Following Receipt Of A Section 30 Redemption

“Subject to section 31, where a determination is made that an amount of compensation is payable to an employee under section 30 ... compensation is not payable to the employee under section 19, 20, 21 or 21A in respect of a period of incapacity for work ... being a period occurring after the day on which the determination is made.”  [section 23 (3)]

Compensation payments for incapacity cease the day after it is determined that a redemption is payable under section 30.  This is because redemption is a lump sum payment made in lieu of further incapacity payments.

Redemptions are based on a very low payment ceiling, where the employee normally is only partially incapacitated and earning a significant amount of his or her NEW, with compensation merely “topping up” earnings.

Section 23 (3) states that cessation of incapacity benefits is “subject to section 31”.

Section 31 allows for the resumption of weekly incapacity payments where it is demonstrated that an employee has once more become totally incapacitated.

However, section 31 does have regard to what has been paid out in the lump sum and this is taken into account with the entitlement reduced accordingly.

An employee should not be paid under section 19 where section 31 applies.  Payments should be made using section 31.