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SAFETY, REHABILITATION AND COMPENSATION (DEFENCE-RELATED CLAIMS) ACT 1988 - SECT 8

Normal weekly earnings

  (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:

    Start formula open bracket NH times RP close bracket plus A end formula

where:

"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:

    Start formula NH times OR end formula

where:

"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 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.

  (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 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 the MRCC 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.

  (6)   Subject to this section, if the minimum amount per week payable to an employee in respect of his or her employment by the Commonwealth at the date of the injury is increased, or would have been increased if the employee had continued in that employment, because of:

  (a)   the attainment by the employee of a particular age;

  (b)   the completion by the employee of a particular period of service; or

  (c)   the receipt by the employee of an increase in salary, wages or pay by way of an increment in a range of salary, wages or pay applicable to the employee or to his or her office, position or appointment;

the normal weekly earnings of the employee before the injury, as calculated under the preceding subsections, shall be increased by the same percentage as the percentage by which that minimum amount per week is increased, or would have been increased, as the case may be.

  (7)   Subject to this section, if:

  (a)   an employee continues to be employed by the Commonwealth after the date of an injury; and

  (b)   the minimum amount per week payable to the employee in respect of that employment is increased because of the promotion of the employee;

the normal weekly earnings of the employee before the injury, as calculated under the preceding subsections, shall be increased by the same percentage as the percentage by which that minimum amount per week is increased.

  (8)   Subject to this section, where:

  (a)   the employment of an employee is of a kind referred to in subsection   5(4) or subsection   (3) of this section; and

  (b)   the employee is not receiving earnings from any other employment at the date of the injury;

the normal weekly earnings of the employee before the injury shall be an amount determined by the MRCC to be the amount per week that the employee would have been able to earn at the date of the injury (including any amount in respect of overtime worked on a regular basis) if he or she had engaged in suitable paid employment.

  (9)   The normal weekly earnings of an employee before the date of the employee's injury, as calculated under the preceding subsections, must, while the employee continues to be employed by the Commonwealth, be increased or reduced by the relevant percentage.

  (9A)   For the purposes of subsection   (9), relevant percentage means the same percentage as the percentage of increase or reduction in the minimum amount per week payable in respect of employees included in a class of employees of which the employee was a member at the date of the injury as a result of:

  (a)   the operation of a law of the Commonwealth or of a State or Territory; or

  (b)   the making, alteration or operation of an award, order, determination or industrial agreement or the doing of any other act or thing, under such a law.

  (9B)   The normal weekly earnings of an employee before injury, as calculated under subsections   (1) to (8) and as increased or reduced under subsection   (9) must, if the employee has ceased, or ceases, to be employed by the Commonwealth, be further increased, with effect from each indexation date in relation to that cessation, by reference to the percentage of increase (if any) of an index that is prescribed for the purposes of this subsection over the year ending on the 31   December preceding each such indexation date.

  (9C)   For the purpose of subsection   (9B), the indexation date , in relation to a cessation of employment, is:

  (a)   the 1   July next following:

  (i)   the date on which this Act receives the Royal Assent; or

  (ii)   the date of that cessation of employment;

    whichever last occurs; and

  (b)   each subsequent 1   July.

  (9D)   For the purpose of subsection   (9B), the regulations may specify the manner of calculating the further increase referred to in that subsection by reference to the movement of the index that is prescribed for the purposes of that subsection.

  (9E)   The normal weekly earnings of an employee before an injury, as calculated under the preceding subsections, must, with effect from 1   July in each year, be further increased by the amount under subsection   (9F) if, in the 12 months immediately preceding that 1   July:

  (a)   there was no increase in those earnings under subsection   (6), (7) or (9); and

  (b)   there was no reduction in those earnings under subsection   (9).

  (9F)   If the normal weekly earnings of an employee before an injury must be increased because of subsection   (9E), the amount by which they are increased is the percentage of increase (if any) in the index prescribed by the regulations for the purposes of this subsection over the period of 12 months ending on the 31   December immediately before the relevant 1   July.

  (9G)   For the purposes of subsection   (9F), the regulations may specify the manner of calculating the further increase mentioned in that subsection by reference to the movement of the index that is prescribed for the purposes of that subsection.

  (10)   If the amount of the normal weekly earnings of an employee before an injury, as calculated under the preceding subsections, would exceed:

  (a)   where the employee continues to be employed by the Commonwealth--the amount per week of the earnings that the employee would receive if he or she were not incapacitated for work; or

  (b)   where the employee has ceased to be employed by the Commonwealth--whichever is the greater of the following amounts:

  (i)   the amount per week of the earnings that the employee would receive if he or she had continued to be employed by the Commonwealth in the employment in which he or she was engaged at the date of the injury;

  (ii)   the amount per week of the earnings that the employee would receive if he or she had continued to be employed by the Commonwealth in the employment in which he or she was engaged at the date on which the employment by the Commonwealth ceased;

the amount so calculated shall be reduced by the amount of the excess.



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