Normal weekly hours is relevant where incapacity compensation is being calculated in relation to a period after the first 45 weeks of incapacity under s 19(3). The amount of compensation paid is increased from the usual 75% of NWE if the client undertakes actual hours of Reserve employment during a particular week. The amount of the increase is calculated by reference to the number of actual hours of employment as a proportion of normal weekly hours. For Reservists, Reserve employment and civilian employment are combined in the calculation.
During the first 45 weeks of incapacity, compensation is paid at 100% of NWE under s 19(2)-(2D), making it unnecessary to compare actual hours of employment with normal weekly hours.
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.