1. Legal Framework: Under the Workers Compensation and Injury Management Act 2023 (WA) (WCIM Act), an injury includes the recurrence, aggravation, or acceleration of any pre-existing disease where employment was a contributing factor. This means that if a worker's job significantly contributes to worsening a pre-existing condition (whether physical or mental), the worker may still be eligible for compensation.
2. Causation and Liability: Arbitrators will examine whether the employment significantly contributed to the recurrence, aggravation, or acceleration of the pre-existing condition. Factors considered include the duration and nature of employment, the likelihood of the condition worsening regardless of employment, hereditary factors, the worker's overall health, and the worker’s activities outside of the employment.
3. Evidence and Documentation: Detailed medical records are crucial. They help demonstrate how the conditions have changed due to work-related activities. Courts rely on these records to determine the extent to which employment has impacted on the pre-existing conditions.
1. Reducing the risks of workers compensation claims: By identifying potential health issues from the outset, pre-employment medicals help employers to decide whether to employ a worker or not, what reasonable adjustments may be required, and assess the risks of the worker sustaining a recurrence, aggravation, or acceleration of a pre-existing medical condition based on the job duties that they would be required to perform. However, it is important the pre-employment medical assessment does not require the worker to disclose previous workers compensation claims, so as not to breach section 506 of the WCIM Act and incur a fine (i.e. a person cannot be required to disclose information about their workers compensation claims for the purpose of selection of employment). Further, a person (e.g. doctor) cannot disclose information about a person’s workers compensation claim for the purpose of providing information about the worker’s suitability for employment with a prospective employer.
2. Insurance costs: These pre-employment medicals can help keep insurance premiums low. By screening for potential health issues and preventing work accidents, insurance costs remain manageable. Conversely, if health issues are not identified through these assessments, the likelihood of workplace injuries increases, leading to numerous workers' compensation claims and inevitably higher insurance premiums for employers. Clean pre-employment medical assessments can also be used as a negotiating tool to lower premiums if the employer had workers compensation claims in the past which caused the premiums to flare up.
3. Risk management: Pre-employment medicals help employers assess whether candidates are physically and mentally fit to perform the inherent requirements of the job. This is particularly important in high-risk industries like construction and transportation. Medicals also ensure that workers are not placed in roles that could exacerbate existing health issues. This proactive approach helps in managing workplace health and safety more effectively.
4. Promoting workplace safety: Pre-employment medicals may help identify potential health risks that might lead to workplace accidents. This may enable employers to identify whether an worker can perform a job safely with reasonable adjustments made or at all. This pre-emptive measure helps prevent serious injuries, ensuring a safer work environment.
5. Reducing absenteeism, and turnover: Health-related absenteeism can be costly in terms of lost productivity. Hiring workers who are medically fit for their roles significantly reduces the likeness of them taking sick days and ensures the team remains strong. Pre-employment medicals therefore act as a first line filter to ensure ongoing turnover growth and smooth running of the business operations.
1. Transportation Industry
A logistics company required pre-employment medicals for all potential truck drivers. During the assessment, a candidate was diagnosed with untreated sleep apnoea, which could lead to excessive daytime sleepiness and increase the risk of accidents.
Outcome: The candidate was advised to seek treatment for sleep apnoea before being considered for the driving position. This proactive measure helped prevent potential road accidents caused by drowsy driving, protecting both the driver and the public.
2. Manufacturing Industry
A manufacturing plant required pre-employment medicals for all new hires. One candidate, applying for a role that involved operating heavy machinery, was found to have impaired vision that was not corrected by glasses or contact lenses.
Outcome: The company decided to place the candidate in a different role that did not involve operating machinery. This decision helped prevent potential accidents caused by impaired vision, ensuring the safety of the candidate and their coworkers.
3. Healthcare Industry
A hospital required pre-employment medicals for all nursing staff. During the assessment, a candidate was found to have a severe latex allergy, which could be triggered by exposure to latex gloves and medical equipment.
Outcome: The hospital provided the candidate with non-latex alternatives and ensured that their work environment was free from latex products. This measure helped prevent allergic reactions and ensured the candidate could perform their duties safely.
4. Mining Industry
A mining company required pre-employment medicals for all potential miners. One candidate was found to have a pre-existing respiratory condition that could be exacerbated by exposure to dust and other airborne particles in the mine.
Outcome: The company decided to place the candidate in a role that did not involve working underground or in dusty environments. This decision helped prevent respiratory issues and ensured the candidate's health and safety.
Requiring pre-employment medical assessments is one tool that employers can use to reduce the risk of workers making workers compensation claims, thus strategically avoiding high workers compensation premiums, whilst creating a safer and more productive work environment for the workers.
However, care should be taken to ensure the employer has a genuine need for the information, taking into account the nature and requirements of the worker’s role, to avoid breaching anti-discrimination legislation (e.g. to determine whether the worker can perform the inherent requirements of the role).
It is also important for employers to consider any privacy obligations arising under the Privacy Act 1988 (Cth) (where applicable) when dealing with health information generated from pre-employment medical assessments.
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This article was written by Kirsh Audit, Associate Insurance & Risk.