The Effects Of Imprisonment

Section 23 (2) states:

“Compensation is not payable under section 19, 20, 21 or 21A in respect of any period during which the employee is imprisoned in connection with his or her conviction of an offence.”

The subsection applies only in the case of conviction - payments do not cease where the employee is simply on remand or parole (provided medical evidence indicates an inability to earn continues to be the result of the compensable condition).

An employee must be:

• convicted of an offence; and

• imprisoned in connection with that offence;

for payment of incapacity to be cease.

Employees on remand in jail will retain entitlements to incapacity until the date of conviction.

The 'Cease/Suspend Claim' (CSUS.CM) function provides a general screen where all cessations and suspensions of partial or full liability for a claim may be undertaken.

In this instance, the function would be used to suspend liability for incapacity, as the Act only specifies that incapacity payments are to be suspended while the employee is imprisoned.  Medical and other benefits will continue to be payable as normal.

'S'uspended will need to be entered in the 'Cease/Susp' field, 'I'ncapacity in the 'Incap/Liab' field, and a reason selected why the claim is being suspended.

Using the prompt facility (F4 function key), only one code will be displayed:

INCEmployee in jail

Select this code.  This will ensure an appropriate PRACSYS letter is sent.  A paragraph corresponding to the 'INC' code will automatically be inserted into the standard letter sent out advising of suspension of the claim.

After selecting the reason code, enter an 'Effective from' date.  This is the date from which benefits will be suspended.  At this stage, the 'Effective to' date is probably not known, so this can be left blank until there is a date to add.

Once the employee leaves prison, add the 'Effective to' date, making sure that the suspension status is left as 'A'ctive.  This will ensure any possible incapacity claims continue to be left unpaid between the 'from' and 'to' dates.