ARTICLE · 23 OCTOBER 2024

Worker's compensation NSW: work capacity decisions

Hall Payne Lawyers

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When are work capacity assessments required? What types of work capacity decisions are made? What must be considered?

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Under the Workers Compensation Act 1987, the insurer has the right to undertake a work capacity assessment in an injured worker's compensation claim. The purpose of a work capacity assessment is to determine what the injured worker's current capacity is to earn in suitable employment as a result of their workplace injury.

Upon the insurer carrying out its work capacity assessment, it has the right to issue a work capacity decision. Work capacity decisions can adversely affect an injured worker's ongoing entitlement to receive weekly compensation payments from the insurer.

When are work capacity assessments required?

Under section 44A of theWorkers Compensation Act1987 ("WC Act"), the insurer has the right to conduct a work capacity assessment and issue a work capacity decision every 2 years. This can happen at any stage of the worker's compensation claim.

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