Policy Purpose

Section 73 of The Workers Compensation Act (Act) groups employers into four broad classes (Classes B to E). Class E Employers pay for the costs of the workers compensation system based on their payroll and Claim Costs Experience. These employers are subject to the collective liability provisions of the Act. Employers in Classes B to D are individually liable for the claim costs of their workers plus their share of administrative costs of the workers compensation system.

This policy provides a framework for the removal of claim costs from a Class E Employer's Claim Costs Experience and assigning them to a collective cost pool (Cost Relief) and for the transfer of claim costs from a Class E Employer to another employer in Classes B to E (Cost Transfer).

Policy 31.05.15, Cost Transfer - Individually Assessed Employers, provides a framework for the removal of claim costs from the Claim Costs Accounts of employers in Classes B to D through Cost Transfer.

Appendix A to this policy is a glossary of commonly used terms.