85Decision as to eligibility for compensation

85 Decision as to eligibility for compensation (1) Subject to subsection (10), an employer shall, on receiving a claim for compensation: (a) accept liability for the compensation; (b) defer accepting liability for the compensation; or (c) dispute liability for the compensation, and shall notify the person making the claim of the employer's decision within 10 working days after receiving the claim. (2) Where an employer accepts liability for the compensation claimed, the employer shall, in the case of a claim for weekly payments (whether or not other compensation is claimed), commence those payments within 3 working days after accepting liability. (3) Where a claim for compensation is for a lump-sum payment of compensation or for a benefit other than a weekly payment, the employer shall, where liability for the compensation claimed is accepted, make the payment or provide the benefit as soon as practicable after the claim is accepted.

Return to Work Act 1986 87 (4) Where an employer defers accepting liability for the compensation claimed: (a) the deferral shall remain in force for 56 days from the date the notification under subsection (1) is given or such longer period as the Court may allow unless, within that period, the employer notifies the person making the claim that the employer accepts or disputes liability for the compensation; (b) where the claim is for weekly payments (whether or not other compensation is claimed), the employer shall, within 3 working days of making the decision to defer accepting liability for the compensation claimed, commence those payments; and (c) if the claim is for weekly payments: (i) subject to subparagraph (ii), sections 75A(1) and 75B apply during the period of deferral to the employer and the worker as if the employer had accepted liability for the compensation claimed; and (ii) if the claim does not relate to an injury involving mental stress – the employer is not required to bear the expense, under section 75B, of either or both of the (A) hospitalisation (including surgery while the worker is hospitalised); (B) the worker travelling, or being transported, to and from any place outside the Territory for the purpose of hospitalisation. (5) Where an employer accepts or disputes liability for compensation under subsection (4)(a), the employer shall notify the person making the claim of the employer's decision. (6) Notification required to be given to a person under this section shall be in writing and given to the person by: (a) delivering it personally to the person; a person who has apparently attained the age of 16 years at the person's address as shown in the claim form given to or served on the employer under section 82; or

Return to Work Act 1986 88 (c) sending it in a properly addressed envelope by pre-paid post to the person at the person's address as shown in the claim form given or served on the employer under section 82, and notification shall be deemed given when the envelope is posted. (7) Where payments are made to a person under subsection (4)(b) or by virtue of subsection (4)(c), or where the employer pays the costs of a worker's reasonable rehabilitation treatment or training or workplace return to work programs before accepting liability for or being found liable to pay compensation, those payments: (a) are made on a without prejudice basis and are not, in any subsequent proceedings under this Act, to be construed as an admission of liability; (b) if they are made under subsection (4)(b) or by virtue of subsection (4)(c) – are to continue to be made until the employer under subsection (5) notifies the person making the claim of the employer's decision to accept or dispute liability for the compensation claimed; (c) are to be taken into account in determining the amount of the employer's liability under the claim, where liability is accepted or deemed accepted or an order for compensation is made; and (d) are not able to be recovered by the employer notwithstanding that the employer may not be liable under this Act to pay the compensation claimed, unless the Court otherwise orders because the Court has found that: (i) the worker or the person making the claim has acted dishonestly; or (ii) the claim was fraudulently made; or (iii) the worker or the person making the claim has obstructed or delayed the process for the employer's making the decision. (8) At the same time as an employer notifies a claimant under this section that the employer disputes liability for compensation claimed, the employer must give the claimant a statement in the approved form: (a) setting out the reasons for the employer's decision to dispute liability;