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Have Your Say: ReturnToWorkSA Labour Supply Model Review

We are reviewing our current approach within the labour supply industry in South Australia and we are seeking input from labour supply employers operating within the State on how this model works in practice and whether it should change.

Our Labour Supply Model determines the information that labour supply employers are required to provide to us so that we can accurately calculate their insurance premium and how claims are allocated when employers have multiple locations/South Australian Industry Codes (SAIC).

Feedback invited from labour supply employers

Labour supply employers are invited to attend a workshop to provide their feedback on the current Labour Supply Model, let us know if changes should be made, and be involved in developing solutions for a new model.

The workshop will be held on Friday, 20 July 2018, 2:00pm - 4:00pm at ReturnToWorkSA, 400 King William Street, Adelaide.

Register your attendance

Employers who are unable to attend this workshop can provide their feedback via email at laboursupply@rtwsa.com by 30 June 2018.

Background on the current model

Within the labour supply industry in South Australia, currently there are 427 registered employers encompassing 6,571 locations and five self-insured employers with a total of 451 locations within the labour supply industry.

Our current approach requires:

  • Labour supply employers to add to their registration additional locations for each SAIC used by a host employer to whom they place workers.
  • A separate location to be registered for the non-placement staff ie administration staff of labour supply employers.
  • Annual remuneration declarations to include remuneration broken down for each location/SAIC. Remuneration information (estimated and actual) must be kept in relation to each location/SAIC.
  • Each SAIC (location) to be registered only once, even if there are multiple host employers with the same SAIC. This means that one location for each SAIC that workers are supplied.
  • Annual remuneration declarations to include remuneration broken down by each location/SAIC.
  • Claims to be allocated based on the applicable location/SAIC.

The model has been in place since July 2014 and was developed to overcome employers' dissatisfaction with all SAICs being allocated to one of three labour hire categories.

Issues identified with the current model

Due to increased growth in the number of labour hire businesses operating in South Australia, and feedback provided by employers, it has become clear that aspects of our current Labour Supply Model have led to a significant increase in administration costs (time and money) for both ReturnToWorkSA and employers.

In considering changes to the current model we welcome feedback from labour supply employers on the following issues:

  • Administratively, labour supply employers are required to advise us of new SAIC requirements (locations) for their registration throughout the year. Many employers have in excess of 50 locations per registration with some employers having greater than 100 locations.
  • In most cases new SAIC’s/locations are not advised and need to be activated at the time of reconciliation to enable accurate premium determinations.
  • Each time a new location/SAIC is registered with us in relation to a new host employer, we are required to confirm the details of the relevant SAIC to labour hire employers by issuing them with an Industry Premium Rate Schedule.
  • Employer Claims Summary Reports are provided to employers each quarter which regularly identifies significant issues around the accuracy of coding of claims against the correct location/SAIC of the host employer where the injury occurred.
  • It is a common occurrence that many claims appear on the Labour Supply Services SAIC 721201 which is the labour hire supplier’s own employees. This may have implications going forward of setting a premium for this cohort.
  • The provision of remuneration data is a significant administrative burden, particularly for employers who supply workers in multiple industries sometimes in excess of 100 locations.