SIRA proposes updated framework for NSW workplace return to work

Feedback will prompt simplified, clearer employer return to work duties

SIRA proposes updated framework for NSW workplace return to work

Workers Compensation

By Roxanne Libatique

The State Insurance Regulatory Authority (SIRA) has issued draft changes to the guidelines for workplace return to work (RTW) programs in New South Wales and has opened a consultation process for employers, insurers, and other scheme participants. In a statement on Feb. 2, SIRA said it has revised the guidelines “to make it easier for employers across NSW to develop and implement compliant and effective RTW programs for their workers.” The guidelines outline how employers are expected to plan and manage recovery and return to work for employees with a work-related injury or illness.

Under NSW workers' compensation laws, all employers must have a written RTW program that sets out the policies, systems, and procedures they will use to support injured workers. SIRA has also drafted a companion document, “How to comply with the guidelines for workplace RTW programs,” which explains the regulatory requirements and provides additional detail on implementation. Consultation is being conducted through the NSW government’s Have Your Say website. Interested parties can lodge submissions or complete a survey from Feb. 2 until 11:59pm on Feb. 27, 2026.

Structure separates mandatory rules from supporting material

A central feature of the draft 2026 guideline is a more explicit separation between enforceable requirements and explanatory material. Under the proposal, mandatory requirements remain in the guideline itself. Each requirement is numbered, grouped into sections by topic, and linked to its underlying legislative authority. Where applicable, the guideline also notes the maximum penalties that may apply if an employer does not comply.

Additional explanatory material has been moved into a separate supporting document. SIRA has stated that this structure is intended to distinguish what employers must do under the workers' compensation framework from information that is provided as guidance, and to enable a more systematic review of RTW program obligations. The regulator has also indicated that obligations removed from the guideline but still in force under other legislation – such as work health and safety, privacy, and broader workers' compensation provisions – will be covered in updated employer information on the SIRA website.

Content changes address RTW program detail, training, and records

The draft guideline includes changes to the content of RTW requirements as well as the way they are presented. New content gives more detail on the elements that must be included in a workplace RTW program and, for category 1 employers, introduces minimum training expectations for staff involved in RTW activities. The draft also specifies circumstances where employers are required to retain evidence to demonstrate compliance, including records of RTW coordinator training and documentation of how the RTW program and suitable duties have been put into practice.

At the same time, certain matters have been removed from the guideline where they are already covered in other statutes. These include reporting notifiable incidents to the work health and safety regulator, first aid arrangements, aspects of workers' compensation payments and disputes, and privacy-related obligations such as obtaining informed consent, maintaining confidentiality, and record keeping. Although no longer set out in the RTW guideline, these remain legal requirements under work health and safety, workers' compensation, and privacy legislation. SIRA has said the overall aim of the changes is to streamline the guideline while maintaining the existing compliance framework and providing a clearer basis for assessing RTW systems before and after an injury occurs.

New compliance guide reflects common employer queries

The separate “How to comply with the guidelines for workplace RTW programs” document follows the same section headings and numbering as the draft guideline. It includes sample wording that employers may adapt for their RTW programs, points to consider when developing, implementing, consulting on, monitoring, and reviewing RTW arrangements, a standard RTW program for category 2 employers and links to further resources. SIRA has noted that many employers are found to be non-compliant with existing RTW requirements when engaged by inspectors, and that inspectors often provide similar explanations during those interactions. Bringing this material together in one document is intended to respond to those recurring issues and set out, in a single place, how SIRA expects employers to meet RTW program obligations.

‘Recovery at work insider’ focus areas

The consultation on the RTW Guideline follows SIRA’s December 2025 Recovery at work insider bulletin, which reviewed workers' compensation developments over the past year and described areas of focus for 2026. In that bulletin, SIRA highlighted a series of priorities:

  • Documented RTW programs
  • Injury notification to insurers within 48 hours of the employer becoming aware of the injury
  • Provision of suitable duties where reasonably practicable
  • Capability and accessibility of RTW coordinators
  • Early engagement of workplace rehabilitation providers
  • Use of SIRA-funded support programs, particularly in relation to psychological injuries

The bulletin also referred to an ongoing shift toward person-centred practices in claims management. “The evidence is clear, early intervention, clear communication, and tailored support significantly improve recovery outcomes,” SIRA said in the year-in-review publication. With psychological injury claims accounting for a relatively small proportion of new claims but a much larger share of workers not back at work after 13 weeks, SIRA signalled that person-centred and evidence-informed approaches will remain a focus.

Implications and next steps for insurance stakeholders

For workers' compensation insurers, agents, and intermediaries, the draft NSW RTW guideline may influence how advice is framed for employer clients on program content, training, and documentation, as well as how compliance expectations are reflected in underwriting, claims, and risk management discussions. SIRA has said it will use feedback from the consultation to assess whether it has “the balance right between simplifying the information and providing clarity about how employers can meet their RTW program obligations.” Once finalised, the guideline and supporting material are expected to inform regulatory engagement and workplace RTW practices across the NSW scheme from 2026 onwards.

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