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ARTICLE · 12 AUGUST 2015

WorkCover Qld required to indemnify employer in third party contractual claim

This decision raises questions about an employer's ability to obtain indemnity from WorkCover for contractual claims.

AustraliaInsurance

A decision in Queensland about workers' compensation has raised questions about an employer's ability to obtain indemnity from WorkCover Queensland under the Workers' Compensation and Rehabilitation Act 2003 (WCRA) for contractual claims.

In Byrne v People Resourcing (Qld) Pty Ltd & Anor, the employer sought and won indemnity from WorkCover Queensland for a claim for contractual indemnity by a third party (in this case, a host employer) noting that in the previous case of Bonser v Melnacis [2000] QCA 013 the Queensland Court of Appeal restricted the joinder of an employer in negligence, where an injured worker is precluded from claiming common law damages from an employer.

The decision that WorkCover is required to extend indemnity to an employer for any liability in contract to a co-tortfeasor has the potential to shift the burden for such claims from public liability insurers to WorkCover—at least in the short-term. Some uncertainty remains about the impact of

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