Policy Purpose

Section 73 of The Workers Compensation Act (the Act) groups employers into four broad classes (Classes B to E).  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.  These employers are known as Individually Assessed Employers.

This policy provides a framework for the removal of claim costs from an Individually Assessed Employer's Claim Costs Account and transferring them to another employer in Classes B to E (Cost Transfer).

Typically, claim costs are removed from an Individually Assessed Employer's Claim Costs Account only through Cost Transfer, though in some circumstances Cost Relief or Cost Recovery may be provided.

Policy 31.05.10, Cost Relief/Cost Transfer - Class E Employers, provides a framework for the removal of claim costs from a Class E Employer's Claim Costs Experience through Cost Transfer or Cost Relief.

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