Generally, where an employee is totally incapacitated and elects to take a redundancy, incapacity payments are still applicable.
This is because the medical evidence on the claim establishes there is no ability to earn. Acceptance of a redundancy does not affect the entitlement.
However, the section under which the employee is being paid will need to be altered from 19 to 20 - 21A, having regard to the redundancy money received.
Regular review of the claim will also be required to establish the current status of the employee's capacity to earn in suitable employment.
As with employees with a reduced work capacity, employers should be discouraged from considering redundancy when an employee is totally incapacitated for work.
Any return to work process is negated, the employee is not provided with an opportunity to reach pre-injury work status and the employer continues to incur ongoing costs for incapacity.
Again, liability does not cease because an employee severs his or her ties with the employer.