External
Where an employee has been made voluntarily redundant and was capable of full time earnings when he or she left employment, this will generally preclude that employee from incapacity entitlements.
If the employee claims incapacity benefits after the date of severance, it will be the employee's responsibility to demonstrate that there has been a reduced capacity to earn following the redundancy. Evidence would need to show that there has been a recurrence or deterioration of the condition causing incapacity.
Sound medical evidence will be crucial to the investigation process.
If evidence does support that the compensable condition has reduced the employee's ability to perform pre-injury duties, the incapacity entitlement will need to be adjusted by incorporating a notional (able to earn but not in receipt of money) ability to earn figure into the incapacity calculation.