A decision made by Workers Compensation Commission Deputy President O’Grady in Sabanayagam v St George Bank Ltd [2016] on 21 January 2016 has resulted in important changes for NSW businesses. Effective immediately, any decision to cease a workers’ weekly payments of compensation need to be communicated via a Work Capacity Decision (WCD).
This decision is important as it effectively means a legislated 3 month period is required for the WCD to be completed. In context of the 30 June 2015 changes and therefore under the new NSW workers compensation premium formula, it means the additional wage costs will impact a business’ workers compensation premium for the following 3 premium renewals. As a result it is will be increasingly important to ensure all claims are managed in a timely and effective manner. Use of specialists to expedite outcomes will assist businesses in minimising the people, business and financial costs.
Work Capacity Decisions – key notes as follows:
As a result of this decision effective immediately, any decision made to cease a Worker’s weekly payments of compensation will need to be communicated by way of a Work Capacity Decision. This includes disputes we would normally make under section 33 using a section 54 or section 74 notice, such as:
o Where we determine the effects of a workplace Injury have resolved; and/or
o Where we determine the Worker is no longer incapacitated for work as a result of the Injury.
What does this mean?
• Insurers/agents can no longer issue a section 74 or section 54(2)(b) notices to cease ongoing weekly payments of compensation where we have previously accepted liability for the Injury
• Section 74 notices may be issued where:
o Injury is in dispute (e.g. pursuant to section 4 and/or 9A of the 1987 Act) and/or
o Where we are disputing something that is not related to ongoing weekly payments of compensation (e.g. treatment related expenses, permanent impairment compensation).
For a detailed review please refer to the following document from our specialist workers compensation legal provider Gillis Delaney Lawyers: