004_ACC_April_2016
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Employer<br />
‘Employer’ means:<br />
a person who pays, or is liable to pay—<br />
• any amount that, in relation to any other<br />
person, is treated as income from employment,<br />
as defined in paragraph (a) of the definition<br />
of income from employment in section<br />
OB 1 of the Income Tax Act 1994; and<br />
• any salary, wages or other gross<br />
income to which section OB 2(2) of the<br />
Income Tax Act 1994 applies; but<br />
• does not include, for the purpose of Part 6 of the<br />
Accident Compensation Act, (‘Management of<br />
the Scheme’), a person who is an employer solely<br />
by reason of any of paragraphs (f), (g), (h), (i), (ia),<br />
(ib), or (iba) of the definition of salary or wages<br />
in section OB 1 of the Income Tax Act 1994.<br />
(In other words, the employer is not required to pay<br />
the employee’s tax on earnings-related compensation<br />
payments (other than first week compensation) or<br />
any other compensation payment made to an injured<br />
employee. The exception is where an employer has<br />
entered into an agreement with the Corporation to<br />
provide injured employees with their entitlements.<br />
This can be done either by becoming an accredited<br />
employer or by entering into a reimbursement<br />
agreement which means that the employer pays<br />
compensation entitlements to the injured employee<br />
and is reimbursed by the Corporation.)<br />
Incapacity<br />
For the purposes of determining incapacity,<br />
incapacity means:<br />
• in the case of an earner or someone on<br />
unpaid parental leave, determining whether<br />
that person is unable, because of injury, to<br />
engage in employment in which he or she<br />
was employed when the injury was suffered.<br />
The Corporation must also determine the incapacity<br />
for employment of someone deemed still to be<br />
an employee, because he or she was an employee<br />
within 14 days before incapacity commenced<br />
and would have been an employee within three<br />
months (or 12 months if a seasonal employee—<br />
confirmation required from the employer), is a<br />
potential employee, or has purchased the right to<br />
receive weekly compensation.<br />
Personal injury<br />
Personal injury means:<br />
•death; <br />
• physical injuries, including a strain or sprain;<br />
• mental injury suffered by someone as a<br />
consequence of his or her physical injuries;<br />
• mental injury caused by a criminal<br />
act (set out in the Act’s Schedule 3<br />
and generally of a sexual nature);<br />
• work-related mental injury that is suffered<br />
by a person in certain circumstances (see<br />
under ‘Work—related mental injury’ above);<br />
• damage, (other than wear and tear) to<br />
dentures or prostheses (such as artificial limbs)<br />
that replace a part of the human body.<br />
• from 1 July 2010, any degree of hearing loss<br />
that is 6 per cent or more of binaural hearing<br />
loss caused by a personal injury as a result of:<br />
an accident to the person; a treatment injury; a<br />
consequence of treatment given to the person<br />
for another personal injury for which the person<br />
has cover; a personal injury caused by a workrelated<br />
gradual process disease or infection; a<br />
consequence of treatment given for a personal<br />
injury caused by a work- related gradual process<br />
disease or infection for which the person has<br />
cover; a cardio-vascular or cerebro- vascular<br />
episode that is a treatment injury suffered<br />
by the person; or a personal injury that is a<br />
cardio-vascular or cerebro- vascular episode.<br />
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