Seagoing Allowance and Other Disability Allowances

Seagoing Allowance and Other Disability Allowances

While Seagoing Allowance can be characterised as a “disability allowance”, it is included in NWE on the basis described in DCA 85 (which amended the policy approach taken in DCA 78).  In general terms, Seagoing Allowance should be included in NWE for the period that the client's sea posting would have continued.  a similar approach applies to other disability allowances (listed in the Table).

DCA 85 - Full Text

DCA 85 states:

1.The purpose of this DCA is to amend the policy outline in DCA No. 78 concerning payment of compensation for loss of seagoing allowance.

2.Delegates will recall that seagoing allowance is paid by Navy to compensate members for the particularly uncomfortable conditions encountered in seagoing ships, the inability of members to use their leisure time effectively, the exceptionally long hours worked at sea and the almost complete cutting off of home contacts.

3.On review of existing policy, it would appear appropriate to compensate members for loss of seagoing allowance in limited circumstances.  An example is provided at attachment A.

4.Delegates should be aware of possible reductions in the amount of seagoing allowance payable by Navy to members resulting from ship refits.  The onus of notifying the MCR section of changes to individuals' circumstances rests with the member/claimant.  Where delegates become aware of such changed circumstances, compensation granted for lost seagoing allowance should be reviewed and adjusted where necessary.

5.Other disability allowances such as arduous conditions allowance, field allowance and district allowance are to be treated in a similar manner to seagoing allowance.

6.Delegates are reminded that under no circumstances should lump sum payments be awarded to redeem future compensation “liability” for loss of seagoing or other disability allowances.

7.Managers and Team Leaders are requested to review all case in the light of the above.

Appendix A - EXAMPLE:

1.1 — A member commences a 12 month sea posting on 1 January 1995 and is due to return to a shore posting on 1 January 1996.  The member actually receives seagoing allowance of, say, $25 per week on top of his weekly salary of, say, $500.  On 25 January 1995, he sustains a compensable injury requiring him to terminate the sea posting immediately, resulting in cessation of seagoing allowance.  The member's normal salary whilst on shore is $500 per week.  The compensation payable in such a case is as follows:

Period 1:26 Jan 95 to 2 Dec 95 inclusive (ie. 1st 45 weeks)

NWE (at date of injury)=$525  (ie. $500 + $25)

AE=$500

SS19(2):=$525 - $500

Compensation Payable=$25 per week

Period 2:3 Dec 95 to 31 Dec 95 inclusive (ie. after 1st 45 weeks)

NWE=$525

AE=$500

SS19(3)(f):=$25

1.2 — The member's sea going posting was for 12 month duration only and he was due to commence a shore posting on 1 January 1996.  In other words, the member could not have expected to continue receiving seagoing allowance beyond 31 December 1995.

1.3 — Accordingly, by virtue of subsection 8(10), the member's NWE should be adjusted to reflect earnings he would have expected to receive, ie. $500 in his shore posting, “if not incapacitated for work”.

From 1 January 1996:

NWE of $500 equals AE of $500

Weekly Entitlement:NIL

1.4(NOTE: Where a member is medically discharged, any entitlement to seagoing allowance should be paid until the scheduled completion of the sea posting, even if this date surpasses the member's date of discharge.  At this time, the NWE should be adjusted for the reasons, and according to the method, described in 1.2 and 1.3 above.)