Following the Workers Compensation Commission decision in Sabanayagam v St George Bank Ltd [2016], any cessation of weekly compensation payments must now be issued via a Work Capacity Decision (WCD). As WCDs require a legislated 3?month process, businesses face added wage costs that flow into workers’ compensation premiums for the next three renewals. Timely, effective claim management, including specialist input, has become increasingly critical
Effective immediately, any decision to cease a Worker’s weekly compensation payments must be issued as a Work Capacity Decision. This applies to disputes previously managed under section 33 with section 54 or 74 notices, including cases where:
- the workplace injury is deemed resolved, and/or
- the Worker is no longer incapacitated due to the injury
What does this mean?
• Insurers/agents can no longer issue section 74 or section 54(2)(b) notices to cease weekly compensation payments where liability for the injury has been accepted. Section 74 notices may still be issued when:
the dispute does not concern ongoing weekly payments (e.g. treatment expenses, permanent impairment compensation).
the injury itself is disputed (e.g. under section 4 and/or 9A of the 1987 Act), and/or
For a detailed review please refer to the following document from our specialist workers compensation legal provider Gillis Delaney Lawyers: