Bosses dodge payments to staff under ACC Employers Programme

Tuesday, September 3, 2019

A new advocacy service will help Kiwis navigate difficult ACC claim processes, but workers may still face uphill battles if their employer is signed up to the ACC Employers Programme.

The Young Workers Resource Centre (YWRC) applauds Minister for ACC Iain Lees-Galloway for introducing the free Navigation Service.

But the youth rights organisation is concerned it won’t prevent workers from being denied cover under the controversial Accredited Employers Programme (AEP).

“ACC claims can be a labyrinth to traverse for working people, and particularly young Kiwis, so we’re thrilled to see the new Navigation Service being established,” says YWRC spokesperson Tony Stevens.

“But we’re worried it doesn’t go far enough. While it will be helpful to Kiwis who have to communicate directly with ACC when they get injured, is it going to help those workers whose employers are standing in the shoes of ACC under the Employers Programme?”

The AEP is a voluntary scheme employers can sign up to where their work levy is reduced significantly in exchange to taking responsibility for managing, and paying, their employees claims.

This means that if the employer approves a worker’s claim, they then must pay all claims costs including compensation when they can’t work.

“The problem with this is the employer now has an incentive to deny their employee’s claims because they don’t want to pay the costs,” says Stevens.

“We’ve seen employers stall the claims process for months and even refuse very reasonable claims – and they can get away with it using the AEP.

“Accident compensation should be totally neutral, and employers should not have the power to refuse claims. This is ACC contracting out their public responsibilities.”

“Will the Navigation Service act for those workers who get shut out by employers who just want to reduce their costs?”

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