Section 12(1A) of the 1930 Act allowed permanent impairment payments in terms of LOEU only if there were finite periods of incapacity for work. It did not allow such payments if there was total and permanent incapacity for work as a result of the relevant impairment.

There was a penalty for any such PI payment: compensation for incapacity resulting from the relevant impairment ceased on payment for PI and no incapacity payments in relation to that condition was allowed in the future. Note however, that this effect has not transferred through to the current Act. Receipt of a transitional PI payment has no effect on incapacity payments for periods of incapacity after 1 December 1988.