Farrell v Metromix Pty Ltd

The appeal in *Farrell v Metromix Pty Ltd* concerned the exercise of discretion under section 40(1) of the *Workers Compensation Act 1987* (NSW). The dispute arose from a decision regarding the appellant worker's entitlement to weekly compensation payments.

The primary legal issue before the Court of Appeal was whether non-injury factors could be taken into account when determining a worker's loss of earning capacity for the purposes of section 40(1) of the Act.

The Court of Appeal held that the Compensation Court had erred in its approach. It reasoned that while section 40(1) requires an assessment of loss of earning capacity, this assessment must be based on the injury sustained. Non-injury factors, such as the worker's personal circumstances or the availability of suitable employment in the general labour market, could not be the sole or primary basis for determining the extent of that loss. The court allowed the appeal, setting aside the original award of weekly compensation. It substituted an award of $75 per week for a specified period and remitted the question of future weekly compensation to the Compensation Court for redetermination.