For an employee who has been made voluntarily redundant and had a reduced work capacity at the end of the separation, liability to pay partial incapacity payments will usually continue.
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Example |
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An employee is redeployed into a permanent part time position as a result of her compensable condition. She continues to receive partial compensation payments. |
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The employee accepts a redundancy package, but will still be entitled to ongoing compensation payments, having regard to her NWE, deemed ability to earn (based on her actual earnings prior to separation as adjusted) and redundancy pay out. |
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Compensation payments would alter only where there is a change to the compensable condition, or the employee is offered or secures suitable employment which pays more than her pre-redundancy position. |
Less simple are those situations where the employee is in the middle of a graduated return to work as part of a Return to Work Plan (RTWP).
It is critical that both the claims and state office rehabilitation manager become involved with any discussions about redundancy of employees who are in this situation.
The employer should be discouraged from considering redundancy in such cases. Any return to work process can be seriously undermined, with the employee not provided with an opportunity to reach a pre-injury work status and the employer incurring ongoing costs for incapacity.
Liability does not cease simply because an employee severs his or her ties with the employer.
However, should this situation occur, assessment of what the employee is capable of earning at the time of redundancy will be required. Current medical evidence will also be pertinent.
It must be ensured that, once the initial decision has been made about what the employee's entitlement will be, ongoing reviews of the capacity to earn in suitable employment are actively managed.
It is possible that the employee's ability to earn will increase as he or she recovers from the compensable injury, and deeming provisions may need to be considered.