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 Many classifications become outdated because: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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WorkCover Classification FAQs
WorkCover Industry Classification Questions Answered
An incorrect WorkCover Industry Classification can affect your business’s insurance premiums and ongoing operating costs. Explore common questions about Victorian WorkCover classifications, premium reviews, classification disputes, appeals and potential refunds for employers.
What is a WorkCover Industry Classification (WIC)?
A WorkCover Industry Classification (WIC) is a classification assigned to a Victorian employer’s workplace based on the nature of its business activities.
The classification helps determine the industry rate used in calculating the employer’s WorkCover insurance premium.
The correct WIC depends on how the business actually operates, rather than simply its trading name or general industry description.
How does a WorkCover Industry Classification affect insurance premiums?
Each WorkCover Industry Classification is associated with an industry premium rate that reflects the relevant industry risk profile.
If a workplace is assigned an incorrect classification, its premium may be calculated using an inappropriate industry rate.
This can lead to higher insurance costs over multiple premium periods. Other factors, including remuneration and claims experience, may also influence the final premium.
How do I know if my business has the wrong WorkCover classification?
An incorrect classification may be identified when the WIC recorded on your WorkCover documentation does not accurately reflect the predominant activities conducted at your workplace.
Warning signs may include:
- Your business has significantly changed its operations
- The classification reflects an activity you no longer perform
- Your workplace has been classified under an unexpected industry
- A merger or acquisition has changed the nature of the business
- Your premium has increased without an obvious explanation
A high premium alone does not establish that the WIC is wrong. Hentys can review your classification and supporting business information to assess whether a dispute may be justified.
Can an employer dispute an incorrect WorkCover Industry Classification?
Yes. Employers may have options to challenge a WorkCover Industry Classification they believe has been incorrectly assigned.
A dispute generally involves examining the workplace’s actual activities, reviewing relevant documents and presenting evidence supporting a different classification.
Hentys assists employers with classification reviews, submissions to relevant authorities and available review or appeal processes.
Can my business receive a refund for overpaid WorkCover premiums?
A business may be eligible for a premium adjustment or refund where an incorrect classification has resulted in overpayment.
Whether a refund is available, and the period it may cover, depends on the applicable legislation, premium rules, decision and circumstances.
Hentys assists employers with reviewing historical premium information and pursuing appropriate reassessments where grounds exist.
How far back can a WorkCover classification dispute go?
The period that can be reviewed or adjusted depends on the applicable statutory provisions, the nature of the decision and the relevant circumstances.
Some disputes may involve historical premium assessments, but retrospective adjustments are not automatically available for every previous year.
Employers should seek advice promptly to identify relevant deadlines and assess whether earlier premium periods can be reviewed.
What evidence is needed to challenge a WorkCover classification?
A successful classification review generally requires reliable evidence explaining the activities undertaken at the workplace.
Relevant documents may include:
- WorkCover premium notices and classification records
- Business activity descriptions
- Financial statements and revenue information
- Employee duties and remuneration records
- Production or service delivery information
- Equipment and operational process records
- Workplace audit findings
Hentys reviews relevant documentation and may undertake workplace audits to support a classification dispute.
Can a business have more than one WorkCover Industry Classification?
Depending on the structure and activities of the business, different workplaces may qualify for different industry classifications.
However, operating multiple business activities does not automatically mean that each activity receives a separate WIC.
The correct approach depends on the applicable classification rules and how the workplaces and activities are organised.
Hentys can review businesses with diverse operations to assess whether their classifications are appropriate.
What happens if my business changes its operations or services?
Changes to a business’s predominant activities may affect the appropriate WorkCover Industry Classification.
Examples include a manufacturer moving primarily into installation, a retailer transitioning to wholesale distribution or a business substantially changing its service offering.
Employers should review whether their existing classification remains accurate and comply with relevant notification requirements.
Who decides a business’s WorkCover Industry Classification in Victoria?
Victorian WorkCover classifications are administered within the WorkSafe Victoria insurance scheme, including through authorised WorkCover agents.
Classification decisions are made by applying the relevant industry classification rules to the workplace’s activities.
Where an employer disagrees with a classification decision, formal review and dispute pathways may be available.
What happens if WorkSafe or my WorkCover agent rejects a classification dispute?
If a requested classification change is refused, an employer may have access to further review or appeal options.
Depending on the decision and applicable legislation, these may involve formal submissions or proceedings before a relevant tribunal or court.
Hentys assists employers with reviewing disputed decisions, preparing supporting evidence and pursuing available appeal processes.
Is a WorkCover Industry Classification dispute the same as a premium dispute?
Not necessarily. A WorkCover Industry Classification dispute concerns whether the workplace has been assigned the correct industry category.
A broader premium dispute may involve remuneration, claims experience, premium calculations or other insurance factors.
Hentys also provides workers compensation management services to assist employers with related premium and claims issues.
How does Hentys assist with WorkCover Industry Classification disputes?
Hentys assists employers in reviewing, challenging and appealing WorkCover Industry Classification decisions.
Services include:
- Reviewing WorkCover premium and classification documents
- Examining business activities and financial information
- Undertaking relevant workplace audits
- Identifying possible alternative classifications
- Preparing classification dispute submissions
- Communicating with insurers and relevant authorities
- Representing employers in available appeal proceedings
- Assessing potential premium adjustments or refunds
Hentys combines industry classification knowledge with workplace and insurance-related legal expertise to support employers through complex disputes.
Does Hentys assist with WorkCover classification disputes outside Melbourne?
Yes. Hentys is based in Melbourne and assists employers in other Australian cities, including Sydney, Brisbane, Adelaide and Perth.
Workers compensation classification rules and dispute procedures vary between states and territories. The appropriate advice depends on the relevant insurance scheme.
Contact Hentys to discuss your business’s classification, insurance premiums and available dispute options.
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.