Denise Tanner v Anthappi Pty Ltd (2000) NTMC 4Workers compensation - work health - return to work - unreasonable refusal.

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Denise Tanner v Anthappi Pty Ltd (2000) NTMC 4 Workers compensation - work health - return to work - unreasonable refusal.
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CITATION: Denise Tanner v Anthappi Pty Ltd (2000) NTMC 004

PARTIES: DENISE TANNER

v

ANTHAPPI PTY LTD

(formerly known as Normandy Gold Pty Ltd)

(ACN 007511006)

TITLE OF COURT: Work Health Court

JURISDICTION: Work Health Act

FILE NO(s): 9818294

DELIVERED ON: 21 January 2000

#DATE 21:1:2000

DELIVERED AT: Darwin

HEARING DATE(s): 1 November 1999 - 4 November 1999

JUDGMENT OF: Mr Daynor Trigg

CATCHWORDS:

Workers Compensation - Work Health - Return to Work - Unreasonable Refusal

Work Health Act: ss 69 (1), 69 (2), 75B (2) Words & phrases: "could", "unreasonably refuses". Collins Radio Construction Inc. v Day (1998)143 FLR 425, followed.

Disability Services of Central Australia v Regan NT Court of Appeal 31.7.98, followed.

Fazlic v Milingimbi Community Inc (1982) 38 ALR 424, followed.

Ansett Australia v Nieuwmans NT Court of Appeal 9.12.99, followed.

Workcover Corporation (Plas-Tec Pty Ltd) v Grigor (1994) 62 SASR 283, referred to.

R.J. Brodie (Holdings) Pty Ltd v Pennell (1968) 117 CLR 665, referred to.

Workers Rehabilitation and Compensation Corporation v James (1991) 56 SASR 414, and (1992) 57 SASR 365, referred to.

Order: application allowed.

REPRESENTATION:

Counsel:

Worker: Mr Grant

Employer: Mr Bryant

Solicitors:

Worker: Hunt & Hunt

Employer: Cridlands

Judgment category classification: C

Judgment ID number: NTMC 20004

Number of paragraphs: 125

IN THE WORK HEALTH COURT

AT DARWIN IN THE NORTHERN

TERRITORY OF AUSTRALIA

No. 9818294

BETWEEN:

DENISE TANNER

Worker

AND:

ANTHAPPI PTY LTD

formerly known as Normandy Gold Pty Ltd (ACN 007511006)

Employer

REASONS FOR JUDGMENT

(Delivered 21 January 2000)

Mr TRIGG SM:

1. This matter commenced on 1st September 1998 when the worker filed an application in this court by way of an appeal from the employer's decision to cancel her weekly payments of compensation.

HISTORY

2. The worker did not give direct evidence as to her date of birth, but her date of birth is consistently recorded as 14th October 1955 in exhibit R3 (the initial rehabilitation report), exhibit R19 (report of Dr Stevenson dated 11 February 1999), exhibit W9 (the CRS report by Lynette Pullen dated 22 January 1999) and exhibit W8 (the CRS report by Terri Ahrens dated 8 February 1999). The worker was educated in England and left school at the age of 16 years. Since leaving school she has commenced other training courses including beauty therapist course (incomplete), computer and bookkeeping course (incomplete) and a 10-week course in respite for children with disabilities (completed) - as noted in exhibit W9. In addition according to the occupational history obtained by Dr Sillcock (exhibit W10)

"She has not had any previous long term jobs as she has moved around a lot. Her ex-husband was in the United States Air Force before coming to Australia. She has done a number of things on a part-time/casual basis, including shop security, office work, floristry, beauty therapist, nail technician and sewing machinist."

3. The worker immigrated to Australia approximately eleven years ago. She has two children, a son aged 19 who has left home and a daughter aged 14 who lives with her ex-husband in the United States.

4. The worker's ex-husband (Eddie Tanner) was employed at Warrego as a plumber. Warrego was a copper and gold mine situated about 50 kms from Tennant Creek. It comprised a small mining township of about 40 houses and a club. The mine was operated by the employer herein.

5. In addition to the Warrego mine the employer operated (either itself or through associated companies) other mines in the Northern Territory, at Woodcutters and also at the Granites.

6. The worker moved to the Tennant Creek area with her ex-husband. On or about 27 June 1996 the worker was offered employment on a casual basis in the office of the employer at Warrego. This employment commenced on 19 June 1996 and she was paid at a rate of $16.32 per working hour (see exhibit R17). The worker accepted the terms and conditions of this offer of employment by signing the bottom of exhibit R17.

7. On or about 11 July 1996 the worker was offered and commenced employment as a sample preparer at Warrego at a rate of $13.60 per working hour payable on a fortnightly basis (see exhibit R18). The worker accepted the offer of employment on 16 July 1996 by signing exhibit R18. This employment required her to work 12 hours a day for four days followed by two days off. She would then work 12 hours a night for four nights followed by two days off. This cycle would then be repeated. She was therefore working over a six day cycle rather than a weekly one.

8. The area where the worker was employed had two areas, one was for sample preparation and the other was known as the "wet chem" area where the samples were tested. As a sample preparer the worker would take rocks and place them in a crusher which would break them down into smaller pieces. She would then take these pieces and put them in a pulveriser which would reduce the samples into a powder form which would then be passed on to the "wet chem" area. On 24 July 1996 (about 2 weeks into her probationary period) the worker was engaged in her occupation as a sample preparer. In the course of her duties she was placing samples into a metal bowl (which weighed approximately 28 kg) and had to lift these on to a bench. She performed this function about 80-100 times on this particular day. Usually someone else did this lifting but on this particular day her boss had told her that she had to do it and if she didn't do it her job was threatened. That night she had numbness, burning and tingling, pins and needles in both hands. Her problems were initially in both hands with the right hand being worse. The worker is right handed. She finished her 4-day shift on this occasion.

9. When the worker was back in Tennant Creek on her two days off she saw Dr Tonga. He provided a provisional diagnosis of carpal tunnel syndrome (see exhibit R3).

10. On 29 July 1996 the worker returned to work to commence her next shift. She returned to normal duties but after a few days had to start using hand braces (or splints) because of her difficulties. The worker persevered but eventually went back to see Dr Tonga who referred her to Dr Jones. Dr Jones put the worker off work on 3 September 1996 (exhibit R4).

11. The employer had a policy to get injured workers back into the workforce as soon as possible. In cases where a worker was unable to return to the original work then the employer would try to return them to another full-time employment role.

12. On 18 September 1996 the worker was referred to Dr Burrow (Neurologist) in Darwin) for nerve conduction tests (exhibit R3). In the initial rehabilitation report (exhibit R3) it was noted that the worker was to undergo surgery on 10 October 1996. (This surgery did not go ahead on this date). It was further noted that:

"It was not possible to determine rehabilitation goals. These will be forwarded once Denise has clearance from her doctor".

13. Due to the delay in the operation proceeding the worker did some light duties of a couple of hours a day for a couple of days per week in the office of the employer ticking items off invoices and other light tasks. Her hands continued to be bound up in splints while performing these tasks. In about January 1997 she moved to the "wet chem" area working about the same hours but entering data into a computer and generally helping in the office area of the "wet chem" area.

14. On 2 April 1997 decompressive surgery of the right wrist was undertaken by Dr Jones in Tennant Creek hospital (see exhibit R4).

15. On 14 May 1997 the worker was referred to NT Rehabilitation Service by her employer for rehabilitation assessment, assistance in management of disability, and recommendations regarding return to work. In her report (exhibit R4) dated 3 June 1997 Ms Garton (Occupational Therapist) noted that

"Mrs Tanner has been at home resting since the surgery, she has now commenced physiotherapy treatment and is following a home exercise program. Mrs Tanner is wearing a tubigrip bandage for compression over her right wrist during the day and no splint or bandage at night. She is experiencing persistent wrist pain although no longer as severe as immediately post-surgery. Mrs Tanner is taking anti-inflammatory medication daily, a trial without this has recently resulted in increased swelling in the hand, wrist and fingers. Present range of movement is very limited in all movements, and she is unable to fully extend or flex her fingers, now able to tip touch thumb to fingers. Home exercises focus on regaining movement of wrist and fingers, and Mrs Tanner is undertaking these almost constantly throughout each day. Left hand symptoms are also present and although mild, Mrs Tanner is conscious of risk of exacerbation due to overuse, while her right hand's function is so limited."

16. Further in exhibit R4 Ms Garton noted

"Dr Jones has certified Mrs Tanner unfit for work until mid-June when he will next review her progress......As yet it is too early to determine return to work restrictions however when Dr Jones considers Mrs Tanner fit to return to work, it is likely to be to a program of graded hours and light varied duties."

17. In a facsimile transmission to the employer's insurer from Ms Garton dated 24 June 1997, she noted that

"Ms Tanner is not making good progress in recovery from the carpal tunnel surgery."

She recommended that the worker fly to Adelaide for treatment with an Occupational Therapist, Suzanne Caragianis (a hand therapist) for up to four weeks.

18. This recommendation was accepted and the worker went to Adelaide and received treatment from Ms Caragianis. At the completion of the treatment she received a hand-written home exercise program and treatment program from Ms Caragianis (exhibit W3). The worker followed the program and did it every day as "I wanted my hand to get better".

19. On 14 August 1997 Ms Garton wrote to Helen Poyser (the injury management coordinator with the employer) and noted:

"Suzanne Caragianis, Adelaide hand therapist, recommended Denise commence a graded return to work. Dr Tonga has now cleared Denise as fit to work modified duties. Suzanne also recommended Denise continue physiotherapy two times per week for the next three weeks, and continue the extensive home exercise program. To allow adequate time for this treatment and to minimise risk of injury exacerbation, I recommend a very gradual return to work program, with regular review by Dr Tonga to modify recommended hours of duty if appropriate."

Ms Garton then attached her recommended return to work program. The recommended return to work program started off with 3 hours per day 2 days per week (preferably Tuesdays and Thursdays) with a gradual increase aiming for a return to full hours by 17 November 1997. (see exhibit R6).

20. The worker commenced the return to work program on 14 August 1997 on the duties as stipulated in the programs. However, shortly after this the worker's mother, who lived in Queensland, suffered two strokes and was apparently distressed and requesting the worker to visit her. Accordingly, the worker was granted compassionate leave from 21 August 1997 until 9 September 1997 (see exhibit R7).

21. The worker resumed the return to work program on 11 September 1997. In the course of this work she was doing some data input, some washing of beakers and some ledger work. She wore a special glove for swelling. She didn't do as well as had been hoped and she still didn't have the movement in her wrist that she required. She still had a lot of pain and swelling.

22. On 18 & 19 September 1997 Ms Garton visited Warrego and reviewed the worker at her home. She noted (exhibit R9) that

"Mrs Tanner has gained increase in range of movement and decreasing pain levels in her right hand. She has not yet achieved full range of movement in her fingers or wrist and continues to experience painful and significantly reduced extension of her wrist and persistent pain in her right thenar eminence (lower thumb). Swelling occurs after some activities and seems to have been more prevalent since returning to work. Mrs Tanner is aware of decreased sensitivity in her fingertips. Mrs Tanner continues to experience mild left hand symptoms including some night numbness, no discomfort during daily activities other than mild swelling."

23. In an unsigned program update prepared on about 2 October 1997 the programmed return to full hours was moved from 17 November 1997 to 26 January 1998 (exhibit R8).

24. On 20 October 1997 the worker's hours were increased from 3 hours per day on 2 days per week up to 3 hours per day on 3 days per week (exhibit R13). The worker had problems doing these hours despite the continued light nature of her duties. She noticed that she had more swelling and pain and problems sleeping at night.

25. In November 1997 the worker separated from her ex-husband. The worker was unhappy in the latter parts of her relationship.

26. In her rehabilitation progress report dated 20 November 1997 (exhibit R10) Ms Garton noted:

"Mrs Tanner is continuing with the return to work program as recommended but has not progressed beyond working 3 hours on 3 days. Mrs Tanner seems to have reached a plateau in her recovery and has experienced persistent hand and wrist pain and swelling. Ms Tanner has recently been reviewed by Dr Jones who advised to take the return to work plan and the treatment regime very slowly."

27. On 30 December 1997 the worker was reviewed by Ms Garton in Darwin. Ms Garton noted (exhibit R13) that she "was impressed with her demonstrated commitment to use her right hand as normally as possible". She was also reviewed by Ms Garton on 7 January 1998. At that stage she noted the worker's present duties to include data input on computer, hand writing of result sheets, splitting sample into smaller bags, writing on sample bags, running up fine quantities of sample material, cleaning laboratory glassware, transferring liquid out of beakers into test tubes, adding acid to flasks, using electric mixer to mix samples in flask. Ms Garton noted that:

"Mrs Tanner manages these tasks using both hands, she takes regular stretch breaks particularly in tasks requiring sustained hand position such as transferring sample from beaker to test tube, she supports weights close to her body, and regularly tests her capacity to handle heavier loads. Mrs Tanner continues to avoid handling heavier loads such as trays of sample bags or racks of beakers."

28. In the January report of Ms Garton (exhibit R13), Ms Garton was looking to increase the worker's work to 4 hours on 5 days per week by 23 February 1998. Any anticipation of returning to full duties was not envisaged in that report.

29. On 24 January 1998 the worker started going out with Allan McGrice. This relationship progressed quickly and by May 1998 the worker and Mr McGrice were engaged to be married. The worker described herself as being "in love" and happy. Mr McGrice was the workshop supervisor for McMahons Contractors and was working at Warrego.

30. There was a lot of talk and speculation amongst people at Warrego that the mine might be closing down. This speculation included speculation that it may close in September or October 1998.

31. At some time Terry Smith, who was the General Manager for the mine, had called a meeting of employees where he advised that the mine might be closing down but they were still exploring. He advised that if the mine did close personnel would be tried to be found alternate jobs or there would be redundancies.

32. On 19 June 1998 Melanie McClare (the laboratory supervisor) issued a memorandum to all lab staff. In this she advised

"As we know we will be dropping from six to four people when the Warrego tailings CIP plant shuts down. This is expected to happen around September 1998." (exhibit W1)

33. In about early June 1998 the worker found out that Mr McGrice was being transferred in his employment to Parkes in New South Wales. The worker didn't want to be away from Mr McGrice so she spoke to Ms McClare about her options and it was suggested to the worker that she might apply for a voluntary redundancy.

34. On 2 July 1998 the worker made a written application to Terry Smith for a voluntary redundancy "due to personal reasons" effective on 10 July 1998 (exhibit R1).

35. Mr Smith sought advice in relation to this and eventually the application for redundancy was rejected because the worker was on a return to work program. She was advised of this on 7 July 1998 (exhibit W4). The worker was upset by this rejection as she wanted to go with Mr McGrice to Parkes in New South Wales.

36. On 7 July 1998 Ms Garton gave a progress summary (exhibit R11). In this summary Ms Garton noted:

"Mrs Tanner is working 5 hours on 4 days in the laboratory. Her duties are varied laboratory assistant duties, she is now able to repetitively handle loads up to 2 kg (two hands) and make fine and repetitive hand actions for the full period of her 5-hour shift. However, Ms Tanner develops fatigue and increased hand pain at the end of this period and if she attempts to handle heavier loads, sustained fine coordination or undertakes repetitive activities for longer periods. Mrs Tanner works no more than two days consecutively and often has days of increased stiffness and soreness at night and after the days. Mrs Tanner is to be reviewed by Dr Tonga on 13 July 1998 for consideration of her ability to increase hours of work. Mrs Tanner is not confident that she will be able to manage more hours per day, however is prepared to work additional hours on day five. This will also result in working up to three consecutive days per week.

Mrs Tanner remains committed to her exercise daily stretch and strengthening program, and works through pain in exercises and activities, understanding the need to extend in order to progress.

Mrs Tanner was recently reviewed by Mr Schmidt, he recommended an additional exercise which Ms Tanner attempted to do every ten minutes as recommended, however this led to significant increase in pain at the base of her thumb, she has now reduced the program for exercise and is again in control of hand pain. During periods of increased pain Mrs Tanner requires Panadeine Forte to control pain, at other times she avoids analgesic medication.

Mrs Tanner has now applied for voluntary redundancy. Mrs Tanner wishes to leave Tennant Creek to travel with her partner to Parkes, NSW where he has been relocated with his work.

Mrs Tanner has reached a definite plateau in progress of recovery of her hand despite dedicated commitment to her therapy program, she has gained minimal additional range of movement in recent months. Mrs Tanner has the capacity to work selected duties, however significant restrictions do apply in regard to load handling capacity, grip forces, and sustained and repetitive hand movements. Mrs Tanner may be able to increase hours managing the present level of duties however she is highly unlikely to regain the capacity to resume her pre-injury duties of sample preparation.

To clarify Mrs Tanner's work capacity to assist a decision regarding her request for redundancy, it may be appropriate to seek report from Mr Schmidt regarding her prognosis at this point.

On the basis of Mrs Tanner's progress to date and in consideration of her commitment to therapy and willingness to work through pain, I anticipate she will be able to increase hours to perhaps 25 per week, however she will remain limited by the present work restrictions."(emphasis added).

37. In her evidence before me Ms Garton said that she spoke to the worker concerning her plans to apply for a redundancy and told her that her rehabilitation was not complete and it was better for her to adhere to the program or wait for a medical assessment as to her current condition.

38. On 9 July 1998 a meeting was held in the office of Mr Smith. Present at the meeting was Mr Smith, the worker, Mr McGrice and Ms Poyser. The meeting went for about twenty minutes. In the meeting the worker was told by Mr Smith that the only way she could leave Warrego was to resign but if she did that she would lose all her benefits other than ongoing reasonable medical expenses. The worker was keen to go with Mr McGrice who apparently was planning to leave the following day. The worker (without any independent legal advice) decided to leave the employment. She was advised by Mr Smith that it was probably better is she didn't go for work in the mining area in the future.

39. The worker then subsequently signed a type-written note to Mr Smith stating

"I, Denise Tanner wish to resign from my position as lab assistant at the Warrego site, due to personal reasons effective from 10/7/98.

I would also like to thank Terry Smith and staff for their support during my term of employment." (exhibit R2)

In that exhibit the worker provided details of her forwarding address care of a PO Box in Parkes, NSW, along with a phone number and fax number.

40. On 10 July 1998 the worker wrote to the employer's insurer (see exhibit W5) in relation to Work Health claim no. 970723700252 and advised

"I, Denise Tanner have resigned from my position as lab assistant with Normandy Gold at the Warrego site due to personal reasons.

I have been advised that I am entitled to ongoing compensation for medical expenses eg. physiotherapy and specialist medical treatment for my injury received whilst employed with Normandy Gold.

Can you please advise if you have a preferred doctor and physiotherapist whom I should see in the area of my present address to assess the condition and advise of any treatment to complete rehabilitation of my injury?

Can claims for the above be made through a NSW MMI office?

I can presently be contacted through A. McGrice, PO Box 993, Parkes, NSW, 2870, fax 02 6865 2298."

41. The worker left Warrego with Mr McGrice and moved to Parkes in New South Wales on 10 July 1998.

42. It was put to the worker in cross-examination by Mr Bryant (counsel for the employer) that at the time of the meeting with Mr Smith she had decided to go with Mr McGrice whatever the consequences and the provision of legal advice would not have affected her decision. The worker disagreed with this and said that it would have depended upon what the legal advice would have said. She pointed out that she had no legal advice. In response to that Mr Bryant again put it to the worker that nothing would have stopped her from going with Mr McGrice no matter what the advice was. Again the worker disagreed with this and said that she felt that if she knew where she stood she might have stayed, saying "I don't know if I'd have gone regardless. I don't know".

43. Since leaving Warrego on 10 July 1998 the worker has not been engaged in any employment. She said that since stopping work her condition had got a lot better and if she was still at Warrego she expected that she'd be doing more hours now than when she left.

44. On 21 July 1998 the worker received her last payment from the employer. She has not received any salary or weekly payments of compensation from the employer since 10 July 1998.

45. On 23 July 1998 Susan Sem wrote a letter to the worker (exhibit W6) enclosing a Form 5 under the Work Health Act. For some reason which was never explained in evidence Ms Sem sent this to PO Box 294, Tennant Creek, NT, 0861. This was despite the worker advising the employer (exhibit R2) that her new address was PO Box 993, Parkes in NSW and providing a phone number and fax in that location. This was also despite the worker writing to Ms Sem on 10 July 1998 (exhibit W5) again advising her of her address at PO Box 993, Parkes in NSW and providing a fax number in that location.

46. It is unclear from the worker's evidence as to when she received the letter and Form 5. However, I note that in paragraph 7 of the amended statement of claim the worker alleges that she received them on or about 30 July 1998, and this allegation is not disputed in the employer's pleadings.

47. The worker and Mr McGrice lived in Parkes for about three months. Whilst in Parkes the worker went to an employment agency and was told to forget it because of her health problems. She also went to shops but was unsuccessful in getting employment due to her age or the fact there was no vacancy or that there was lifting involved.

48. After about three months Mr McGrice was transferred to Gladstone in Queensland and the worker went with him. They remained in Gladstone for about twelve months.

49. On 22 January 1999 the worker was assessed by Lynette Pullen, psychologist with CRS Australia. In her assessment (exhibit W9) it states:

"It can be concluded that at this stage Mrs Tanner is restricted by the type of work she can do. That is, currently Mrs Tanner is unable to write with her right hand for any length of time. Thus, work that does not involve constant writing or typing may be more appropriate (eg. relief receptionist). Mrs Tanner appears motivated to establish in an area of work that my provide some permanency and is prepared to give new jobs and opportunities a chance (eg. counselling, real estate sales). At this stage Mrs Tanner lacks qualification and skills for work that may be suitable for her hand condition. Thus, returning to further study and training may be a viable option for Mrs Tanner to seek permanent full-time employment. In the meantime there are possible employment opportunities for Mrs Tanner (eg. retail assistant, relief receptionist). However, it is suggested that Mrs Tanner return to these options on a part-time basis to assess the work impact on her hand and to gradually increase hours of work to suit her condition."

50. On 28 January 1999 the worker was assessed by Terri Ahrens, Occupational Therapist, also from CRS Australia. Ms Ahrens noted (exhibit W8) that:

"Mrs Tanner's overall performance on the day of assessment indicates that she is most suited to work falling into the sedentary category of physical work demands. She is restricted in her ability to perform fine motor tasks....or repetitive and sustained upper limb movements. Any suitable position would allow frequent postural change, would not involve repetitive/sustained fine manipulation, and would not involve lifting or reaching."

51. On 5 February 1999 the worker was assessed by Dr Stephenson, consultant physician. In his report (exhibit R19) he recorded her current status as:

"Mrs Tanner said that she is much better now, but clearly not back to normal. She said she can do "lots of things, although she still has funny feelings in the tips of all of her fingers". She can do her housework, although there are some difficulties and delays with things like mopping, sweeping and lifting of washing baskets. She said she can drive a car, hers being fitting with a knob on the steering wheel but she said she has reached the point where she probably doesn't need this and is now really much better.

Mrs Tanner said she cannot fully close her fist but she can come fairly close to it. If she attempts to put her hand flat on the tabletop she cannot flatten her fingers fully yet. She has difficulty with buttons. She still gets depressed but not nearly as severely as she was when her hand symptoms were at their worst. She is now looking for work and thinks she can probably cope with shop work, in fact, she was offered one job but when she admitted to still being on a compensation claim, the offer was withdrawn.

She is very keen on riding and has two horse but can't ride yet."

52. Dr Stephenson expressed the following views in his report (exhibit R19) dated 11 February 1999):

"It seems Mrs Tanner still suffers from the affects of the physical injury to her wrist. It appears that the original injury was a carpal tunnel syndrome, which is probably present in both hands, but her right hand is much more affected than her left hand. There is no current evidence of any left carpal tunnel syndrome.

It appears fairly clear that the recovery from carpal tunnel syndrome was complicated by reflex-sympathetic dystrophy and that this is now also substantially resolved leaving her some minor restrictions of strength and movement in her hand.

I would consider Mrs Tanner's current incapacity partial. Although she has very substantially improved from the worst of her symptoms, she still has a detectable limitation of flexion and extension and loss of strength in her right hand. There is the capacity for a considerable range of work, such as retail work but she would be restricted from performing very heavy or repetitive manual work.

The prognosis is quite good. I expect she would make a complete recovery from her reflex-sympathetic dystrophy, regaining a normal range of movement and the best part of normal strength over the next six to twelve months. I do not expect Mrs Tanner to gain full capacity to undertake work duties pulverising rocks, but she should be able to do a very extensive range of occupational duties short of those physical demands.

It would not be, however, arguable that she is fully capable of all forms of work, as she was prior to her injury of July 1996."

53. Dr Stephenson prepared a further report dated 13 August 1999 (exhibit R20) which was not based on any further examination. In that report he expressed the following opinion:

"In my opinion the rehabilitation program would have been expected, if seen through to completion to have returned her to a full working capability in duties that were slightly restricted from the fairly heavy duties which she was performing when she was initially injured. It would be expected that these restrictions would be for an extended and possibly an indefinite period. In addition I can see that there would also be the issue with regard to individual susceptibility to re-injury ie. that generally, people who develop carpal tunnel syndrome, anatomically tend to have a smaller carpal tunnel than the rest of the population. However, it would be expected that the return to work program would have returned her to full working hours in the laboratory preparation. I consider that would have seen her through to a point where she would have been capable of a variety of occupations outside the mining industry such as retail, clerical and working with disabled children."

54. It is to be noted that in coming to the view that the return to work program would have returned her to full working hours in the laboratory preparation Dr Stephenson was not aware that her hours at the time of injury involved 48 hours work over four consecutive days. It is clear from his cross-examination that he was expecting it to be a normal working week in the order of hours in the high thirties. His opinion on this aspect therefore was premised on a factual error.

55. On 1 October 1999 the worker was assessed by Dr Sillcock (consultant occupational physician). In her report dated 4 October 1999 (exhibit W10) she expressed the following opinions:

56. "Ms Tanner is still suffering from the effects of Reflex Sympathetic Dystrophy in her right wrist, although the original problem, carpal tunnel syndrome, has resolved. She still has significant pain and reduction of movement.

57. Ms Tanner is still partially incapacitated for her work. I do not think that she is capable of doing her full pre-injury duties, especially lifting weights up to 30 kgs. I think that she is fit for work with the following restrictions:

* No lifting in excess of 3 kgs with the right hand.

* No repetitive movement with the right wrist.

* No sustained right wrist movement.

58. I do not think that Ms Tanner is fit for her pre-injury duties yet. This is not because she has not been in the return to work program, but because of the nature of her condition. Had she remained in it, it is possible that she may have been working full time hours by this stage, but she would still have been doing restricted duties.

59. Ms Tanner has made good progress to date and I would expect this to continue. Her condition is likely to resolve over a further period, the exact time being difficult to ascertain, but likely to be two years or so. However, she will need to be careful about activities that place strain on the wrists in the future."

60. On 6 October 1999 Dr Stephenson again re-assessed the worker. At this time he noted (exhibit R21) that:

"Mrs Tanner reported that she still experiences a lot of trouble with attempted activity. Activities such as tying shoelaces, mopping floors, blow-drying her hair or carrying a full basket of washing are uncomfortable. She said she needs a mechanical aid to open jars and bottles. Mrs Tanner stated she has trouble writing letters and lifting and described gardening and pushing a lawn mower as very difficult and said she generally does not do this. She advised that she gave up riding her horses, lifting saucers and oven trays is difficult and painful. In the garden she has pulled a few weeds but is unable to dig. She was unclear as to whether she had actually made the attempt.

Mrs Tanner informed me that she has undertaken some gymnasium activities where she lifted weights between 1 kg and 3 kg but said she has not attempted to cope with any heavier weight. She advised that she is otherwise well although she describes symptoms of headache and neck pain of a tension type nature."

61. In his report dated 12 October 1999 (exhibit R21) Dr Stephenson came to the following opinion:

"There is no current evidence of active carpal tunnel syndrome or of active reflex sympathetic dystrophy, ie. there is no evidence of colour change, temperature change or muscle wasting in the right hand. While it could not be possible to clarify if Mrs Tanner is fully fit to undertake restricted manual duties however, I would regard her as clearly fit to undertake retail employment and a variety of similar duties. The situation with regard to clerical duties which may need repetitive manual work is unclear as I have some difficulty in seeing the purely medical explanation for the diminution in grip strength over the last eight months. With the evidence available to me there has been no change in the work capacity since she last attended me."

62. Late in October 1999 the worker and Mr McGrice moved from Queensland to South Australia. Mr McGrice is now based in the office of McMahons Contractors at Lonsdale although he may have some on-site relief work to attend to.

63. As regards ongoing symptoms the worker gave evidence that her right hand is still a problem. It is gradually getting better, she still has problems mopping floors, lifting any weight, writing for any length of time. She takes Panadeine Forte about four to five times per week for pain and sometimes she takes them less often and sometimes more often. She can no longer horse-ride or tenpin bowl. She can't lift a heavy roast and sometimes she has problems lifting pots off the stove. She has trouble washing her hair and trouble lifting her arm over her head. She can't sew. She still gets pain in the right hand which is pretty constant.

64. Mr McGrice in his evidence noted that the worker still has a problem with heavy items, he still occasionally has to tie her shoelaces and she still can't mop floors or do the cleaning. He confirmed her use of Panadeine Forte and suggested that she was taking these at least three times per week.

65. The worker was not challenged in relation to the accuracy of her account of difficulties either as regards her evidence in court or her complaints to medical practitioners or rehabilitation providers. I find that the history as set out above is accurate and factually correct.

66.

67. THE PLEADINGS

68. As noted in paragraph 1 hereof the worker commenced proceedings in this Court on 1 September 1998. In that proceeding the worker challenged the employer's decision to cancel payments of weekly compensation and sought an order for recommencement of payments from the date of cessation.

69. The employer filed an Answer to the Statement of Claim on 11 September 1998 disputing that it had breached s. 69(1)(a) of the Act, but if it did seeking an order reducing or cancelling payments pursuant to s. 69(2)(d) of the Act.

70. There were subsequent amendments to the pleadings. By the time the matter came to trial the following pleadings applied.

Statement of Claim

1. At all material times the applicant was employed by Normandy Gold Pty Limited.

2. On or about 19 June 1996, the applicant commenced employment with the Respondent at its Warrego Mining Operation near Tennant Creek in the Northern Territory of Australia.

3. On or about 24 July 1996 the worker suffered an injury in the course of her employment.

4. By letter of 30 September 1996 the respondent, through its workers compensation insurer accepted liability for the applicant's injury.

5. The worker has participated in a workplace based return to work programme and on 12 June 1998 the applicants hours to work with the respondent were increased to 5 hours per day, 4 days per week, performing modified duties for the sum of $546.00 per week.

6. On or about 10 July 1998, the applicant resigned from her employment as her partner had been transferred from his employment at Warrego to Parkes in New South Wales.

7. On or about 30 July 1998, the applicant received a Notice of Decision (Form 5) by post advising of the respondent's decision to cancel payments of compensation.

8. The applicant appeals against the respondent's decision to cancel payments of compensation of the following grounds:

(i) The applicant did not unreasonably fail to participate in a work place based return to work programme.

(ii) The applicant's resignation from her employment in the circumstances does not entitle the respondent to cancel compensation payments.

(iii) The Notice of Decision and Rights of Appeal (Form 5) served on the applicant and purporting to cancel payment of compensation is defective and therefore invalid on the following grounds:

(a) the employer purports to dispute liability for the applicant's claim pursuant to section 69 of the Work Health Act.

(b) the employer ceased payments of compensation forthwith, without giving the applicant 14 days notice, in contravention of section 69(1)(a) of the Work Health Act.

9. The applicant seeks the following orders:

(i) That the notice purporting to cancel payments of compensation is invalid;

(ii) That the employer make payments of compensation from the date of purported cancellation and continuing.

(iii) That the employer pay the applicant's costs on an indemnity basis pursuant to the Supreme Court Costs Rules.

(iv) That the employer pay interest pursuant to sections 89 and 109 of the Work Health Act.

The Defence of the Employer is

1. The Employer admits paragraph 1 of the Statement of Claim.

2. The Employer admits paragraph 2 of the Statement of Claim.

3. The Employer admits paragraph 3 of the Statement of Claim, and says that the injury suffered on or about 24th July 1996 is described by Dr Albert Tonga, treating General Practitioner, as carpel tunnel syndrome.

4. The Employer admits paragraph 4 of the Statement of Claim.

5. Subject to the particulars, the Employer admits paragraph 5 of the Statement of Claim.

Particulars

5.1 The Worker was partially incapacitated for work, as certified by her general practitioner, from 3rd September 1996 to 2nd April 1997, and from 4th August 1997 to 13th July 1998.

5.2 Between 2nd April 1997 and 4th August 1997, the Worker was totally incapacitated for work as certified by Dr A Jones of Alice Springs Hospital, following an operation.

5.3 The Worker was returned to work, with the assistance of rehabilitation providers, on alternative duties. The return to work program was successful in increasing time at work from 3 hours per day, 2 days per week on 15th September 1997 to 5 hours per day, 4 days per week on 12th June 1998.

6. Subject to the particulars, the Employer admits paragraph 6 of the Statement of Claim.

Particulars

6.1 The Employer received written advice from Ms Tanner, dated 10th July 1998, to the effect that she had resigned her position "due to personal reasons".

7. Subject to the particulars, the Employer admits paragraph 7 of the Statement of Claim.

Particulars

7.1 A Notice of Decision (Form 5) was sent by certified mail, under covering letter dated 23rd July 1998, to Mrs Tanner.

7.2 Two copies of the Notice were sent, one to Mrs Tanner's address in Tennant Creek and another to an address advised to be for Mrs Tanner in Parkes, NSW. Neither was returned to the sender.

8. The Employer denies paragraph 8 including points (i) to (iii) and (a) to (b).

Particulars

8.1 By Form 5 dated 23rd July 1998, the Employer gave notice of cancellation of payment of weekly benefits pursuant to section 69 of the Work Health Act.

8.2 The decision to cancel weekly payments was made in accordance with section 75B of the Work Health Act which requires a Worker to participate in rehabilitation training or a work based return to work program.

8.3 The Worker has unreasonably failed to participate in a work-based return to work program which could enable her to undertake more profitable employment.

8.4 The Worker is therefore deemed to be able to undertake such employment.

8.5 Such employment results in a capacity to earn more than $546.00 per week, and therefore entitles the Employer to cancel benefits paid pursuant to section 65 of the Work Health Act.

8.6 If the Worker is entitled to compensation, the Worker's loss of earning capacity is nil; or an amount to be determined by the Court.

8.7 The Employer says that the Form 5 dated 23rd July 1998 is valid; and if payments were cancelled earlier than required, the Employer will rectify the situation by making appropriate payments.

8.8 The Employer says that by resigning her position with the Employer the Employer lost the opportunity to provide the Worker with alternative duties at the mine;

8.9 The Employer says that had the Worker completed the RTW program with the Employer she would have been able to undertake pre-injury duties;

8.10 The Employer says that by resigning her employment with the Employer she failed to take advantage of the rehabilitative opportunities which would have been made available to her by the Employer;

8.11 The Employer says that by leaving her employment the Worker has failed to participate in a return to work program and in so doing so has breached her obligation of mutuality with the Employer.

9. The Employer denies the claim for relief set out in paragraph 9 and denies that the Worker is entitled to the orders set out in paragraph 9 and seeks the orders that the Workers application be dismissed with costs.

10. If the Worker is entitled to compensation, the most profitable employment which the Worker is capable of undertaking yields an amount of weekly earnings which is greater than nil.

11. The Employer says that the Worker has failed to mitigate her loss.

Counterclaim

12. The Employer says that if the Worker is entitled to compensation, which is denied, the Employer applies to the Court pursuant to section 69(2)(d) for an order reducing or cancelling payments.

Particulars of Claim

12.1 The Worker was partially incapacitated for work, as certified by her general practitioner, from 3rd September 1996 to 2nd April 1997, and from 4th August 1997 to 13th July 1998.

12.2 Between 2nd April 1997 and 4th August 1997, the Worker was totally incapacitated for work as certified by Dr A Jones of Alice Springs Hospital, following an operation.

12.3 The Worker was returned to work, with the assistance of rehabilitation providers on alternative duties. The return to work program was successful in increasing time at work from three hours per day, two days per week on 15th September 1997 to five hours per day, four days per week on 12th June 1998.

12.4 On or about 10th July 1998 the Worker resigned her employment with the Employer and left the geographic location where the Employer carried out its business.

12.5 The Worker resigned her employment with the Employer for personal reasons unrelated to her injury sustained in the course of her employment with the Employer generally.

12.6 At the time of her resigning her employment with the Employment, the Worker was undergoing a rehabilitation program provided for by the Employer. Thereafter the Worker has not continued on any rehabilitation program either through her Employer or any other source, which failure has been as a result of the Workers own voluntary decision.

12.7 Since resigning her employment with the Employer, the Worker:

12.7.1 has been absent at all times from the geographic region where the Employer engages in its business;

12.7.2 has not sought any alternative employment or alternative employment with or through the Employer;

12.7.3 remains unwilling to work for the Employer.

12.8 The Worker has unreasonably failed to participate in a work based return to work program which would enable her to undertake more profitable employment.

12.9 But for the Workers unwillingness to undertake or seek work for or with the Employer, the Worker would be able, and would have been able to since 10th July 1998, to earn as much as she would otherwise have been able to earn prior to sustaining the injury that she sustained in the course of her employment with the Employer.

12.10 By reason of her actions in resigning her employment and being unwilling to work for or with the Employer, the Worker has breached the mutuality of her employment with the Employer and is not entitled to weekly payments of compensation pursuant to section 65 of the Work Health Act 1986 at any time subsequent to the said resignation and the date hereof.

12.11 By reason of the foregoing matters the Worker is not entitled to weekly payments of compensation pursuant to section 65 of the Work Health Act as from 10th July 1998.

Defence to Counterclaim

In defence to the employer's counterclaim dated 19 October 1999 the worker says:

1. The worker does not plead to paragraph 12 of the counter claim other than to say that section 69(2)(d) of the Work Health Act does not vest the court with jurisdiction to reduce or cancel payments.

2. The worker admits the allegations contained in paragraph 12.1 of the counterclaim but says further that the worker was also partially incapacitated from 24 July 1996 to 2 September 1996.

3. The worker admits the allegations contained in paragraph 12.2 of the counterclaim.

4. The worker admits the allegations contained in paragraph 12.3 of the counterclaim.

5. The worker admits the allegations contained in paragraph 12.4 of the counterclaim.

6. The worker admits the allegations contained in paragraph 12.5 of the counterclaim.

7. The worker denies the allegations contained in paragraph 12.6 of the counterclaim and says:

7.1 At the time of resigning her employment the worker was undertaking a workplace based return to program;

7.2 Since resigning her employment the worker has been assessed by a rehabilitation service provider on referral by the employer but the employer has not otherwise provided any rehabilitation treatment of suitable employment to the worker;

7.3 Since resigning her employment the worker has undergone physiotherapy treatment on a continuing basis and pursued a home exercise program as designed by the employer's agent.

8. As to paragraph 12.7 of the counterclaim:

8.1 Admits the allegations contained in sub-paragraph 12.7.1;

8.2 Denies the allegations contained in sub-paragraph 12.7.2; and

8.3 Denies the allegations contained in sub-paragraph 12.7.3.

9. The worker denies the allegations contained in paragraph 12.8 of the counterclaim.

10. The worker denies the allegations contained in paragraph 12.9 of the counterclaim.

11. The worker denies the allegations contained in paragraph 12.10 of the counterclaim.

12. The worker denies the allegations contained in paragraph 12.11 of the counterclaim.

71. In the course of the hearing and during final addresses the question of what were the issues that I was to determine was raised and canvassed. The issues appear to be:

1. was the worker's compensation payments validly cancelled in accordance with the Act?

2. If no to issue number one, what orders (if any) should be made?

In looking at the questions the starting point is to look at the Form 5. This document (exhibit W6) stated:

"Dear Denise Tanner,

With regard to your claim for payment of benefits as prescribed under the Work Health Act. You are hereby advised that your employer Posgold Limited acting on the advice of MMI hereby:-

Disputes liability for your claim pursuant to section 69 of the Work Health Act.

The reasons for this decisions are:-

1. On 12/06/98 you returned to work with Posgold Limited, working 5 hours per day, 4 days per week performing modified duties.

2. Your employer says that the most profitable employment reasonably available to you results in a capacity to earn more than $546.00 per week.

3. In the alternative, your employer says that on 10/07/98 you voluntarily resigned from your employment with Posgold Limited by applying for a voluntary redundancy. Your employer says that as a result you have reasonably failed to participate in rehabilitation training or a workplace based return to work program which could enable you to undertake such employment and your compensation is cancelled accordingly.

Signed

Dated 23/7/98

72. The first thing to note is that the Form 5 starts off by purporting to "dispute(s) liability for your claim". On the pleadings (supra) it was admitted that by letter dated 30 September 1996 the employer accepted liability for the injury. In my view, having accepted liability (and there being no evidence of any new claim having been submitted) it was no longer open to the employer to make a decision under section 85 of the Act.

73. On the evidence the worker's claim was accepted and payments of compensation continued up until 10 July 1998.

74. When the rest of the Form 5 is read it becomes clear that what the employer is in fact purporting to do is to cancel weekly payments of compensation on three alternate bases:

74.1 On 12/6/98 the worker returned to work, working 5 hours per day, 4 days per week performing modified duties.

74.2 That the most profitable employment reasonably available to the worker results in a capacity to earn more than $546.00 per week; or

74.3 That the worker has "reasonably failed to participate in rehabilitation training on a workplace based return to work program which could enable you to undertake such employment".(emphasis added)

75. Section 69(1) of the Act states as follows:

"Subject to this Subdivision, an amount of compensation under this Subdivision shall not be cancelled or reduced unless the worker to whom it is payable has been given -

(a) 14 days notice of the intention to cancel or reduce the compensation and, where the compensation is to be reduced, the amount to which it is to be reduced; and

(b) a statement in the approved form setting out the reasons for the proposed cancellation or reduction and indicating that the worker has a right to appeal against the decision to cancel or reduce the compensation.

76. In Collins Radio Construction Inc. v Day (1998) 143 FLR 425 the N.T. Court of Appeal (Kearney A CJ, Mildren J and Gray A JJ) held at pages 430-1:

"Adopting what was said in Johnston v Paspaley Pearls Pty Ltd, the question can be narrowed down to whether the requirement that the certificate served upon the worker should indicate that the worker has ceased to be incapacitated for work is of such importance to the object of the statute as to disclose an intention that its complete non-observance should invalidate the action of the appellant in cancelling the respondent's weekly benefits. For the reasons given by the learned Chief Justice, we think that the answer to this question must be "yes", and that it is clear beyond question that the requirements of s 69(3) as to the contents of the certificate may not be ignored. However, we would not go so far as to say that a form of words other than those prescribed by the subsection could never amount to compliance.

We do not think it was the intention of the legislature that only the precise words chosen by the legislature, and no others conveying the same meaning, would suffice. Obviously those who draft these certificates would be wise to follow the words of the statute, but they are not to be treated as possessing special magical powers which other words to like effect do not. It is not necessary to decide whether words conveying the same meaning comply "strictly" or " substantially" with the subsection.

However, in this case, the words chosen in the certificate do not convey the essential meaning for the two reasons previously identified. It may be that the words "for work" can be implied from the circumstances and from the form of the certificate, but even is this be so, to say merely that the worker is not longer totally incapacitated for work, is not another way of saying that the worker is no longer incapacitated for work.

Moreover, there are patently other difficulties with the certificate in that: (a) it purports to cancel the payments forthwith, whereas s 69(1)(a) requires 14 days notice of an intention to cancel payments - in this respect, we note that the prescribed form in the regulations is defective in that the prescribed form does not correspond with the requirements of s 69(1)(a); (b) the reasons given for cancelling the benefits do not comply with s 69(4)."

77. In Disability Services of Central Australia v Regan a decision of the N.T. Court of Appeal (Mildren, Thomas and Priestley JJ) delivered on 31 July 1998, Mildren J (with them Thomas and Priestley JJ agreed) noted "Wormald International (Aust) Pty Ltd v Aherne (unreported, 21/6/94, Mildren J) in which it was said that an employer was not entitled in proceedings by way of appeal under s 69 to rely on grounds other than those contained in the Form 5 notice".

His Honour went on to say at pages 4-5:

"Had the worker merely appealed under s 69, the only question would have been whether the employer had established the grounds stated in the notice, the burden of proof in so doing resting with the employer. If the employer failed to establish these grounds, the effect of allowing the appeal would be that the employer would be required by force of s 69 to continue to make weekly payments of compensation until the employer was lawfully permitted to cease or reduce those payments, either by giving a fresh notice or by making a substantive application under s 104. No question would have arisen as to whether or not, after the date of the notice, the worker had ceased to be incapacitated or was only partially incapacitated. An appeal under s 69 calls into question only whether there has been a change in circumstances justifying the action unilaterally taken by the employer at the time the notice was given: see Morrissey v Conaust Ltd (1991) 1 NTLR 183 at 189; AAT Kings Tours Pty Ltd v Hughes (1994) 4 NTLR 185 at 189. Consequently the submission of counsel for the appellant was that the worker, by seeking orders for weekly compensation from the date of cessation of payments to date and continuing, broadened the scope of the issues to include the question of the worker's entitlements from the date of the Form 5 notice to the date of the hearing. Moreover, s 69 (and appeals under that section) relate only to the reduction or cancellation of weekly payments: see the opening words of s 69(1) which refer to "an amount of compensation under this Subdivision". The employer is not required to give a notice under that section to stop making payments under s 78 which is in a different subdivision of the Act. Clearly, the worker's claim sought reinstatement of benefits payable under that section. In those circumstances the employer was no longer confined to the grounds stated in the Form 5 notice, but could raise by way of an answer any other ground to resist the claim it wished, including whether there was ever any injury in the first place."

His Honour added at page 7:

"In dealing with an appeal under s 69, the Court is not called upon to decide whether or not the employer was justified in the action it took because there was evidence to support the action. The question which has to be decided is whether, upon a consideration of all of the evidence in the case, the employer has proved the facts set out in the certificate, and if so, whether as a matter of law those facts support the conclusion that the worker's weekly compensation payments should be cancelled or reduced, as the case may be, as from the relevant date, which is 14 days after service of the Form 5 notice.

But this question became irrelevant because of the wider issues raised by the employer in its answer,...."

His Honour concluded at page 11:

"An employer who has served a s 69 notice, may subsequently decide after the employer (sic. worker) has appealed, that the issues to be decided upon the appeal are too narrowly confined. At present, if the employer is in this position, the employer can bring its own substantive application and apply to have the two applications heard together. It may simplify hearings procedurally and focus proper attention on who bears the onus of proof if the rules were amended to permit the employer to raise new issues by way of counterclaim." (words in brackets added by me).

I note that His Honour's concluding comments at page 11 have been taken up and the new Work Health Rules (which commenced on 1 August 1999) permit a counterclaim in Rule 9.05. Hence, in the instant case the employer filed a defence and counterclaim on 19 October 1999.

78. The effect of these various decisions and the amendments to the Rules to allow for counterclaims appears to result in the following propositions:

78.1 Unless s 69(2) is applicable payments of compensation can only be reduced or cancelled in accordance with s 69(1);

78.2 Prior to the new rules coming into force on 1 August 1999, the Court could only order the cancellation or reduction of compensation on a ground not contained in a valid s 69(1) notice:

(1) if the worker merely appealed under s 69 and did not broaden the issues by the employer:

(a) issuing a further notice under s 69(1) and if the worker appealed that decision seeking to consolidate the two actions; or

(b) making a substantive application under s 104 and seeking to consolidate the two actions.

(2) if the worker in the statement of claim broadened the scope beyond a mere appeal against the Form 5 then the employer could raise in its answer any ground to resist the claim that it wished and was not confined to the matters in the Form 5.

78.3 Subsequent to the new rules coming into force on 1 August 1999, the Court can now order the cancellation or reduction of compensation on a ground not contained in a valid s 69(1) notice:

(1)If the worker merely appealed under s 69 and did not broaden the issues by the employer:

(a) issuing a further notice under s 69(1) and if the worker appealed that decision seeking to consolidate the two action; or

(b) making a substantive application under s 104 and seeking to consolidate the two actions; or

(c) filing and serving a counterclaim properly raising any new issues under Rule 9.05.

(2)If the worker in the statement of claim broadened the scope beyond a mere appeal against the Form 5 then the employer could raise in its answer (or counterclaim) any ground to resist the claim that it wished and was not confined to the matters in the Form 5.

78.4 Appropriate findings (and consequential orders under s 69(2)(d)) can be made now on any issues properly raised by an employer in an answer or counterclaim.

79. If this matter had been heard and determined before 1 August 1999 then in my view no issue beyond the matters in the Form 5 could have been raised by the employer. The reason for this is that, in my view, the Statement of Claim by the worker is merely an appeal against the Form 5 and does not seek to broaden the enquiry. The only part of the statement of claim which might be said to enlarge the enquiry is paragraph 9(ii) in the prayer for relief where the worker seeks:

"(ii) That the employer make payments of compensation from the date of purported cancellation and continuing."

But from the way Mr Grant opened and presented his case I understand that the worker was simply asking that if the Form 5 were invalid that payments resume from the date that they ceased and continue until such time as they are properly reduced or cancelled in accordance with the Act.

80. The hearing commenced on 1 November 1999 and concluded on 4 November 1999. Therefore, any issues raised by the employer in its counterclaim were alive before me and could (if made out by the employer on the balance of probabilities) form the basis of an order under s 69(2)(d).

81. I turn to consider the Form 5. In my view the Form 5 is defective for a number of reasons:

81.1 It purports to dispute liability rather than cancel or reduce payments;

81.2 By purporting to dispute liability if thereby purported to be a notice under s 85(1)(c) and not s 69(1)(a);

81.3 By purporting to dispute liability this could not be "pursuant to section 69" as the notice asserts that it was;

81.4 Reason for decision number 2 appears to be an attempt to assert that the worker has no "loss of earning capacity" in accordance with s 65(2) of the Act. If this is the intention then under s 69(1)(a) 14 days notice of the intention to cancel was required and no such notice was given (as noted in Ansett Australia v Nieuwmans (a decision of the NT Court of Appeal delivered on 9.12.99) at page 11 this is fatal to the validity of the notice);

81.5 Reason for decision number 3 is not a valid reason under the Act as under s 75B(2) the worker has to "unreasonably" fail but here the employer asserts that the worker's failure was "reasonable".

81.6 If the reason for decision number 3 did validly raise an issue under s 75B(2), which it doesn't, then 14 days notice was required under s 69(1)(a) and no such notice is given.

82. This would only leave reason for decision number 1 which appears to be an assertion under s 69(2)(a) in which case s 69(1) does not apply. This assertion appears to be admitted in part by the worker by paragraph 5 of her amended Statement of Claim. The aspect which would appear to be in dispute is whether participating in a "workplace based return to work program" is a "return to work". If it is then the employer was entitled to reduce or cancel payments without the need to comply with s 69(1) or give any notice.

83. One could imagine many different factual scenarios. Some of these (this is not intended to be an exhaustive list) could include:

83.1 a worker returning to his normal job on his normal pay performing his normal duties (this would be a return to work);

83.2 a worker returning to his normal job on his normal pay performing modified duties (this could be a return to work);

83.3 a worker returning to modified duties for less hours and less pay (this could be a return to work);

83.4 a worker returning to a work trial not paid by the employer for his efforts but receiving compensation (this would not be a return to work).

84. It seems to me that a "return to work" would require a return to some work for which the person is paid rather than, or in addition to, receiving compensation under the Act. The word "work" does not appear to require any need to qualify it by adding words such as "full-time", "pre-injury" etc.

85. I could imagine a situation where an employer might be happy to pay a worker his or her normal weekly earnings despite the fact that a worker is unable to return to their pre-injury duties or productivity. Likewise, there may be situations where an employer is willing to provide a worker with part-time work because of their limited capacity for work and pay only for the time worked with any shortfall to be made up by compensation payments. In my view, that would still be a return to work, and the payments of compensation could be reduced to take account of the wages being received without reference to s 69(1).

86. In the instant case it was agreed between the parties that the worker's normal weekly earnings ("NWE") at the date of her first entitlement in 1996 was $728.01. As noted above the worker in fact was working 48 hours over a six day cycle. I assume that the parties have correctly adjusted this to a seven day week. Since this matter is agreed I have not looked behind the correctness of the agreement.

87. Tracey Konidaris was the payroll officer for the employer for about two years. She worked at Warrego until 29 October 1999. At that stage there were only two other employees at Warrego and they left the same day that she did. Accordingly, the Warrego mine finally completely closed on 29 October 1999.

88. Ms Konidaris was unable to say when the laboratory closed, but it was clearly prior to 29 October 1999. She was the payroll officer when the worker was there.

89. According to the evidence of Ms Konidaris she would calculate the average fortnightly earnings for the worker, then deduct what she worked physically and the employer claimed the balance off MMI (the insurer). She believed that she was being paid at the rate of $13.60 per hour which should have increased to $14.80 per hour in April 1998. She was however unable to confirm that her pay went up to $14.80 per hour as she was on maternity leave at the time.

90. As noted previously prior to the injury the worker's usual hours were 4 days of 12 hours, followed by 2 days off, followed by 4 nights of 12 hours, followed by 2 days off. She would work 48 hours every 6 days.

91. On the evidence I find that the worker had returned to work in that she was performing duties with the employer for which she was being paid by her employer and that such payments were separate from any top-up she may have received by way of weekly compensation.

It has also been agreed between the parties that the worker was working 20 hours/week and being paid $14.80 per hour, making her wages $296.00/week.

92. I therefore find that the worker had returned to work with the employer and on 10 July 1998 she was earning $296 per week from this employment. Any amounts that she was paid above this figure should have been additional payments of weekly compensation in order to bring her up to a figure which should have equalled 75% of her loss of earning capacity.

93. It follows that since the worker returned to work, the employer did not need to comply with s 69(1) before cancelling or reducing her compensation, and nor was 14 days notice required.

94. The parties have agreed that the worker's NWE indexed to 1998 was $777.62.

95. Pursuant to s 65(1) of the Act the worker was entitled to be paid 75% of her loss of earning capacity.

96. Pursuant to s 65(2) loss of earning capacity is the difference between the indexed normal weekly earnings (in this case agreed at $777.62 for 1998) less the amount, if any, she is from time to time reasonably capable of earning in a week in work she is capable of undertaking if she were to engage in the most profitable employment, if any, reasonably available to her. In considering what is "the most profitable employment available" the Court has regard to sections 65(5) and 68. In deciding whether such work is "reasonably available to (the worker)", in my view, matters personal to the worker may be considered. In considering not dissimilar provisions in the South Australian legislation Mullighan J in Workers Rehabilitation And Compensation Corporation v James (1991) 56 SASR 414 said at page 425:

"...I have concluded that a consideration of the weekly earnings that a worker could earn in suitable employment that he has a reasonable prospect of obtaining necessarily involves matters other than the capacity of the worker for employment. It involves "suitable employment" as discussed in Percic v Broken Hill Pty Co Ltd as well as the reasonable prospect of obtaining such employment. Whether a worker has a reasonable prospect must involve considerations other than merely his capacity for employment. What must be established is whether there is reasonable prospect of obtaining the employment, which necessarily involves such factors personal to the worker which are relevant. A personal factor such as unjustifiable refusal to work would not be a relevant factor. The inability to travel to a distant location due to the need for treatment would be a relevant factor. It is the concept of reasonableness which is the safeguard. In cases where the issue arises there will be a line-drawing exercise. I think it would make nonsense of legislation of this nature if genuine and proper reasons for not taking employment were of no relevance."

This case went on appeal and the decision of Mullighan J was approved. In the appeal decision (reported at (1992) 57 SASR 365) Zelling AJ said at pages 393-4:

"This Act is tailored to the rehabilitation of the individual workman, with his individual needs, deficiencies, and personality.

Further, Parliament must be taken to know in 1986 that we are no longer in an age where the male is the sole breadwinner. In these days when both husband and wife work as a matter of routine, employment can hardly be "suitable" for the injured spouse, by forcing him to move elsewhere, if it reduces the family income to that of one earner, or otherwise disrupts the family pattern of earning, because all the family's ongoing commitments have been entered into on the basis of two continuing incomes. Injecting that sort of stress into the situation is hardly likely to help anyone's rehabilitation and that is what this Act is there to promote.

Similarly, with place of living, suppose the injured workman has had his name down for a Housing Trust house for years and just as his name comes towards the top of the list he has an industrial accident. Is his family to be deprived of the benefit of subsidised housing for which they otherwise qualify, simply because that puts the injured workman out of reach of a job which he could do if he stayed where he was paying full rental?

These are just two of many scenarios which could be envisaged. The Learned judge subsumed the solution of all these problems under the use of the word "reasonable", and I do not quarrel with his concept of reasonableness. What I do say is that in this day and age, "suitable" where used in this Act in relation to employment, must mean suitable in relation to the workman as an individual, and the old concepts of suitability which would oblige a man to go 400 miles from his wife and family just because there was a job at that distance that he could do (cf Roper v Commissioner for Railways (No 2) (1959) WCR 93) belong to the days when an employee was an economic chattel, and have no place in the philosophy or interpretation of this Act.

I entirely agree with the learned judge that a workman cannot change his residence simply to avoid working, and to stay on compensation....

Suitable employment means employment which the workman can do and which in the total circumstances of that injured workman, will promote his rehabilitation and re-integration into the work force.

In my view the words "reasonable" and "reasonably" where they occur in s35, subss (1) and (2)(a), merely underline the philosophy of the Act as I have endeavoured to set it out. I agree with the learned judge that in every case, reasonableness is a question of fact and degree."

Whilst Zelling AJ based his decision on the word "suitable" (which word does not appear in sections 65(2) and 68 of the Act), and whilst clearly section 65(5) of the Act does contemplate a worker having to move location for the purpose of employment, I consider that the general observations of both Mullighan J and Zelling AJ fit in with the philosophy of the NT Act and are relevant to the question of reasonableness. Workers are not chattels. In this day and age it is not uncommon for workers to change jobs and locations many times throughout their working lives. People change jobs and locations for many reasons. Some of these reasons maybe totally personal, whilst some may relate to factors associated with the employment itself. A worker who is unfortunate enough to get injured should not forego his or her choices and become a slave to the compensation provider. There must always be a balance and the overall philosophy of the Act must not be lost sight of.

97. I find on the evidence that up to and including the 10th day of July 1998:

97.1 The worker was performing modified duties with the employer;

97.2 That she was capable of undertaking that work;

97.3 That the work was reasonably available to her;

97.4 That the work would have continued to have been available to her after 10 July 1998 had she not resigned;

97.5 That she was earning $296 per week for this work.

98. Was this work reasonably available to her after 10 July 1998? The worker had moved to Warrego without a job in order to be with her husband. The worker was offered a job in the mine at Warrego which she accepted. There is nothing to suggest that the work she was doing had general application within the wider workforce, but appears to have been applicable to mining operations. Generally mining operations tended to be in remote locations. I do not know from the evidence when her ex-husband and child left Warrego. She had commenced a relationship with McGrice less than 6 months before. About 2 months before she had become engaged to McGrice. I know little of their financial or living arrangements. She was not being asked to relocate or change jobs, rather, the work available was the same modified duties that she had been doing for almost a year. She was capable of doing the work. An employer who is paying compensation is entitled to get some use or benefit out of a worker in return, provided that that is reasonable and within the worker's physical capabilities. She did not need to leave Warrego for treatment reasons. She was not leaving to pursue other reasonable job opportunities. In the circumstances of this case I am satisfied that the work she was doing continued to be reasonably available to her after 10 July 1998.

Her loss of earning capacity at the date of her resignation on 10 July 1998 is therefore:

($777.62 - $296) x 75% = $361.22

99. I find that working 20 hours per week in modified duties was the most profitable employment reasonably available to her as at 10 July 1998. In R.J. Brodie (Holdings) Pty. Ltd. v Pennell (1968) 117 CLR 665 @671 Menzies J said: "The provision of employment imports, of course, mutuality between the employer and the worker and it is not difficult to see that where it is the worker who is responsible for a lack of mutuality there is no failure on the part of the employer to provide employment." I respectfully agree with this. In my view, in choosing to resign as she did and move away from the location of her usual employment she made it impossible for (and therefore removed the obligation on) the employer to meet it's obligations under section 75A(1)(a) of the Act. That is not to say that the situation is irretrievable because as Mullighan J noted in Workcover Corporation (Plas-Tec Pty Ltd) v Grigor (1994) 62 SASR 283@287: " But as Kanoon v Cablemakers Australia Pty Ltd (1975) WCR (NSW) 268 shows, even mutuality destroyed by misconduct can be restored in time".

100. Therefore, on the face of it once the worker resigned on 10 July 1998 the employer should have continued to pay the worker the sum of $361.22 per week by way of weekly compensation until such time as these payments were increased, reduced or cancelled in accordance with the Act.

101. I note paragraph 5 of the amended Statement of Claim which asserts (and this is admitted in the defence) that on 12 June 1998 the worker was being paid $546.00 per week. I don't know from the pleadings or the evidence how this figure was calculated. I don't know whether this is the total that she was being paid (for work and top-up compensation). If it was the total then the worker may not have been receiving her proper entitlements. However, as this does not appear to form any part of the worker's claim I will not consider this matter further, or express any view.

102. It is clear from the evidence that the employer has paid no money to the worker since 10 July 1998 by way of weekly compensations. Why? It becomes clear from paragraph 8 of the defence and paragraph 12 of the counterclaim that the employer is relying on s 75B of the Act. As noted above the Form 5 was defective but in my view that does not stop an employer from properly raising or re-raising the issue in the pleadings.

103. Section 75 of the Act is in the following terms:

"(1) The purpose of this Division is to ensure the rehabilitation of an injured worker following an injury.

(2) For the purposes of subsection (1), "rehabilitation" means the process necessary to ensure, as far as is practicable, having regard to community standards from time to time, that an injured worker is restored to the same physical, economic and social condition in which the worker was before suffering the relevant injury."

Section 75A is in the following terms:

"EMPLOYER TO ENDEAVOUR TO FIND OR ASSIST INJURED WORKER TO FIND SUITABLE EMPLOYMENT, &c.

(1) An employer liable under this Part to compensate an injured worker shall -

(a) take all reasonable steps to provide the injured worker with suitable employment; and

(b) so far as is practicable, participate in efforts to retrain the worker.

Penalty: In the case of a body corporate - $3,000.

In the case of a natural person - $1,000 or imprisonment for 3 months.

Default penalty: In the case of a body corporate - $500.

In the case of a natural person - $50.

(2) An employer liable under this Part to compensate an injured worker must refer the worker to an alternative employer incentive scheme developed by the Authority where -

(a) the employer is unable to provide the worker with suitable employment under subsection (1); and

(b) the worker is a long-term incapacitated worker.

Penalty: In the case of a body corporate - $3,000.

In the case of a natural person - $1,000 or imprisonment for 3 months.

Default penalty: In the case of a body corporate - $500.

In the case of a natural person - $50.

(3) Where an injured worker for whose injury an employer is liable under this Part is employed by another employer under an alternative employer incentive scheme referred to in subsection (1), the first employer is liable to compensate the injured worker for any aggravation, acceleration or exacerbation of the injury that occurs within one year after the worker commences employment with the other employer.

(4) In subsection (2), `long term incapacitated worker' means a worker who is being paid compensation under section 65."

Section 75B is in the following terms:

"75B WORKER TO UNDERTAKE REASONABLE TREATMENT AND TRAINING, OR ASSESSMENT

(1) Where compensation is payable under Subdivision B of Division 3 to a worker, the worker shall undertake, at the expense of the worker's employer, reasonable medical, surgical and rehabilitation treatment or participate in rehabilitation training or, as appropriate, in workplace based return to work programs, or as required by his employer, present himself at reasonable intervals to a person for assessment of his employment prospects.

(1A)The employer of a worker who participates in a rehabilitation program or workplace based return to work program under subsection (1) must ensure that program is provided by an accredited vocational rehabilitation provider.

(2) Where a worker unreasonably fails to undertake medical, surgical, rehabilitation treatment or to participate in rehabilitation training or a workplace based return to work program which could enable him to undertake more profitable employment, he shall be deemed to be able to undertake such employment and his compensation under Subdivision B of Division 3 may, subject to section 69, be reduced or cancelled accordingly.

(3) Where a worker so required under subsection (1) unreasonably refuses to present himself for assessment of his employment prospects, he shall be deemed to be able to undertake the most profitable employment that would be reasonably possible for a willing worker with his experience and skill and who has sustained a similar injury and is in similar circumstances having regarding to the matters referred to in section 68, and his compensation under Subdivision B of Division 3 may, subject to section 69, be reduced or cancelled accordingly."

The preamble of the Act states:

"An Act to promote occupational health and safety in the Territory to prevent industrial injuries and diseases, to protect the health and safety of the public in relation to work activities, to promote the rehabilitation and maximum recovery from incapacity of injured workers, to provide financial compensation to workers incapacitated from industrial injuries or diseases and to the dependants of workers who die as the results of such injuries or diseases, to establish certain bodies and a fund for the proper administration of the Act, and for related purposes."

104. The Act clearly places an onus upon an employer to participate in the rehabilitation of a worker. In addition, as noted in the decision of Nieuwmans (supra) at page 13 the worker is under a duty to mitigate her loss.

105. In the instant case the employer has been most mindful of its obligations and up to the date the worker resigned appears to have acted most responsibly. I commend the employer for its efforts. Unfortunately not all employers seem to be as responsible.

106. Up to 10 July 1998 the employer provided to the worker a "workplace based return to work program" ("the program"). The program was professionally run, well supervised and well managed.

107. The program continued to be available to the worker after 10 July 1998, but the worker chose to resign her employment.

108. Pursuant to s 75B(1) it is clear that a worker has an obligation to participate in the program. There are therefore mutual obligations.

109. In order to come within section 75B(2) of the act the employer must satisfy me of each of the following matters on the balance of probabilities. Should the employer fail to satisfy me of any of the matters (1), (2), (3) or (7) then the employer would be wholly unsuccessful. If the employer satisfied me of each of the above matters but failed to satisfy me of matters (4), (5) or (6) then I would be unable to quantify the reduction and therefore the employer may be entitled to no formal order until such time as the matter was properly quantified. The matters which the employer must establish are that:

110. (1) there was a return to work program.

I am satisfied of this aspect.

(2) the worker failed to participate in the program.

I am satisfied that in deciding to resign on 10 July 1998 the worker clearly no longer wished to participate in the program. The program continued to be available to her and I am satisfied that the employer wanted her to continue in it. I therefore find that since 10 July 1998 the worker has failed to participate in the program.

(3) the program could enable her to undertake some employment, and what that employment is.

I consider it necessary for an employer to identify a particular employment, or type of employment. It would not generally be necessary for a particular job to be identified. However, in the instant case (because of the way the matter was pleaded) the employer has agreed that paragraph 12.9 of it's counterclaim is limited to positions available with it rather than any other employer. In the instant case the employer has identified the position of a laboratory assistant in the wet chem area. I note that it is only necessary that the program "could" (not "would") enable her to undertake this employment. The word "can" (the present tense of the word "could") is defined in the Concise English Dictionary (eighth edition) to mean "be able to, be potentially capable of".

I accept that the aim of the program was to get her back to a stage where she could work full time as a laboratory assistant. At the time of the resignation this had not been achieved, but the aim had not been totally abandoned, although it seems that the time was rapidly approaching when it might be.

Ms Garton (Occupational Therapist) gave evidence that the aim of the program was to achieve full hours work at as a laboratory assistant. She conceded (correctly) that in this case they had not achieved full hours. Full hours for the worker was 12 hours per day for 4 days. In October 1997 she felt that they still needed to keep that as the goal. However, by the time of the report of January 1998 (exhibit R13) Ms Garton agreed that she had abandoned her projection of 12 hours per day due to the worker's very slow progress. By the time the worker resigned she was doing 5 hours/day for 2 days, then having a day's break and doing 5 hours/day for 2 days. Ms Garton said that it had been decided that the worker should be doing no more than two consecutive days. By July 1998 Ms Garton agreed that it was quite clear that the worker's progress was not going to be significant from then on and they needed to review whether the worker should continue in laboratory assistant work or get another medical assessment.

Ms Garton further stated that in the duties the worker was doing she didn't think that she would be able to progress beyond 25 hours per week so she requested a medical assessment. On the evidence I find that the worker did not know at the time she resigned that this request had been made, although I find that she knew or ought to have known that one was likely.

The worker resigned and stopped undertaking the program before the medical assessment could be done.

In those circumstances, it appears to me that a final decision as to whether the program could enable the worker to perform full time duties as a laboratory assistant had not been reached, and was unable to be reached because of the worker's resignation and withdrawal from the program.

The employer bears the onus of satisfying me on the balance of probabilities that as at the date the worker resigned and ceased to participate in the program, the program could have (in the sense that it was still potentially capable of) enabled the worker to have returned to full time work as a laboratory assistant. On the evidence I am not satisfied of this to the necessary standard. On the contrary I consider that it was more probable than not that she couldn't return to full-time laboratory work in the foreseeable future even if she had stayed in the program. I therefore find that this requirement is not met. It would therefore follow that the employer's assertion that it is entitled to reduce or cancel weekly payments of compensation pursuant to section 75B(2) of the Act must fail. In the event that I am wrong on this aspect I will continue to consider the other necessary matters.

(4) the worker without the program had the capacity to earn $x per week.

At the time that she ceased the program she was earning $296 per week. I find that was her capacity to earn at the relevant time.

(5) the program could enable the worker to earn $y per week.

Again the word is "could" not "would". If the program could have enabled her to work full time as a laboratory assistant then she would have been able to work 48 hours in a 6 day cycle which as at the date of her resignation would have been paid at $14.80 per hour.

[(48 x $14.80) / 6] x 7 = $828.80 for a normal week.

However, I am not satisfied that the program could enable the worker to earn $828.80 per week. On the evidence I am satisfied that had the worker continued in the program she could have increased her hours up to 25 hours per week in the modified duties that she was doing. It therefore follows that she could have earned (25 x $14.80) $370 per week.

(6) $y is more than $x.

Clearly $370 per week is more than $296 per week.

And,

(7) the worker's failure to undertake the program was unreasonable.

In Fazlic v Milingimbi Community Inc. (1982) 38 ALR 424 the High Court (Stephen, Mason, Murphy, Aickin and Wilson JJ) considered whether under the NT Workmen's Compensation Act a refusal to have an operation should result in the losing of entitlement to further compensation. In a joint judgment Their Honours said at page 427:

"No doubt it will be but rarely that an employer does not succeed in establishing that a worker's refusal is unreasonable when the worker has allowed baseless fear to decide his choice, outweighing his knowledge of cogent factors favouring his undergoing an operation....

Any assessment of the reasonableness or otherwise of a worker's refusal of treatment must depend upon the worker's state of knowledge at the relevant time. This accords both with good sense and with authority. A worker's choice cannot be said to be unreasonable because he has failed to give effect to factors unknown to him. And in the case of complex medical or surgical procedures he will know little except what he is told. In the present case he was told very little indeed."

Their Honours went on to add at pages 428-429:

"It's concern is, rather, with whether, judged in the light of the medical advice given to the worker at the time and all the circumstances known to him and affecting him, his refusal is unreasonable.

It follows that in the present case the extensive expert medical testimony showing that the operation might reasonably have been performed was irrelevant to the point in issue, the reasonableness of the appellant's refusal, since the facts deposed to were never known to the appellant, who was aware only of the treating surgeon's reticent and, if anything, rather discouraging statement about the operation that was recommended. Moreover, the appellant had candidly confessed to his treating surgeon his fears regarding the operation and nothing had been said to dispel them. In those circumstances we cannot say that he was shown to have been unreasonable in refusing the operation and this despite the fact that the alternative facing the appellant was, as he had been told, that there would be no improvement in his condition."

I respectfully adopt these words and consider that they are instructive to the matter in hand. In deciding whether the worker's failure to undertake the program was unreasonable or not only the facts and knowledge of the worker at the time the decision was made is relevant. In my view, subsequent facts or opinions which were unknown to the worker at the relevant time are of no assistance.

111. In addition, the question of what is reasonable must be looked at in the context of the Act as a whole. As noted above there are mutual obligations created in the Act (both on the employer and the worker) with the aim of rehabilitating workers back into the workforce. This is in accordance with what appears to be the general policy of the Act, which is that it is a weekly compensation scheme with ongoing mutual obligations. The Act is not designed to be a lump sum "buy-out" scheme whereby workers are then left to their own devices. Lump sum settlements can only occur when (amongst other things) rehabilitation is complete. This reinforces the underlying philosophy that rehabilitation must be pursued until there is nothing more to be gained. In my view, a worker must actively and fully participate in the rehabilitation. Rehabilitation can take many forms. In the instant case it was a return to work program, plus a home exercise program, plus regular reviews and assessments.

112. On the evidence I find that the worker at all times fully co-operated with her rehabilitation to the full extent that she was reasonably capable of doing so. She did all of her home exercises even if they caused some pain or discomfort. She attended every appointment made for her (there being no evidence that she ever failed to attend) and there is no suggestion other than that she was fully co-operative with every medical practitioner and rehabilitation provider. She attended the return to work program and performed every task required of her within her limitations. Accordingly, up to the date of her resignation the worker had fulfilled her obligations as regards to rehabilitation. Has the employer established on the balance of probabilities that her decision not to continue with the return to work program was unreasonable?

113. On the evidence I consider that the worker's state of knowledge at the time she decided to retire was:

* she was injured on 24 July 1996

* she had an operation on 2 April 1997

* in about July 1997 she spent about 3 weeks in Adelaide for intensive treatment from a hand therapist

* on 14 August 1997 she returned to work doing very light duties for 3 hours on each Tuesday and Thursday

* on 20 October 1997 she increased her hours to 3 hours on 3 days per week (still on light duties)

* there was speculation that the Warego mine would be closing

* Mr Smith told a meeting (at which the worker was in attendance) that the mine may be closing

* Mr Smith told the same meeting that some workers would be tried to be found alternative jobs (there was no evidence that it was ever suggested to the worker that she might be one of these people)

* Mr Smith told the same meeting that there may be some redundancies

* she had tried to apply for a redundancy but had been rejected on the basis that she was on compensation

* by 7 July 1998 she had increased her hours to 5 hours on 2 consecutive hours with a day off and then a further 5 hours on the next 2 days (still on light duties)

* it was unlikely that she would be able to return to full-time work in the foreseeable future

* it was unlikely that she would be able to return to unrestricted duties in the foreseeable future, if ever

* her fiance was leaving Warego on 10 July 1998

* she either had to resign or stay in Warego on the program

* if she resigned she would still be entitled to be paid for medical and related expenses for her injury

* if she resigned she would lose her entitlement to weekly payments (as that was what she was told by the employer)

* if she stayed and the mine closed she did not know (as there is no evidence that she was told) what would happen to her position or whether the program would be continued (and if so where and in what form)

114. In my view, whether a decision is unreasonable is one of balance on the facts of each case. Therefore the stronger the prognosis of a return to work program being of real benefit the more likely a failure to participate in it will be unreasonable even if there are personal reasons for the failure. "Unreasonableness" falls to be considered in the context of the Act as a whole, and personal reasons may in a particular case be secondary to the mutual rehabilitation obligations created in the Act. However, if matters personal to the worker were intended to have no relevance then Parliament could have left the word "unreasonably" out of section 75B(2) altogether.

115. The Act is beneficial legislation which promotes the return to paid employment as one of it's goals. It is also a compensation scheme which is based on ongoing income maintenance until such time as the worker ceases to have a loss of earning capacity as the result of an injury. The Act has deliberately moved away from the payment of lump sums whereby a worker is then set adrift to fend for him or herself (other than in the limited circumstances permitted by section 74).

116. On the facts of this case I am not satisfied that the worker's failure herein was unreasonable. If the evidence had been that the Warego mine would continue operating for a reasonable and certain period; and the program would continue to be available to the worker; and if she continued in the program she could return to some specified full-time job (within a reasonable time) then I may have been satisfied that her failure was unreasonable despite her personal circumstances. If the evidence had been that the worker was told that even if the Warego mine closed the program would continue at the Tanami mine; and if she continued in the program she could return to some specified full-time job (within a reasonable time) then I may have been satisfied that her failure was unreasonable. There is no evidence from which I could find that this was in fact the case or that she was told this.

117. She had been on the program for some considerable time (about 11 months) and a clear plateau had been reached. No further increase in her capacity to work appeared likely in the foreseeable future. She was still doing very restricted duties. She was still working very reduced hours (less than 50% of her pre-injury hours). I am not satisfied that had she continued with the program that she could have expected to return to any work with the employer beyond what she was then doing, apart from increasing her hours further. In fact the break from the program appears to have helped her rehabilitation. I am not satisfied that her decision to leave Warrego and be with her fiance was unreasonable in all the circumstances.

118. I therefore find that the workers entitlement to weekly payments of compensation had not been validly cancelled in accordance with the Act. In this regard the employer has failed to satisfy me of the matters alleged in the Form 5 or in it's pleadings. I therefore find that the cessation of payments to the worker on 10 July 1998 was wrong and should not have occurred.

119. The question remains as to what the employer should have been paying the worker. As noted above I have found that the worker had returned to work with the employer (this being part-time light duties) and was being paid $296 per week. This work was still reasonably available to her after 10 July 1998 and was the most profitable work then available to her. In my view therefore as at 10 July 1998 her loss of earning capacity was her normal weekly earnings (as indexed in accordance with the Act) less $296, multiplied by 75%. The parties have agreed various figures and put these forward as an agreed schedule. I thank both counsel for their assistance.

120. I find that from 11 July 1998 until 31 December 1998 the employer should have continued to pay the worker the sum of $361.22.

121. I find that from 1 January 1999 until the conclusion of the hearing the employer should have been paying the worker the sum of $387.51 per week.

122. I find that the employer should have continued to pay the worker her entitlements under the Act after the conclusion of the hearing and continuing until such time as they are validly cancelled or reduced under the Act. I am unable to be more specific in relation to this period.

123. There is also a claim for interest by the worker for interest under sections 89 and 109 of the Act. As regards section 89 it is unnecessary in my view for the Court to make any order as a worker is entitled as of right to interest under this section for any late payment. My findings are such that the worker should have continued to be paid each fortnight. The calculation of her interest entitlement is a simple mathematical calculation under the Act, but this calculation cannot be made until her due payment for each period is actually made.

124. Under section 109 I need to be satisfied that there has been unreasonable delay by the employer. On the evidence before me and given that it was the worker who resigned I think that such a finding would be difficult to make in this matter. However, neither counsel has addressed me on this aspect of the claim so I will give them that opportunity before making any final orders.

125. I will hear the parties on the question of costs, interest and any consequential orders or findings that they feel I should make.

Dated this 21st day of January 2000.

Mr DAYNOR TRIGG

STIPENDIARY MAGISTRATE