Taking an average of earnings

By averaging earnings, a predetermined period must be selected which reasonably reflects the employee's ability to earn.

The period of earnings must be decided having regard to the circumstances of the case and the average should be reviewed at the end of each set period having regard to:

• the earnings during that period; and

• the reason (medical or otherwise) for that level of earnings.

This approach simplifies the compensation payment process.  However, the employee should be clearly advised that he or she will be receiving an average weekly payment for the period until earnings are next reviewed, and the basis on which the average was calculated.