Relevance of actual hours of employment
The number of actual hours for which the client is employed in a week is relevant to calculation of the amount of weekly incapacity compensation paid to the client after the first 45 weeks of incapacity. This is because s 19(3) of the SRC Act provides that an incapacitated client will receive an increased weekly payment if they actually undertake some employment activity in that week.
It is important to note that s 19(3), in its context, requires attention to the actual employment activities of the client, not to their employment status.
Note also that actual hours of employment per week cannot be deemed.
Section 19(3) was in the following form until 31 March 2002:
19(3)Subject to this Part, Comcare is liable to pay to the employee, in respect of the injury, for each week during which the employee is incapacitated, other than a week referred to in subsection (2), compensation:
(a)where the employee is not employed during that week - of an amount equal to 75% of his or her normal weekly earnings less the amount (if any) that he or she was able to earn during that week in suitable employment;
(b)where the employee is employed for 25% or less of his or her normal weekly hours during that week - of an amount that, when added to the amount that he or she was able to earn during that week in suitable employment, results in an amount equal to 80% of his or her normal weekly earnings;
(c)where the employee is employed for more than 25% but not more than 50% of his or her normal weekly hours during that week - of an amount that, when added to the amount that he or she was able to earn during that week in suitable employment, results in an amount equal to 85% of his or her normal weekly earnings;
(d)where the employee is employed for more than 50% but not more than 75% of his or her normal weekly hours during that week - of an amount that, when added to the amount that he or she was able to earn during that week in suitable employment, results in an amount equal to 90% of his or her normal weekly earnings;
(e)where the employee is employed for more than 75% but less than 100% of his or her normal weekly hours during that week - of an amount that, when added to the amount that he or she was able to earn during that week in suitable employment, results in an amount equal to 95% of his or her normal weekly earnings; and
(f)where the employee is employed for 100% of his or her normal weekly hours during that week - of an amount that, when added to the amount that he or she was able to earn during that week in suitable employment, results in an amount equal to 100% of his or her normal weekly earnings.
s 19(3) – on and after 1 April 2002
Section 19(3) was repealed and substituted on 1 April 2002 by the Safety, Rehabilitation and Compensation and Other Legislation Amendment Act 2001 with the new provision having the same general effect as the previous provision:
19(3) Subject to this Part, Comcare is liable to pay compensation to the employee, in respect of the injury, for each week during which the employee is incapacitated, other than a week referred to in subsection (2), of an amount calculated using the formula:
where:
adjustment percentage is a percentage equal to:
(a)if the employee is not employed during that week – 75%; or
(b)if the employee is employed for 25% or less of his or her normal weekly hours during that week – 80%; or
(c)if the employee is employed for more than 25% but not more than 50% of his or her normal weekly hours during that week – 85%; or
(d)if the employee is employed for more than 50% but not more than 75% of his or her normal weekly hours during that week – 90%; or
(e)if the employee is employed for more than 75% but less than 100% of his or her normal weekly hours during that week – 95%, or
(f)if the employee is employed for 100% of his or her normal weekly hours during that week – 100%.
AE applies in relation to the whole of that particular week and has the same meaning as in subsection (2).
NWE is the amount of the employee's normal weekly earnings.