COVID-19 NSW: Business – JobCover6 Program

This program aims to offer financial incentive to employers who provide short-term work opportunities to help injured workers who are looking to gain new employment during the COVID-19 crisis. It seeks to help workers locate suitable work where ongoing employment cannot be secured with a new employer during the COVID-19 period.

The program supports employers to offer employment for up to six months duration to a worker recovering from a work-related injury, where the worker is looking for new employment. It provides benefits to a new employer to help offset the costs of engaging and training a new worker. The benefits include:
- Incentive payments of up to $10,400 for up to six months.
- Exemption of the worker's wages from their workers compensation premium calculation for two years.
- Protection against the costs of changes to the worker’s existing injury for up to two years.

The program benefits can be used individually, as a combination, or as a total package to meet the needs of the employer and worker.

The weekly incentive payment is a maximum amount of $400 per week. Payments are calculated on a weekly basis. The amount paid will be either the gross weekly wage paid to the worker, or $400 per week should the gross wage exceed the weekly incentive payment amount.

The employer may claim the incentive payment at the end of the placement. If the placement is 12 weeks or longer, the employer and insurer should negotiate a payment schedule which is easy to administer and will maximise the worker’s recover at work outcome.

SIRA is currently determining if the JobCover6 program will continue beyond 31 December 2020. Any programs approved and/or commenced until a decision is communicated will be eligible for payment provided the usual eligibility criteria are met.

Eligible applicants include employers who must:
- Have no workers compensation liability to the worker (are a different employer to the pre-injury employer).
- Have offered employment to a worker for an agreed period.
- Hold a current workers compensation policy with an insurer or a self-insurer’s licence.
- Not be grouped with the pre-injury employer for workers compensation insurance or insured under the same group self-insurer licence as the pre-injury employer.
- Not be in receipt of any other wage subsidy for the worker.
- Demonstrate adherence to their jurisdiction’s workers compensation and workplace health and safety legislation.

Eligible employment arrangements include:
- Full or part-time work.
- Casual, labour hire or contract arrangements where there is a formal agreement with the employer.
- Temporary employment, where there is a fixed-term agreement.
- Seasonal work.

The work must:
- Be appropriate to the worker’s skills, functional and work capacity and is the most suitable option for the worker’s circumstances.
- Assist the worker to remain engaged and active and supports their recover at work plan.
- Be safe and suitable for the worker.

A worker is eligible if they:
- Have capacity for work and they are looking for new employment.
- Are receiving, or are entitled to receive, weekly workers compensation payments under the Workers Compensation Act 1987 (1987 Act) or just prior to the COVID-19 pandemic they were engaged in suitable work with their pre-injury employer.
- Haven’t accepted a commutation or work injury damages settlement.