New South Wales Consolidated Acts

WORKERS COMPENSATION ACT 1987 - SECT 54

54 Notice required before termination or reduction of payment of weekly compensation

(cf former s 54A)

(1) If a worker:

(a) has received weekly payments of compensation for a continuous period of at least 12 weeks, and

(b) has provided the worker’s employer, or the employer’s insurer, with a certificate by a medical practitioner specifying the expected duration of the worker’s incapacity,

the person paying the compensation shall not discontinue payment, or reduce the amount, of the compensation during the period of incapacity so specified without giving the worker the prescribed period of notice of intention to discontinue payment of the compensation or to reduce the amount of the compensation.

Maximum penalty: 50 penalty units.

(2) If the payment of compensation to a worker is discontinued, or the amount of compensation is reduced, by a person in circumstances involving the commission by that person of an offence under subsection (1), the worker may, whether or not that person has been prosecuted for the offence, recover from the person an amount of compensation that:

(a) if no period of notice has been given-is equal to the amount of compensation, or additional compensation, that would have been payable during the prescribed period of notice if payment of the compensation had not been discontinued or if the amount of compensation had not been reduced, or

(b) if less than the prescribed period of notice has been given-is equal to the amount of compensation that would have been payable during the balance of the prescribed period of notice if payment of the compensation had not been discontinued or if the amount of the compensation had not been reduced.

(3) The prescribed period of notice referred to in this section is:

(a) if the worker has been receiving weekly payments of compensation for a continuous period of at least 12 weeks but less than 1 year-2 weeks, or

(b) if the worker has been receiving weekly payments of compensation for a continuous period of 1 year or more-6 weeks.

(4) The notice referred to in this section shall:

(a) be given to the worker personally or by post, and

(b) if the regulations so require, be in such form (or contain such information) as may be prescribed by the regulations.

(5) This section is subject to section 58.

(6) This section does not apply to a reduction in weekly compensation as a result only of the application of different rates of compensation after the expiration of earlier periods of incapacity for which higher rates were payable (whether under section 38 or otherwise).

(7) The notice referred to in this section is to include information about the possible entitlements of the injured worker under section 38 and the requirements for the worker to obtain those entitlements if:

(a) the notice relates to a reduction in the amount of the worker’s weekly compensation as a result of the application of section 40, and

(b) the injured worker is not in receipt of earnings, and

(c) the information has not been supplied to the worker under section 40A.

The giving of that information does not constitute an admission of liability by an employer or insurer under this Act or independently of this Act.

(8) Before giving a notice under this section, an insurer must carry out an internal review of the decision to give the notice.