Recently, there has been significant attention around a case where a worker successfully appealed her workers’ compensation claim after injuring herself while working from home. The injury occurred when she tripped over a temporary puppy fence on her way to the kitchen during an authorized break. The worker had been approved to work from home to care for a colleague’s puppy.
In this instance, a Working from Home risk assessment had not been completed. The Tribunal concluded that the employer had failed to ensure a safe working environment at home, stating that the employer’s responsibility remained despite the worker’s voluntary exposure to an unusual risk. Media reports suggest that the compensation payout could be as high as $275,000. See Lauren Vercoe v Local Government Association Workers Compensation Scheme.
A similar case occurred in 2023, where another worker was injured at home while caring for a puppy. This time, the puppy was tied up outside the house to reduce noise, as the worker was conducting phone and video counselling sessions authorized by her employer. Unfortunately, another dog attacked the puppy outside. Amongst other findings, the court determined that the employer's requirement to limit noise levels had contributed to the risk, as tying the puppy up outside increased the likelihood of injury. See Knight v Western NSW Local Health District.
This should be a big wakeup call for employers as to how they approach working from home arrangements, both from a legislated approach (i.e. what arrangements are in place to terminate the arrangement), determining whether they have the capacity, knowledge and resources to enable safe working from home arrangements, and if not, whether they are prepared to handle the potential fallout and impact on attraction and retention of quality workers in situations where working from home is not permitted or offered. Each of these considerations merits serious consideration.
One thing I always like to remind employers of, is that their workers compensation insurance is like any other insurance. Evidently no employer wants to be hit with a $275k payment, however, ultimately it is the insurance policy (and subsequent premiums) that bear the brunt of the claim (except of course where the claim becomes a common law claim due to negligence by the employer).
In my search for detailed statistics on workers' compensation claims related to working from home, I found a report from Queensland’s workers’ compensation regulator, which noted over 100 successful claims in the 2020/2021 period for injuries sustained while working from home.
Key Takeaways for Employers and Workers
Home as a Workplace: When workers work from home, the home space becomes their workplace.
WHS Responsibilities: Remote work does not relieve employers or workers of their WHS obligations.
Duty of Care: Employers must still ensure, as far as reasonably practicable, that the work environment is safe. Workers must still work safely and follow reasonable and legal instructions, requirements and directions.
Breaks Are Work-Related: Injuries occurring during an authorized break, such as a coffee break, can still be linked to work and covered under workers' compensation, provided any act undertaken by the worker does not contravene workers compensation legislation.
Broad Legal Interpretations: In the case examples provided in this article, there seems to be a broad interpretation of what constitutes a work-related injury when working from home, with the general interpretation of this being that if it occurs at the home workplace it has occurred as if it happened in the workplace.
It’s a challenging situation for employers. On one hand, workers are pushing for more flexible working arrangements and demanding the right to work from home. On the other hand, employers are concerned about the potential for costly and unpredictable workers' compensation claims like the ones mentioned. In my view, such extreme claims might have been hard to prevent, even with a comprehensive risk assessment process (Working from Home Agreement/Checklist) in place.
But, if this becomes a legal precedent, it could lead to employers rejecting remote work altogether due to the perceived risks. So, if employers believe they are in a position to meet their safety obligations, how can employers protect themselves and their workers while supporting remote work?
Practical Steps Employers Can Take
Develop a Working from Home Policy: Ensure there are guidelines in place for remote work that outline expectations and safety requirements, and that these are understood by Managers.
Conduct a Risk Assessment: Ensure a thorough evaluation of the home office environment is undertaken for hazards, taking into account both physical and mental health considerations and ensure that any unacceptable risks are addressed and closed out prior to the arrangement commencing.
Monitor Mental Health: Include provisions in the risk assessment for psychosocial hazards arising from stress, isolation or workload, and proactively implement strategies to mitigate these risks.
Continuous Review: Do not adopt a ‘set and forget’ mentality to working from home arrangements. Make the time and effort to implement regular documented reviews of the arrangement and require workers to report any changes in their home environment that could impact their safety or work performance.
Ensure Ergonomic Workspaces: If necessary, provide workers with the necessary equipment for a safe and comfortable home office, including appropriate desk, chair and equipment, as would be the case in the traditional office environment.
Equip for Safety: Ensure all work equipment is safe, functional, and appropriate for home use.
Consult with Workers: Discuss potential risks, including mental health issues and home-based hazards, and work with workers to put appropriate control measures in place.
Conclusion
WHS is being shaped by the world we are living in. The rise of remote work has made workplace safety more complex, and employers need to adapt to the changing landscape. If your business has not yet addressed these key considerations as part of your overall safety management plan, now is the time to do so to protect your business, your workers, and yourself.
The trend toward more flexible work arrangements is unlikely to slow down. Presently, the Clerks Award is under review and will include rights for employees to request working from home arrangements. With the right policies and procedures in place, employers can help ensure a safe and productive remote work environment while minimizing legal and financial risks.
If you need help developing a tailored Working from Home Policy and provision of a Working from Home Agreement and Review Form for your business, please don’t hesitate to contact iFreelance.
Gina Clayton
Business Owner & Consultant
Disclaimer:
The information provided in this article is intended for general safety informational purposes only. While every effort has been made to ensure its accuracy, the author does not guarantee the completeness, reliability, or suitability of the content for any specific purpose. The reader is advised to consult with relevant legal experts before taking any actions based on the information provided. The author is not responsible for any omissions, errors, or any consequences that may arise from the use of this article
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