when making a rehabilitation assessment determination under section 36, and a determination that an employee should undertake a rehabilitation program under section 37 of the SRC Act.

Rehabilitation costs before liability is determined

For employees of Commonwealth agencies, where a claim has been lodged with Comcare, most rehabilitation costs incurred before the determination of liability will be reimbursed by Comcare.

Pre-liability rehabilitation costs may include:

rehabilitation assessment with an examination (under subsection 36(3))
delivery of a rehabilitation program (under subsection 37(1)).

Payment for costs relating to rehabilitation assessments

There is no provision under the SRC Act for Comcare, as the relevant authority, to pay for rehabilitation assessments determined under subsection 36(1). Payment can only be made for rehabilitation assessment examinations conducted under subsection 36(3).

When liability is denied by Comcare

If Comcare denies liability for a claim, the rehabilitation authority can no longer arrange a rehabilitation assessment or provide a rehabilitation program under the SRC Act. For more information, see assessing a claim.

You may still provide rehabilitation to the employee according to your organisation’s rehabilitation policy and procedures.

An employee can apply for a reconsideration of the determination and then review by the Administrative Appeals Tribunal.

When the decision to deny liability for the claim is under review (under reconsideration or the Administrative Review Tribunal process), you should continue to rehabilitate your employee according to your internal rehabilitation policy and procedures.

Measuring rehabilitation performance

An important part of a rehabilitation management system is the ability to monitor performance against defined objectives and targets.

Measuring outcomes lets you know how you are tracking, and helps you adjust and influence behaviour. Some objectives and measures you can implement are:

Helping your people to get back to work

Average time from date of injury to first rehabilitation action.
Percentage of injured employees with a rehabilitation program in place if receiving incapacity payments.

Successfully getting your people back to work

Income continuance rates at one month, 13 weeks, 26 weeks and 12 months.
Outcome of rehabilitation—percentage of closed rehabilitation programs with no return to work, partial return to work and full return to work.

Getting good service from your workplace rehabilitation providers

Average cost of rehabilitation per case—can be broken down into physical versus psychological injury.
Percentage of injured employees who remain in employment at 13- and 26-weeks following rehabilitation program closure.

Your managers and executive leaders are supporting rehabilitation in your organisation

Percentage of cases where suitable duties have been found within the organisation.
Percentage of cases where a rehabilitation goal has changed due to a lack of suitable duties.
Compliance with the Guidelines for Rehabilitation Authorities is confirmed.
The rehabilitation management system is tested through review and is consistent with the rehabilitation authority’s performance objectives.

Relevant sections of the SRC Act

Part III of the SRC Act is focused on rehabilitation.

The sections of the SRC Act that are relevant to providing rehabilitation include:

Approval of rehabilitation providers—section 34 – provides Comcare with the authority to approve rehabilitation providers.
Assessment of capability of undertaking rehabilitation program—section 36 – provides the rehabilitation authority with the power to arrange a rehabilitation assessment.
Provision of rehabilitation programs—section 37 – provides a rehabilitation authority with the power to make a determination and arrangement for a rehabilitation program.
Review of certain determinations by Comcare—section 38 – provides Comcare with the authority to review a determination made by the rehabilitation authority. For self-insured licensees, this decision is reviewed by an independent person who was not involved with the original decision
Duty to provide suitable employment—section 40 – requires the rehabilitation authority to take all reasonable steps to provide the employee with suitable employment.
Requirement to comply with rehabilitation guidelines—section 41 – allows Comcare to issue rehabilitation guidelines to rehabilitation authorities. Rehabilitation authorities must comply with these guidelines.

For more information, see Your responsibilities as an employer.

Defence force exemptions from legislation

The SRC Act and Guidelines for Rehabilitation Authorities 2019 do not apply to members of the defence force injured on or after 1 July 2004. Members injured after this date are covered by the Military Rehabilitation and Compensation Act 2004 (MRC Act) administered by the Department of Veterans’ Affairs and the Military Rehabilitation and Compensation Commission.

Under the MRC Act, the Military Rehabilitation and Compensation Commission and service chiefs can delegate all or any of their functions and powers to a specific officer or employee.

The liable employer

The liable employer is the employer at the time of the work-related injury or illness.

The liable employer is responsible for costs associated with the employee’s time off work (incapacity), treatment and rehabilitation costs for the life of the claim.

Generally, the liable employer is also the rehabilitation authority. However, when an employee takes up employment with a new employer, the responsibility for rehabilitation sometimes changes and the liable employer is no longer the rehabilitation authority.

Tables 1 and 2 list the rehabilitation authority and relevant liability information for employees in different circumstances.

The rehabilitation authority – employee of an Australian Government agency or statutory authority

Table 1: The rehabilitation authority of employees of an Australian Government agency or statutory authority
Status of employee	Rehabilitation authority
1. Currently employed by an Australian Government agency or statutory authority.	The Australian Government agency or statutory authority.
2. Moves from one Australian Government employer to another.	The new employer becomes the rehabilitation authority and is responsible for the management of the employee’s rehabilitation. However, the liability is retained by the original Australian Government employer.
3. Temporarily transferred from one Australian Government employer to another where the employee continues to be paid by the liable employer.	The liable employer remains the rehabilitation authority.
4. Temporarily transferred to another Australian Government employer where the employee is paid by the new employer.	The role of the rehabilitation authority transfers to the new employer. This role reverts to the substantive employer at the end of the employee's temporary transfer.
5. Temporarily moves to an employer outside of the Comcare scheme, where the employee is paid by the new employer.	The last Australian Government employer remains the employee’s rehabilitation authority.
6. Leaves an Australian Government employer by any means (such as redundancy, resignation or involuntary separation) and takes up employment with another Australian Government employer.	The new employer becomes the employee’s rehabilitation authority.
7. An ex-Australian Government employee who takes up employment with a private sector company.	The last Australian Government employer remains the employee’s rehabilitation authority for the life of their claim.

The rehabilitation authority - employee of a self-insured licensee

Table 2: The rehabilitation authority of employees of a self-insured licensee
Status of employee	Rehabilitation authority
Currently employed by a self-insured licensee	The current employer
Leaves employment of the licensee (liable authority) and takes up employment with an Australian Government employer	Moves to the Australian Government employer
Leaves employment of the licensee (liable authority) and takes up employment with another licensee	Moves to the new licensee
Leaves employment of the licensee (liable authority) and takes up employment with a private sector employer (other than a licensee)	Retained as the last scheme employer (the licensee)

More information

Core capabilities

Rehabilitation case manager core capabilities (PDF, 602.9 KB) – defines the capabilities required of an effective rehabilitation case manager and provides resources.
Middle manager and supervisor core capabilities (PDF, 127.0 KB) – defines the capabilities required of a supervisor to effectively support recovery at work following an injury.
Claims manager core capabilities (PDF, 193.1 KB) – defines the capabilities required of a claims manager to work effectively with a rehabilitation case manager to coordinate an employee's rehabilitation and return to work.

Rehabilitation case manager handbook

Rehabilitation case manager handbook (PDF, 1.5 MB)

Rehabilitation management systems

Return to work

Steps in the return to work process
Return to Work factsheet (PDF, 702.9 KB) – your role as employer in the return to work process, strategies you can use to aid successful recovery and return to work.
Barriers to Return to Work literature review (PDF, 167.8 KB) – summarises current literature on the barriers to return to work, including injury characteristics, individual perceptions and workplace relationships.
Work Trials: A guide for rehabilitation case managers (PDF, 156.0 KB) – step by step instructions on how to place an injured employee with a host employer for a work trial.

Guide for Arranging Rehabilitation Assessments and Requiring Examinations 2024

Early intervention

Intervene early and know the warning signs
Early Intervention report (PDF, 1.1 MB) – reviews the effectiveness and cost benefit of early intervention within the Comcare scheme.

Page last reviewed: 09 December 2024