Date amended:
7.8.1 Legislation
Normal weekly hours (NWH) are defined in the SRCA as the number of normal weekly hours worked by the employee (person) before his or her incapacity.
Normal Weekly Hours (NWH) are defined in subsection 132(2) of the MRCA and section 158 for part-time reservists.
7.8.2 45 weeks and Normal Weekly Hours ('NWH')
After 45 weeks, the normal weekly hours (NWH) worked by a person in a week is relevant to the amount of incapacity compensation received for that week. Where a person is actually employed for part or all of a week, their payment is increased according to a scale set out in S19(3) of the SRCA or 131 of the MRCA based on the number of actual hours worked as a percentage of normal weekly hours.
During the first 45 weeks of incapacity, compensation is paid at 100% of NWE/NE, making it unnecessary to compare actual hours of employment with normal weekly hours.
7.8.3 SRCA Normal Weekly Hours
NWH (as defined in S4) is based on average number of hours the person worked during the relevant period used to derive the person’s NWE. The relevant period is taken to be the 'latest period of 2 weeks before the date of the injury'.
There are no 'standard' working hours as a condition of service for members of the ADF. The default NWH of 36.75 hours per week is a standard derived from the APS.
Where NWE for a Reservist is based on 7 x the Reserve daily rate (plus allowances), NWH is set at 36.75 hours. Similarly if the person’s civilian component of NWE has been deemed, NWH is set at 36.75 hours.
7.8.4 MRCA Normal Weekly Hours
NWH is defined in section 132 and is dependent on the person’s type of service before ceasing to be a member.
Where NE is based on permanent forces ADF pay, NWH are set at 37.5 hours per week. Where NE is based on CTFS or Reserve service NWH is based on an average of the hours the person worked during the example period used to derive the person’s NE.
Where NE for a Reservist is based on 7 x the Reserve daily rate (plus allowances), NWH is set at 37.5 hours.
7.8.4.1 Reserve service hours
The ADF Pay and Conditions Manual (PACMAN) states that members of the Reserve Forces on Reserve service, apart from those officers who hold special appointments, shall be credited with pay as follows:
for a period of not less than six hours – one day's pay
for a period of less than six hours but not less than three hours – one-half day's pay
for a period of less than three hours but not less than two hours – one-third day's pay, and
for a period of not less than one hour but less than two hours – one-sixth day's pay.
7.8.4.2 ExampleExample 1 – Calculating Reserve Normal Weekly HoursReserve NWH = (6 hrs x Annual Parades) x 6/313 Annual Parades = the number of parades attended during the past 12 months Example – NWH for a member who attended 70 parades: (where each parade is not less than 6 hours) = (6 x 70) x 6/313 = 420 x 6/313 Reserve NWH = 8.05 hours Civilian NWH = 36.75 hours TOTAL NWH = 44.8 hours |
7.8.5 Normal Weekly Hours should not be adjusted
There is no discretion to vary a person’s NWH through the life of a claim. NWH is based on the hours the person was working during the relevant/example period that gives rise to their NWE or NE (the case of Comcare v Heffernan [2011] FCAFC 131 refers).
7.8.6 5 or 7 day week
Current full-time serving members of the ADF will have their incapacity payments calculated on a 7-day week. All part-time serving members and former members, including Cadets and Declared members, have their incapacity payments calculated on a 5-day week.