EG Green and Sons Pty Ltd v Sabourne

EG Green and Sons Pty Ltd appealed against a decision of the Commissioner for Workers' Compensation in New South Wales. The dispute centred around whether certain payments, known as 'overtally' payments, should be included in the calculation of weekly earnings for the purpose of assessing compensation payments. The appellant argued that these payments should not be considered as part of the weekly earnings, whereas the Commissioner ruled that they should be included. The case was heard in the Court of Appeal of the Supreme Court of New South Wales.

The central legal issue was the interpretation of the term 'weekly earnings' as defined in the Workers Compensation Act 1987. The appellant contended that 'weekly earnings' should only encompass payments made as a result of the employment relationship, excluding any additional payments such as the 'overtally' payments. In contrast, the Commissioner argued that the term should be interpreted broadly to include all payments made to the employee by the employer, regardless of the source or purpose of the payment. The court was required to determine the correct interpretation of 'weekly earnings' and whether the Commissioner's decision to include the 'overtally' payments was legally sound.

The Court of Appeal held that the term 'weekly earnings' should be interpreted broadly to include all payments made by the employer to the employee. The court found that the inclusion of the 'overtally' payments was consistent with the legislative intent to provide comprehensive compensation to injured workers. The court rejected the appellant's argument that the 'overtally' payments should be excluded from the calculation of weekly earnings, as they were still payments made by the employer to the employee as part of their employment. Consequently, the appeals were dismissed, and leave to appeal was granted to the High Court of Australia.