On 3 February 2025, the Tasmanian Civil and Administrative Tribunal published its decision in Randstad Pty Ltd v DKL [2025] TASCAT 21, determining that paid parental leave payments under the Paid Parental Leave Act 2010 (Cth) do not affect an injured worker’s entitlement to weekly payments under the Workers Rehabilitation and Compensation Act 1988 (Tas). This issue had not previously been considered in the context of the Tasmanian workers compensation scheme.

The decision concerned an application by an employer under s 88 of the Tasmanian workers compensation legislation for weekly payments of workers compensation to be suspended for the duration of the worker’s entitlement to Commonwealth parental leave payments. The employer’s argument was that, had the work-related injury not occurred, the worker would have foregone her usual wages and relied upon parental leave payments while on parental leave.

The Tribunal dismissed the employer’s referral. In doing so Deputy President Grueber determined that parental leave payments are not ‘earnings’ for the purposes of the workers compensation legislation but are instead a benefit that, pursuant to s 98 of the Commonwealth legislation, should not be taken into account for the purposes of state workers compensation legislation. The Tribunal also accepted that pregnancy and childbirth are a supervening event that is irrelevant to a worker’s entitlement to workers compensation.

The decision confirms that workers compensation payments must continue in accordance with a worker’s medical certification if a worker takes parental leave and receives Commonwealth parental leave payments. We recommend obtaining legal advice if you are uncertain about entitlements to weekly workers compensation payments.

If you have any questions about this article or wish to make an enquiry, please contact our insurance litigation team.