Business owners with employees entering mine sites may need to take out additional workers’ compensation insurance with Coal Mines Insurance (CMI), a subsidiary of Coal Services, from early October.

Australian Business Lawyers & Advisors (ABLA) said some companies have previously remained unaffected by the coal industry legislation, however recent changes passed by the NSW Government under the Coal Industry Amendment Act 2018 have now extended employers’ legal obligations and requirements.

Associate Director of ABLA’s Newcastle office, Kyle Scott said the new rules will affect many firms currently working in or around mine sites.

“The changes affect workers who engage in various activities which provide ancillary services to the mining industry including equipment maintenance and repairs, and also those involved in construction projects,” Kyle said.

“Employers should carefully consider which workers will now require coverage under the new CMI scheme.”

ABLA said significant implications for affected business owners include increased policy costs, mandatory pre-placement medical assessments, additional record keeping and reporting obligations, selecting the correct CMI risk category and, in certain circumstances, the need to have two different policies for the one worker.

“The multiple policy issue is likely to create all sorts of difficulties for businesses,” Kyle said.

“Where employees spend some of their time working in or around a mine and the remainder working elsewhere, employers must now have two policies to cover that one worker.

“They will also need to estimate the percentage of their employee’s total work activity in or about a mine, and then split and declare wages between the two policies.”

Companies may risk hefty financial penalties if they do not meet the new workers’ compensation requirements when the Coal Industry Amendment Act 2018 is enforced from October 1.

“It’s important for any business owner who thinks they could be affected by the new rules to seek advice regarding their workers’ compensation insurance obligations,” Kyle said.

ABLA offers solid legal experience across the workplace, employment, corporate and commercial practice areas. As a wholly owned subsidiary of NSW Business Chamber, ABLA’s unique position allows it to represent and advocate for business while providing expert advice to help resolve problems.

IMAGE | Associate Director of ABLA’s Newcastle office, Kyle Scott.