Under the SRC Act, normal weekly hours (NWH) are required to determine the percentage of normal weekly earnings (NWE) payable under s 19(3), ie. the rate compensation payable for periods of incapacity after the expiry of the first 45 weeks of incapacity.
Under s 19(3), the rate of compensation payable is, in part, determined by the % of NWH worked in a week. A greater % of NWH worked means a greater % NWE (minus AE) is payable, rising to (where the full NWH are worked) 100% of NWE minus AE.
The normal weekly hours for which the client is employed is relevant to the operation of s 19(3)(b)-(f). These subsections provide for a higher rate of total earnings (earnings from employment plus compensation) where the client is engaged in actual hours of employment during a week. The relationship between actual hours and normal hours of employment are shown in the following Table.
|
Actual employment |
Total weekly earnings |
|
(a) not employed |
75% of NWE |
|
(b) < 25% of NWH |
80% of NWE |
|
(c) > 25%, < 50% of NWH |
85% of NWE |
|
(d) > 50%, < 75% of NWH |
90% of NWE |
|
(e) > 75%, < 100% of NWH |
95 % of NWE |
|
(f) 100% of NWH |
100% of NWE |
[NWH = normal weekly hours; NWE = normal weekly earnings]
The intent of s 19(3) is to provide a financial reward, or incentive, for a return to full working hours by a client. This concept fits well with the primary RTW goal in the administration of the Act of a return to “same employer, same duties” and to pre-injury NWH.