Landmark win for injured worker: workers’ compensation weekly payments reinstated

In late 2025, Hall Payne Lawyers acted for an injured worker in a significant decision handed down by the Tasmanian Civil and Administrative Tribunal (TASCAT). The case, KC v Devonfield Enterprises Inc (No.2) [2025] TASCAT 196, confirms and strengthens the protections available to injured workers whose weekly compensation has been wrongly terminated by their employer.

This is a landmark decision for Tasmanian workers, clarifying how employers may (and may not) lawfully terminate weekly payments under section 86 of the Workers Rehabilitation and Compensation Act 1988 (the Act).

Section 86 of the Act provides for an employer to lawfully terminate weekly payments if the worker unreasonably refuses or fails to do something required under the Act. For example, if a worker:

• refuses to attend a medical examination as required; or
• fails to participate in a return-to-work program.

Background to workers’ compensation claim

Our client, “KC”, was employed by Devonfield Enterprises (Tasmania) as a team leader in disability support services. He sustained a serious lower back injury at work in May 2023 and was unable to perform his usual duties. KC lodged a workers’ compensation claim, which was initially accepted and weekly payments commenced.

After surgery and a gradual return to work on reduced hours and modified duties, KC’s back symptoms persisted.

Despite continuing to provide valid medical certificates showing ongoing incapacity for his physical injury, the employer terminated his weekly payments on the basis that he had “returned to work”. Later, after a separate psychological claim was disputed, the employer maintained that KC had no further entitlement to compensation for his physical injury.

As a result, KC went without income support for many months while still experiencing significant incapacity. Hall Payne Lawyers, on behalf of KC, filed a referral under section 42 of the Act to challenge the termination of workers’ compensation benefits and seek reinstatement of his weekly payments.

The Tribunal’s findings

Deputy President RM Grueber found that Devonfield Enterprises was not entitled to permanently terminate the worker’s weekly payments under section 86(1) of the Act.

The Tribunal held that:

• the employer’s power to terminate or reduce weekly payments under section 86(1)(a) or (b) only applies to the period of earnings (that is, a set period or periods of time that the worker may have returned to work and received wages) - not permanently;
• if a worker’s capacity later decreases or their earnings fall, their right to weekly payments automatically resumes within the same overall period of incapacity;
• absent a determination under section 81A or lawful termination of weekly payments under section 86, the employer bears the onus of proving that a worker is no longer entitled to compensation. This is the case, even where the worker has initiated the referral to the Tribunal;
• a worker’s entitlement to compensation is not “interrupted” by any non-compensable injury; that is, if a worker has an accepted workers’ compensation claim due to a workplace injury and later suffers a non-work-related injury, workers’ compensation benefits still continue for the original workplace injury.

Accordingly, the Tribunal ordered that weekly payments be reinstated, with backpay to be calculated, and the employer to meet the worker’s costs of the referral to the Tribunal.

What this decision means for injured workers

This case builds on and applies the reasoning in SE v Crown Equipment Pty Ltd [2025] TASCAT 195, another case clarifying section 86 of the Act. Together, these decisions establish that:

• employers cannot “permanently terminate” a worker’s weekly compensation merely because the worker had a brief period of higher earnings or partial return to work;
• workers with fluctuating or partial incapacity remain entitled to compensation unless the employer lawfully terminates payments under other provisions (such as section 86(1)(c) or section 88*);
• the Tribunal continues to interpret Tasmania’s workers' compensation laws in a manner consistent with their beneficial purpose.

* Section of the Act provides additional grounds for termination of weekly payments. For example, where the injured worker refuses to undergo reasonable medical treatment or leaves Tasmania permanently.

This outcome is a major victory for injured workers across Tasmania, confirming that employers must act lawfully and evidence-based when ceasing weekly compensation.

Hall Payne Lawyers is proud to have represented KC in achieving this important result. Our client’s persistence has resulted in a ruling that will assist countless other injured workers facing similar unlawful termination of weekly payments.

Get help from a workers’ compensation lawyer

If your weekly payments have been reduced or terminated, or you’re unsure about any of your workers’ compensation entitlements, our experienced team can help. We have extensive experience acting for injured workers in complex disputes before TASCAT and across Australia.

Contact Hall Payne Lawyers today for expert advice on your rights under the Workers Rehabilitation and Compensation Act 1988.

Contacting Hall Payne Lawyers

You can contact us by phone or email to arrange your consultation; either face-to-face at one of our offices, by telephone or by videoconference consultation.

Phone: 1800 659 114
Email: general@hallpayne.com.au