Incorrect WorkCover classifications can cost your business hundreds of thousands. We help employers challenge classifications and recover overpaid premiums.
Do you feel like your authorised WorkCover Agent has incorrectly classified your workplace or business, or that your premium is excessively high because your WorkCover Industry Classifications (WIC) is not right? The difference of being incorrectly classified adds hundreds of thousands of dollars to a business’s premium.
At Hentys, we know this is an all-too-common issue that many employers experience and do not know how to navigate due to the unknown and complex nature of WIC disputes.
Hentys has successfully assisted countless employers with WIC reclassifications, resulting in refunds of sometimes hundreds of thousands of dollars. We work for clients throughout Australia in Melbourne, Perth, Sydney, Adelaide, and Brisbane.
What Is a WorkCover Industry Classification (WIC)?
Every Victorian employer registered for WorkCover insurance is allocated a WorkCover Industry Classification (WIC). Your WIC reflects the predominant activity of your business and plays a significant role in determining your annual WorkCover premium.
While many employers assume their classification is based solely on the products they sell or the industry they operate in, WorkSafe considers a range of factors, including:
- The goods and services your business provides
- The activities carried out at your workplace
- Your predominant business activity
- Labour costs and financial information
- Equipment, machinery and production processes
- Whether you manufacture, distribute or provide services
- How your business operates on a day-to-day basis
Even businesses operating within the same industry can receive different classifications depending on how they actually conduct their operations.
Why Your WorkCover Classification Matters
Your WorkCover premium is largely driven by your industry classification. An incorrect classification may result in:
- Paying substantially higher annual premiums
- Ongoing overpayments year after year
- Cash flow issues
- Increased operating costs
- Difficulty competing with businesses correctly classified
- Retrospective reassessments
For larger employers, an incorrect classification can result in hundreds of thousands of dollars in unnecessary premiums over several years.
Common Reasons Employers Are Incorrectly Classified
Businesses change over time. Many classifications become outdated because:
- The business has diversified into new services
- Manufacturing has become primarily installation
- Retail has evolved into wholesale distribution
- Labour hire arrangements have changed
- Automation has changed the predominant activity
- The original classification was incorrect
- A merger or acquisition changed business operations
WorkSafe classifications should reflect the current predominant activity of the workplace rather than historic business operations.
Challenging WIC Designations
With extensive experience in challenging WIC designations, with relevant WorkCover Authorities, Insurers, VCAT and other Tribunals and Courts, Hentys offers a vast array of services to ensure that your WIC is correct, which includes, but is not limited to:
- Reviewing premium documents provided to you by your WorkCover Insurer or the relevant WorkCover Authority
- Undertaking Work Site Audits and reviewing your financial documents to determine the classification of your business, and whether there are grounds to challenge the WIC as determined by the relevant WorkCover Authority
- Preparing submissions to your WorkCover Insurer or the relevant WorkCover Authority to dispute an incorrectly assigned WIC
- Running your case on appeal before VCAT, or the relevant Tribunal or Court if your relevant WorkCover Authority or WorkCover Insurer do not agree to changing an incorrectly classified WIC
If you think your WIC is incorrectly classified or your business is suffering an unnecessarily high premium rate, our experienced team at Hentys will be able to assist you and your business in determining if your WIC is correct and challenge the validity of your WIC where we have determined an alternate classification in your business’s favour.
For urgent WorkCover and Employment matters, please call Timothy Ashton at any time on 0416 094 174.
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Why Choose Henty Lawyers?
Don’t let an incorrect classification drain your resources. Contact Hentys today to schedule a consultation and let our experienced team review your WorkCover Industry Classification. Together, we’ll determine if your business is paying too much and help you secure the fair and accurate classification you deserve.