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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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