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Vocational Rehabilitation

Vocational Rehabilitation. Hazel Armstrong Barrister and Solicitor June 2009. Challenges. In this presentation I am focussing on the legal incentives provided by the 2008 Amendment Act New incentives on employers and ACC to help older workers to recover and get back to work

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Vocational Rehabilitation

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  1. Vocational Rehabilitation Hazel Armstrong Barrister and Solicitor June 2009

  2. Challenges • In this presentation I am focussing on the legal incentives provided by the 2008 Amendment Act • New incentives on employers and ACC to help older workers to recover and get back to work • New incentives to provide high quality rehabilitation • New incentives to provide for longer periods of rehabilitation • New provision focussing on fair compensation for injured employees

  3. Vocational rehabilitation and ageing workforce • People are working for longer – NZ has an ageing workforce • Desire for employers and society to retain skilled older workers in the workforce • Desire by workers to stay in the workforce longer to retain connection to the workplace and to maintain higher income from earnings (cf superannuation)

  4. Reasons for ageing workforce • Age of eligibility to superannuation may be extended out to 67 • Level of superannuation may not be sufficient to support people living solely on superannuation • Family members may not be in a position to support older people at home • Society may wish to encourage people to stay in work longer • People are healthier for longer

  5. Age Discrimination and vocational rehabilitation • From 1st October 2008 IPRC Act amended • Section 85 – provision of vocational rehabilitation – amended • Receipt of superannuation no longer a ground for discrimination against claimants seeking vocational rehabilitation

  6. Age discrimination and vocational rehabilitation • ACC cannot discriminate on the basis of age. • Section 19 of the Bill of Rights Act and Human Rights Act applies. • Section 21, The Human Rights Act 1993 prohibits discrimination on the basis of age. • An employer cannot discriminate on the basis of age. Section 105 ERA says such discrimination is a ground for a personal grievance.

  7. New duty to provide VR • If an older worker is injured whilst they are employed, there will be a duty to provide vocational rehabilitation on the employer and ACC. • An injured ageing worker can seek vocational rehabilitation. • If an employer does not provide vocational rehabilitation and terminates the employee because they are not medically fit to work, this would be a ground for unjustifiable dismissal.

  8. New policy for ageing workforce • ACC and the employer should provide information about these new rights. • ACC and employers should advise ageing workers how to access vocational rehabilitation.

  9. High Quality RehabilitationVR can be for longer than 3 years • From 1st October 2008 VR can be longer than 3 years in duration • E.g. graduated return to work, selected duties • Retraining can be 3 years in duration • Legal incentive has been provided to ensure full recovery before return to work • Employers risk PG or review proceedings under IPRC Act.

  10. High Quality RehabilitationEarnings to be taken into account • From 1st October 2008, the person’s earnings at time of injury are relevant when deciding on suitable alternate work • Relevant for those in employment and those whose employment has been terminated. • VR must be tailored to high quality rehabilitation outcomes • This provision applies for rehabilitation plans developed after 1st October 2008.

  11. New Policy - Abatement • Earnings do not include: • payment made on termination of employment in respect of leave entitlements (e.g. holiday pay) (NEW) • Redundancy payments • Retiring allowances e.g. medical retirement • Pensions Therefore these earnings cannot be abated against weekly compensation. Collective Employment Agreements should be amended to reflect the IPRC Act 2001.

  12. Conclusion • The amendments to the IPRC Act 2001: • Provides incentives for high quality Vocational Rehabilitation • Poses new challenges to employers and ACC • Gives greater protection to injured employees especially ageing workers

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