Page 3446 - Week 12 - Tuesday, 11 October 1994
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12 weeks, there is immediate termination; on payments between 12 weeks and 12 months, two weeks' notification; and on payments in excess of 12 months, six weeks' notification. A worker can dispute this process through the review of weekly payments at the Compensation Court. That is the situation in New South Wales. In Victoria the employer can terminate the worker's payments after 14 days' notice if incapacitated for less than 12 months, or 28 days' notice if incapacitated for more than 12 months. Once again, the worker can appeal the decision through the higher courts. Madam Speaker, my amendment brings the ACT into some sort of mutual recognition with the States. Ms Szuty stood up in this place not 15 minutes ago and quite correctly said that currently the Commonwealth, through the study by the Industry Commission, is looking at uniformity in workers compensation provisions. I suggest to the Assembly that this amendment of mine will give a true termination provision per se. The provision in the Act, as it stands, is, in my opinion and the opinion of the Opposition, really a Clayton's termination, because it is saying that, on the one hand, it is okay to terminate within 12 months but, on the other, it is not okay to terminate after 12 months.
I accept the fact that the Minister has given his assurance that this legislation is going to be reviewed, but what I am suggesting that the Assembly should consider is: If we are really fair dinkum about getting mutual recognition processes through the Australian parliaments, especially here in the ACT, let us now look very carefully at making sure that we are in line with what is happening in other States and Territories. I would be very anxious to see what is happening in Comcare under the Commonwealth scheme, too, because I feel sure - in fact, I am very confident - that there is no such provision of limiting termination to 12 months in the Comcare scheme. Therefore, what that reflects is that in relation to 46 per cent of workers in the ACT the employer, the Commonwealth, is able to terminate without the restriction of the 12 months period; yet, as Mr Lamont quite correctly said, 54 per cent of workers are not subject to a true termination provision.
The amendment removing the 12 months requirement will give the Bill some meaning and will be consistent with those other provisions and amendments proposed regarding the lodging of claims and actions and decisions to be made by exempt employers and insurers. The vast majority of claims are paid relatively promptly, notwithstanding the possible complications explained. It should be appreciated that the smallness of the premium pool means that there is not the capacity to sustain the unnecessary haemorrhage of funds. Where these costs are borne by exempt employers, they must be reflected in prices, as must any adverse effect on premiums for insured employers.
The amendments in the Bill in relation to termination do not impact on the vast majority of claimants. They do, however, bring back balance to the substantive legislation affected by the Barbaro case. There has been a long process of discussion between a range of parties that proved inconclusive, as the Minister said; and there was no concurrence to the requirement of the 12 months benefit provision. However, it is understood that the eight weeks notice period did ultimately receive some support. I am not suggesting that that support was unanimous. This was based on the proposition that it allowed a worker to take all the steps necessary to return to work, find alternative work, or obtain social security benefits for either unemployment or sickness. Furthermore, such a generous period - as I have outlined, it is more generous than that in any other jurisdiction in the country - would allow adequate time for consultation with the worker's union or solicitor.
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