A casual worker injured on the job wants full pay during their absence, but are they entitled to more than workers’ compensation? This question came through our workplace advice line. The answer all depends on the award.
Q. Our company operates in the motor vehicle servicing industry and recently had a casual employee who injured their hand while operating a piece of machinery. The employee was absent for two days receiving medical treatment and will receive workers' compensation for the period of their absence.
The employee has questioned the payment received through our workers' compensation insurer. The employee has claimed they would normally have worked 10 hours over the two days and should receive their ordinary casual rate for that time. It is our view that the employee receives workers' compensation for the period.
Can a casual employee claim compensation for possible lost wages beyond what is paid as workers' compensation?
A. The applicable modern award may provide an entitlement to accident pay, which is a weekly payment that is the difference between the weekly amount of compensation paid to an employee under workers’ compensation legislation and the employee’s weekly wage if the employee had been performing their normal duties. In this case, the applicable award would be the Vehicle Industry Repair Service and Retail Award 2010. Clause 22.14 refers to accident pay in relation to casual employees.
For a casual employee, the weekly payment is calculated using the employee’s average weekly ordinary hours with the employer over the previous 12 months or, if the employee has been employed for less than 12 months by the employer, the employee’s average weekly ordinary hours over the period of employment with the employer. The weekly payment will include casual loading but will not include over-award payments, shift loadings or overtime.
Not a standard provision in the award
Accident pay is not a ‘standard’ provision in modern awards and is only prescribed in approximately 16 modern awards. In the absence of a specific provision in the applicable modern award, there is no statutory requirement to pay accident pay.
Bottom line
A casual employee may have an entitlement to accident pay under the terms of the applicable modern award.