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20.28.6 Effect on other/future compensation entitlement


Payment of a lump sum redemption under either Section 30 or Section 137 of the SRCA does not affect any entitlements (other than for incapacity for work) which the injured 'employee' or 'former employee' may have under the SRCA. Section 31 of the SRCA allows for the resumption of weekly incapacity benefits, where at any time after a lump sum redemption is paid under Section 30, the injury results in the employee's becoming incapacitated for work to the extent that the employee is not able to engage in any suitable employment at all, and the incapacity is likely to continue indefinitely i.e. is permanent.

In such circumstances, there is liability to pay compensation for the period of incapacity at the rate that would have been payable under Section 19, 20, 21 or 21A less the amount per week that was redeemed at the date of the determination. Delegates should note that:

  • weekly payments which are recommenced under Section 31 cannot be redeemed
  • a 'former employee' whose weekly incapacity benefits are redeemed under Section 137 cannot be entitled to a resumption of weekly incapacity benefits in the event of a worsening of the degree of his/her incapacity for work
  • a client who received in effect a redemption under the 1930 or 1971 Acts, who is not a 'former employee' can resume payments under the terms of S31 (S125(2) refers).