In an important update for employers on workplace vaccinations, the Federal Government has announced a “no fault COVID-19 indemnity scheme”.

The scheme will protect employers who may face costly claims when they facilitate jabs in the workplace, reducing the risks and uncertainties businesses faced for implementing voluntary vaccination drives.

Revealed on Saturday by Federal Health and Aged Care Minister Greg Hunt, the scheme offers protections to Australians receiving vaccines that are approved by the Therapeutic Goods Administration (TGA), irrespective of where that vaccination occurs.

The detail of the scheme follows extensive consultation with the peak medical, healthcare, business and insurance sectors to ensure a comprehensive National Scheme.

It will provide Australians with quick access to compensation for COVID-19 claims related to the administration of a TGA- approved COVID-19 vaccine delivered through a Commonwealth Government approved program.

“Side effects, or adverse events, from COVID-19 vaccinations can occur, but most are mild and last no longer than a couple of days. Serious and life-threatening side effects are very rare, but it is important that we provide a safety net to support those affected,” Minister Hunt said.

“It also ensures that health professionals administering vaccines will be able to continue with their crucial role in the vaccine roll out with assurance that the claims scheme will offer them protection.”

The Scheme will be administered by Services Australia and will provide Australians with a single front door to a simple and quick administrative process for compensation. The TGA will provide guidance on recognised adverse reactions as part of their established surveillance program.

From 6 September Australians who suffer injury and loss of income due to their COVID-19 vaccine will be able to register their intent to claim from the COVID-19 vaccine claims scheme webpage.

The Scheme will cover the costs of injuries above $5,000 due to a proven adverse reaction to a COVID-19 vaccination. Claims will be assessed by independent experts, and compensation paid based on the recommendations.

The cost of compensation payments under this Scheme will be fully funded by the Commonwealth and is designed to help the small number of people who unfortunately experience a moderate to significant adverse reaction to a COVID-19 vaccine.

The COVID-19 Vaccine Rollout Scheme will be backdated to February 2021 and provide Australians with an alternative, administrative option to seek compensation, rather than a complex and costly court process.

Australians who receive a COVID-19 vaccination and have an adverse event are encouraged to report it to their doctor who can provide the information to the TGA to ensure such events are included in its reporting.

Employer Reaction

The Australian Chamber of Commerce and Industry (ACCI), of which AREEA is a member, has been advocating for indemnity protections so that employers would not be saddled with the costs from a reaction or injury caused by vaccination.

“We know that as vaccine supply grows, workplace vaccination programs will have an increasingly important role in the national rollout,” chief executive, Andrew McKellar said.

“Many employers had indicated that they are willing to assist and are actively considering workplace vaccination programs however, employers like clinicians raised ongoing concerns about indemnity arrangements to cover administration of COVID-19 vaccines.

“Businesses are strongly committed to playing their part in promoting the vaccination rollout having indicated that they are willing to assist and are actively considering workplace vaccination programs.

“Turning workplaces into vaccinations hubs will support reaching reopening thresholds, as well as assisting with the booster shot program in 2022.

“The 80 per cent vaccination threshold agreed to by National Cabinet is an ambitious target.  Businesses need all the available options to encourage people to get vaccinated.”

In an article featured in The Australian last week, AREEA chief executive Steve Knott said a meeting of executives from 20 resource sector companies found “most are planning or considering mandating” of site-based roles.

“They are currently in the “strong encouragement” and consultation phases for vaccine supply and legal process reasons,” Mr Knott said.

“Contracting entities are planning to respond to client directives for compulsory vaccination of all personnel working on clients’ worksites.

“Already some are requiring vaccinations for all staff travelling on both domestic and international flights.”

National Cabinet update

The National Cabinet met last Friday for the 53rd time to discuss Australia’s COVID-19 response, recent outbreaks of COVID-19 and the Australian COVID-19 Vaccine Strategy.

It agreed to establish a cross jurisdictional working group led by the Commonwealth Secretary of Health, with the heads of all state and territory Health Departments to report back to National Cabinet by 3 September 2021 (this Friday), on the health and hospital system capacity and workforce needs to address expected demands under the National Plan, taking into account the Doherty Institute modelling reports to National Cabinet.

“All leaders reiterated the importance of Australians, especially those in vulnerable groups, to get a COVID-19 vaccination,” Prime Minister Scott Morrison said. “Both the AstraZeneca and Pfizer COVID-19 vaccines are registered for use in Australia and are proven to be effective in preventing serious illness and death, as well as limiting transmission.”

National Cabinet also noted the work underway through the COVID-19 Risk Analysis and Response Taskforce report and the Doherty modelling for the National Plan to transition Australia’s National COVID Response.

AREEA’s Policy Position / Ongoing Advocacy

AREEA continues to advocate to government at all levels  that the business community requires greater national leadership from our legislators to help deal with the complex issue of workplace vaccination.

Employers in all sectors are faced with a growing conflict between their overarching duty to provide a safe workplace for all employees, including a COVID-safe environment, and the minefield of employment law considerations that might apply if they take a position of mandating vaccinations.

The resources and energy industry is highly dynamic and involves people constantly moving around the country, working in close quarters on high value assets and interacting with both CBD and regional community members.

It is highly likely that in the resources and energy industry, some employers will take the position that requiring employees to be vaccinated is critical to maintaining the safety of their workforce and the communities in which they work.

Employers need to be in a position to make such assessments and implement them with confidence that such a direction is lawful and reasonable and would not expose them to liabilities or prosecution.

To discuss AREEA’s policy positions and government advocacy, or to obtain a copy of AREEA’s Member Guide to the COVID-19 Vaccine, contact [email protected]