McDonald v North Coast Area Health Service

The case involved McDonald, an employee of North Coast Area Health Service, who sought compensation under the Workers Compensation Act 1987. The dispute centred around the worker's entitlement to weekly compensation following an injury sustained during employment. The matter was heard by the NSW Supreme Court.

The court was tasked with determining whether the Health Service had unreasonably rejected suitable employment offered by McDonald. Specifically, the court had to consider whether the employer's refusal to allow McDonald to return to work in a modified capacity was justified. The court also needed to assess whether McDonald's rejection of an alternative position was unreasonable under section 40(2A) of the Workers Compensation Act 1987.

The court found that the employer had not unreasonably rejected McDonald's offer to return to work in a modified capacity. However, the court determined that the Arbitrator had erred in concluding that McDonald's rejection of the alternative employment was unreasonable. The court held that McDonald's decision to decline the alternative position was not unreasonable given the circumstances. As a result, the court revoked the Arbitrator's determination and remitted the question of McDonald's entitlement to weekly compensation to a different arbitrator for re-determination.

The court's orders included revoking paragraph 1 of the Arbitrator’s determination of 9 February 2009 and remitting the question of McDonald's entitlement to weekly compensation from 18 November 2007 to date and continuing to a different arbitrator for re-determination in accordance with the court's reasons.