9.10 Employer Incentives

Policy Statement

Veterans undertaking a DVA rehabilitation program and in receipt of DVA incapacity payments, may be further supported to obtain secure and sustainable employment by incentive payments to an eligible employer.

Authority

Legislative authority is contained in the following Acts:

  • Military Rehabilitation and Compensation Act 2004 (MRCA), subsections 51(5), 60, 62, 62A;
  • Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA), subsections 37(4), 40, 40A.

Intent

The Employer Incentive Scheme (EIS) intends to encourage employers to engage injured veterans who have found it difficult to compete in a tight labour market.

Background

DVA's whole-of-person approach to rehabilitation is underpinned by compelling evidence about the health benefits of good work. Good work is defined as work that is safe, enables the person to be productive and engaged and provides economic stability and personal interaction.

EIS is a vocational rehabilitation approach to assist eligible veterans to find suitable and sustainable civilian work. Payment of wage subsidies are a long-standing feature of employment programs in Australia to encourage eligible businesses to hire eligible jobseekers for ongoing employment.

Eligibility

Veterans commencing, or participating in a DVA rehabilitation program, with an assessed vocational need, are eligible for the EIS if they are:

  • unable to return to their previous employer;
  • able to work within the advice of capacity obtained from the treating doctor; and
  • in receipt of incapacity benefits from DVA at the time of their initial employment.

Employers are eligible for the EIS if:

  • they have not previously employed the veteran - previous participation in a work trial with the employer is acceptable;
  • they have not previously received an EIS payment for the person;
  • they are not an Australian Government, state/territory government entity*;
  • their place of employment meets the necessary work health and safety standards;
  • they do not unreasonably dismiss other workers to create vacancies for workers available with incentives;
  • they can provide ongoing full or part time paid employment or an apprenticeship or traineeship for the worker;
  • the role is not a self-employment or a subcontracted position; and
  • the employer is not an immediate family member of the veteran – this includes the spouse, partner, child, parent, grandparent, grandchild or sibling of the veteran.

The EIS is only available to employers that are offering employment based in Australia.

*Note: A local government entity can be an eligible EIS employer, provided the employment position is not funded by an Australian state or territory government.

Requirements

Incentive payments can only be paid to a veteran's employer when:

  • participation in the EIS is an approved activity in the veteran’s vocational rehabilitation plan;
  • a rehabilitation provider has been engaged to ensure that the employment is safe and suitable, given the veteran's medical restrictions and the type of work they will be undertaking, and to monitor progress of their participation in the scheme;
  • the veteran's DVA Rehabilitation Delegate has approved participation in the scheme prior to employment commencing;
  • the employer is paying the veteran full award wages at a salary rate comparable to other employees doing similar work for the organisation/employer; and
  • the veteran's incapacity payments have been ceased or reduced in accordance with the new earnings.
Participation must be pre-approved

Initially, the veteran’s rehabilitation provider will discuss the EIS proposal with the veteran and prospective employer. The employer must provide details of the offer of employment including gross wages, hours of employment, duties and conditions of employment.

EIS participation must be approved by a DVA Rehabilitation Delegate before employment commences. As a general rule, the Delegate must be satisfied that EIS participation is likely to lead to sustainable, ongoing employment for the veteran.

Once approved, the DVA Rehabilitation Delegate will:

  • advise the employer via an EIS offer letter detailing the requirements to receive reimbursement of wage subsidies; and
  • notify the rehabilitation provider of DVA’s expectations in relation to monitoring the veteran’s employment.
Employer incentives payable

The employer incentives are only payable after the employer has paid the veteran employee, and are payable on the following basis:

  • reimbursement of 75% of gross wages* for the first three months of employment;
  • reimbursement of 40% of gross wages* for the second three months of employment; and
  • a retention bonus of 10% of annual gross wages* (up to a maximum of $2000) if the employment is sustained beyond 12 months.

*Gross wages exclude allowances, overtime, superannuation, commissions and any compensation payments.

Applications for incentive payments

The incentive payments are paid to the employer, as wages reimbursement and a retention bonus. Employers must use DVA Form D1224 Claim for reimbursement under the Employer Incentive Scheme to claim the incentive payments. This form is provided to the employer, together with the EIS offer letter, at the beginning of the employment period.

Employers should forward claims for incentive payments at these time periods after the employment commenced:

  • at the conclusion of three months;
  • at the conclusion of six months (the second three months’ period); and
  • after twelve months has elapsed.
Ongoing monitoring

The veteran’s placement must be monitored by the veteran’s rehabilitation provider for a reasonable time period, i.e. until the DVA Rehabilitation Delegate is satisfied that no further monitoring of the veteran’s employment is necessary and there are no other rehabilitation activities that need to be considered or completed for the veteran.

Related Policies, Legislation and Information

Policy
Legislation
External websites

 

Source URL: https://clik.dva.gov.au/rehabilitation-policy-library/9-vocational-rehabilitation/910-employer-incentives

Last amended