Partner, Mills Oakley
Working across all aspects of insurance law, Mark has expertise in workers’ compensation and employers’ indemnity, public and products liability, property damage, motor vehicle, occupiers’ liability and engineering and contract works claims. Mark’s advice is frequently sought in matters of statutory interpretation, policy indemnity issues, quantum for catastrophic claims and complex liability disputes. He acts for a range of insurers, self-insured corporations, insurance schemes and local and state government bodies. He has worked with LGIS for nearly two decades.
Pursuant to section 62 of the Workers Compensation & Injury Management Act 2023, an employer must not reduce, suspend or discontinue income compensation payments (formerly called ‘weekly payments’) to a worker except:
a) to give effect to any provision of this Act as to the calculation of the amount of compensation that is payable or any limit on the amount of compensation that is payable; or
b) to give effect to a direction of a conciliator or an order of an arbitrator; or
c) in accordance with section 63, 64, 65 or 66; or
d) with the written consent of the worker given in the approved form.
The sections referenced at subparagraph (c) relate to:
Section 63 – The worker has returned to work (meaning to the position they held before the injury, without restriction, or to a new position in paid employment with the same employer or a different employer).
Section 64 – The worker fails to lodge a dispute within 28 days of being served with a prescribed notice supported by medical opinion that they are fit to work or that their incapacity is no longer due to the injury.
Section 65 – The worker no longer resides in Western Australia and fails to provide the required declaration at the prescribed interval, despite receiving a warning notice to do so.
Section 66 – The worker is incarcerated in a prison or mental institution.
There are no other permitted circumstances. Employers will be in breach of the Act if a worker’s income compensation is interfered with for any other reason.
Congratulations to the Shire of Yilgarn who were award their Tier 3 Silver diligence in Safety Award. James Sheridan, CEO LGIS and Christ Gilmour, Risk Specialist – Regional visited the Shire on Tuesday 26 February to meet the Yilgarn team and present the award.
Stopping income compensation payments can be a tricky matter for LGIS members to determine. We’re aware there’s a growing number of local governments that have stopped payment when they shouldn’t have, leading to a large back pay bill and potential $10,000 fine from WorkCover WA.
Stopping income compensation payments can be a tricky matter for LGIS members to determine. We’re aware there’s a growing number of local governments that have stopped payment when they shouldn’t have, leading to a large back pay bill and potential $10,000 fine from WorkCover WA.
A common misconception is that income compensation can be stopped if a worker’s employment ends by:
This is not the case.
For example, a worker with plans to retire on their 67th birthday who suffers an injury on their last day of work could remain in receipt of income compensation for many years to come. The fact that they had no intention of ever working again is not a relevant consideration under the WA workers’ compensation scheme. The cessation of the employment is a matter that is totally irrelevant to the entitlements of an injured worker under the Act.
Another misconception is that a worker’s income compensation payments can be suspended with the worker’s consent while they take a period of annual leave or long service leave.
In an amendment to the prescribed form of consent (Form CN1) which will take effect on 1 July 2025, it is expressly stated that the worker’s consent cannot be sought to suspend their payments while they are on leave. This is to reinforce compliance with section 61 of the Act which makes it clear that a worker’s entitlement to income compensation shall not be affected by the worker taking annual or long service leave.
WorkCover WA devotes significant resources to regulating and investigating employers’ compliance with their obligations under the Act. An employer who stops or reduces a worker’s income compensation for any reason besides one of the permissible circumstances risks a penalty being imposed by WorkCover for breach of section 62 by fine of up to $10,000.
Unlawful cessation or reduction of payments often results in applications being made to WorkCover by injured workers and this gives rise to added legal costs for the employer, a liability to make back-payment in full of the income compensation that the worker did not receive, as well as the potential for reputational harm.
Bearing in mind these risks, considerable caution should be exercised before interfering with an injured worker’s income compensation to ensure that the Act expressly allows it. Before making a change to compensation payments make sure to talk to your LGIS WorkCare claims manager.
Before making a change to compensation payments make sure to talk to your LGIS WorkCare claims manager.
This year marks the significant milestone of the 30th anniversary of LGIS. It’s an opportunity to reflect on the remarkable journey we have undertaken together over the past three decades. Since our founding in 1995, LGIS has evolved from a practical response to emerging risks into a pioneering mutual scheme that proudly serves the diverse needs of Western Australia’s local governments.
1 July 2025 marked an historic moment for LGIS, on the same day 30 years ago that the Scheme launched. A lot has changed over that time, but the core purpose remains – local governments working together through a mutual to protect their people, organisations and communities.
Research from the BMC Public Health Journal conducted in 2024 indicated that 61.75% of truck drivers develop some form of musculoskeletal disorder (MSD) during their career. This alarming statistic will almost certainly be applicable to the wide range of roles undertaken by the local government sector throughout WA.
