In a media release on Saturday 28 August 2021, the Minister for Health and Aged Care, The Hon. Greg Hunt announced details of a new no fault COVID-19 Vaccine Claim Scheme (VCS) which will operate nationally.
The scheme will cover the costs of those who suffer injury and loss of income for costs above $5,000, due to a “proven adverse reaction to a COVID-19 vaccination”.
Minister Hunt commented, “Side effects, or adverse events, from COVID-19 vaccinations can occur, but most are mild and last no longer than a couple of days. Serious and life-threatening side effects are very rare, but it is important that we provide a safety net to support those affected”.
VCS will be available from 6 September, when affected individuals can register their intent to claim on the scheme webpage.
The scheme will be backdated to February 2021, covering Australians who have suffered significant adverse reactions to vaccinations since then. It will apply provided that the vaccine used was a COVID-19 vaccine that is Therapeutic Goods Administration approved, irrespective of where that vaccination occurs. This will therefore cover Astra Zeneca and Pfizer vaccinations that occur under both state and territory or Federal Government programs (plus Moderna vaccinations, when they begin distribution).
The scheme provides significant incentives for employers to encourage and, in businesses where it is appropriate, mandate employees to have the vaccination.
However, there is no guarantee that employers will avoid any financial impost for employees who suffer serious adverse outcomes after receiving a vaccination.
This is because an employee who suffers a serious adverse reaction might still lodge a workers compensation claim. This would be made on the basis that the adverse reaction arose out of or in the course of their employment, based on the vaccine either being mandated or even merely encouraged by their employer (where they work in an industry where the vaccination is seen as important).
This is relevant to employers because there is a multiplier effect between the costs paid on a workers compensation claim and the increased premium that the employer pays. For large employers, this multiplier can be major and potentially between 3 and 5 times the actual claims costs.
Employers cannot require employees to lodge their claims with VCS rather than lodge a workers compensation claim. Employees can however be educated about the existence of VCS and the benefits available.
Whilst the benefits payable under VCS do not kick in until after $5,000 costs/loss of income has been incurred, from that point on it appears that the benefits of VCS will be superior to those under workers compensation. The reason is, based on the announcement, it appears that the VCS benefits will cover all costs in excess of $5,000, without caps on payments for loss of income or time periods for when they might expire. Payments under VCS are subject to assessment by independent medical experts, with compensation paid based on their recommendations. Hence, if they are rejected, that leaves open the prospect of the employee then lodging a workers compensation claim, with the causal connection between the vaccine and their subsequent condition being supported by their own treating health practitioners.
For further information on employers mandating vaccines and related issues, see links to previous articles on the Fair Work Ombudsman Guidelines and other critical questions for your workplace.
If you need advice specific to your workplace please contact our employment team.
