78ASettlement by agreement

78A Settlement by agreement (1) As an alternative to being paid an amount, or all amounts, payable under this Act in respect of an injury, a claimant may enter into an agreement of one of the following types: (a) an agreement with the employer for payment of a lump sum; (b) an agreement with the employer for a structured settlement.

Return to Work Act 1986 79 (1A) However, an agreement purportedly entered into in accordance with subsection (1) is void if the agreement provides for an amount as settlement of all amounts payable for any of the following in relation to a person who has suffered a catastrophic injury: (a) medical treatment; (b) pharmaceutical treatment; (c) dental treatment; (d) ambulance transportation; (e) respite care; (f) attendant care services; (g) domestic assistance; (h) aids and appliances intended to assist a person to live a normal lifestyle, or to help prevent further injury or worsening of a health condition; (i) prosthetics, including limbs, eyes and teeth; (j) educational and vocational training; (k) home, transport and workplace modification; (l) a service or treatment prescribed by regulation. (2) If an agreement mentioned in subsection (1) becomes enforceable under this section, the claimant is not entitled to any future payments under this Act in respect of the injury to which the claimant's compensation relates. (3) An agreement relating to the payment of compensation, other than an agreement under this Division, or an agreement that is substantially in accordance with this Division and that is reached before a court, is void. (4) Before an agreement under subsection (1) is entered into, the following conditions must be met: (a) the employer must invite the claimant to obtain independent legal advice from a legal practitioner of the claimant's choice; (b) the employer must invite the claimant to obtain expert financial advice from a person of the claimant's choice who is qualified to give expert financial advice;

Return to Work Act 1986 80 (c) the claimant must confirm in writing to the employer that: (i) the claimant has received the advice mentioned in paragraph (a); and (ii) the claimant either has received the advice mentioned in paragraph (b) or does not elect to receive that advice. (4A) Whether or not an agreement is entered into, the employer must pay the reasonable costs of: (a) the legal practitioner who gave the legal advice; and (b) if the claimant elects to obtain expert financial advice – the person who gave that advice. (4B) Any agreement entered into is not enforceable until subsection (4A) is satisfied. (5) If an agreement mentioned in subsection (1), including an agreement in relation to a claim where liability is disputed by the employer, is entered into in respect of payments for a period that starts before 104 weeks after the claimant first becomes entitled to compensation: (a) the claimant may withdraw from the agreement at any time during the cooling-off period; and (b) the claimant may request further advice of the kind mentioned in subsection (4)(a) or (b), or both, at any time during the cooling-off period; and (c) the employer must pay the reasonable costs of that advice; and (d) if, after that advice is received, the claimant requests an amendment to the agreement – the agreement is subject to the amendment being made in a way that is acceptable to the claimant and the employer. (5A) If liability is disputed as mentioned in subsection (5), any payment under an agreement mentioned in subsection (1) made by the (a) is made on a "without prejudice" basis; and (b) is not taken to be an admission by the employer that the claimant has any entitlement to compensation in relation to an injury suffered by the claimant and to which the agreement relates; and