There will be cases where the Commonwealth no longer employs an employee and his or her earnings are not constant.
|
Example |
|
An employee secures work which is on a casual, on call basis. Hours of work, and thus earnings, vary from week to week. |
This situation does not mean that determination of entitlements is calculated week by week. What must be established is:
-
suitable employment; and
-
the loss in earning capacity because of the compensable condition (not work availability).
It may be equitable and administratively appropriate to establish a constant AE figure (which must be periodically reviewed) and apply that for a certain period.
If it is decided to take this approach, establishing a constant AE figure may be done in one of two ways, depending on the circumstances of the case:
-
averaging earnings and hours over a specific period (based on tax returns); or
-
applying the appropriate industrial award rate of pay for the particular type of employment.