DECISION AND REASONS FOR DECISION [2002] AATA 852
ADMINISTRATIVE APPEALS TRIBUNAL )
) No N2002/256
GENERAL ADMINISTRATIVE DIVISION )
Re MARTIN WEST
Applicant
And TELSTRA CORPORATION LTD
Respondent
DECISION
Tribunal Ms N Bell, Member
Date27 September 2002
PlaceSydney
Decision The Tribunal sets aside the decision under review and in substitution therefor remits the matter to the Respondent to calculate the Applicant's normal weekly earnings in relation to, pursuant to section 8(5) of the Safety, Rehabilitation and Compensation Act 1988, a relevant period of the latest 12 months before the date of the Applicant's injury.
[SGD] Ms N Bell
Member
CATCHWORDS
COMPENSATION – method of calculation of normal weekly earnings – penalty allowances – fair representation of weekly rate of pay – correct "relevant period" prior to date of injury – 12 months
Safety, Rehabilitation and Compensation Act 1988 – ss. 8, 9
Re Zarb and Comcare (1997) 48 ALD 718
Re Zegura and Comcare (AAT 12740, 25 March 1998)
Re Zegura and Comcare (AAT 11555, 13 January 1997)
REASONS FOR DECISION
27 September 2002 Ms N Bell
This is an application by Mr Martin West ("the Applicant") for review of a decision by GIO for Telstra Corporation Ltd ("the Respondent") dated 14 January 2002, to determine the Applicant's compensation by calculating the Applicant's normal weekly earnings having regard to the Applicant's earnings for the period of 12 weeks prior to the Applicant's injury.
The decision under review arose out of a decision of the Tribunal dated 13 October 2000 which was in accordance with minutes of consent signed by the solicitors for both parties to the effect that the Respondent would pay the Applicant compensation for a closed period from 13 September 1999 to 10 October 2000.
The issue for the Tribunal to consider is the correct "relevant period" to which regard should be had by the Respondent in calculating the Applicant's normal weekly earnings. This involves consideration of the provisions of sections 8 and 9 of the Safety, Rehabilitation and Compensation Act 1988 ("the Act").
The Applicant was represented by Mr Leo Grey of Counsel and the Respondent was represented by Mr Brendan Kelly of Counsel. The following documentary evidence was before the Tribunal:
Exhibit Document Date
TD1 T-Documents T1-T72
TD2 T-Documents (N2000/343)
A1 Applicant's Group Certificate 1998-99
A2 Applicant's pay slips January 1999-September 1999
The Applicant says, in respect of the decision under review, that calculation by the Respondent of the Applicant's normal weekly earnings by reference to the Applicant's earnings for the period of 12 weeks prior to the date of injury is not a fair basis on which to make that calculation and that a fair basis on which to make the calculation would be by reference to the Applicant's earnings over a period of 12 months before the date of the Applicant's injury.
It is not in dispute that the Applicant suffered a condition of aggravation of major depression and anxiety, with the date of injury being 13 September 1999. It is…
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- Case
- [2002] AATA 852
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the tribunal was whether the respondent's method of calculating Mr West's normal weekly earnings adequately represented his earnings prior to his injury. Specifically, the tribunal had to determine whether the statutory definition of "relevant period" in section 9(1) of the Act required adherence to a strict two-week period or if a longer period could be considered under section 8(5) if it more accurately reflected the employee's earnings.
The tribunal found that the respondent had already determined to calculate the applicant's normal weekly earnings using a period of 12 weeks, rather than the statutory two weeks. The tribunal noted that while the statutory definition generally provides for a two-week period, it also allows for a longer period if it would more accurately represent the employee's earnings. Given the seasonal variations in Mr West's earnings, the tribunal held that a 12-week period would provide a fairer representation of his weekly rate of pay. Consequently, the tribunal set aside the decision under review and remitted the matter to the respondent to recalculate Mr West's normal weekly earnings based on a 12-month period.
The tribunal's decision emphasized the importance of accurately reflecting an employee's earnings when calculating compensation, particularly in cases involving significant seasonal variations. The tribunal directed the respondent to use a period that would fairly represent Mr West's earnings, ensuring that the compensation provided was just and appropriate.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
In reply Mr Grey noted that in the Applicant's case a long period of 13 months incapacity must be calculated and that that period involves significant seasonal variations. He also noted that this application involves no question of overtime.Consideration Section 8 of the Act provides relevantly:Normal weekly earnings8. (1) For the purposes of this Act, the normal weekly earnings of an employee (other than an employee referred to in subsection (2)) before an injury shall be calculated in relation to the relevant period under the formula: (NH x RP) + Awhere: NH is the average number of hours worked in each week by the employee in his or her employment during the relevant period; RP is the employee's average hourly ordinary time rate of pay during that period; and A is the average amount of any allowance payable to the employee in each week in respect of his or her employment during the relevant period, other than an allowance payable in respect of special expenses incurred, or likely to be incurred, by the employee in respect of that employment.(2) Where an employee is required to work overtime on a regular basis, the normal weekly earnings of the employee before an injury shall be the amount calculated in accordance with subsection (1) plus an additional amount calculated in relation to the relevant period under the formula: NH x ORwhere: NH is the average number of hours of overtime worked in each week by the employee in his or her employment during the relevant period; and OR is the employee's average hourly overtime rate of pay during that period.(3) Where an employee was, at the date of the injury, employed by the Commonwealth or a licensed corporation in part-time employment or unpaid employment, any earnings of the employee from any other employment shall, for the purposes of this section, be treated as earnings of the employee from his or her employment by the Commonwealth or the licensed corporation.(4) Where, because of the shortness of the relevant period, it is impracticable to calculate the normal weekly earnings of an employee before an injury under subsection (1) or (2), the normal weekly earnings of the employee before the date of injury shall be taken to be the normal weekly earnings before that date of another employee performing comparable work, being normal weekly earnings from employment by the Commonwealth or a licensed corporation and calculated under subsection (1) or (2), as the case requires.(5) Where, because of the shortness of the relevant period, the normal weekly earnings as calculated in relation to the relevant period under subsection (1) or (2) would not fairly represent the weekly rate at which the employee was being paid in respect of his or her employment before the injury, the normal weekly earnings before the date of the injury shall be calculated in relation to such other period as Comcare considers reasonable for the purpose of arriving at an amount that does fairly represent the weekly rate at which the employee was being so paid.