as the Court decision shows Alan was not in employment for all of the 12 months before his accident. I wonder if Alan had reported his correct earnings?
53. Relevant earnings---(1) Subject to this Act, for the purpose of determining the amount of any
earnings related compensation payable to an earner, or payable at any time to any dependant of
such an earner, the amount of his relevant earnings shall be such amount as, in the opinion of the
Corporation, would, at the time of the accident, fairly and reasonably represent his normal average
weekly earnings, having regard to such information as the Corporation may obtain regarding his
earnings before the time of the accident and his earnings at the time of the accident, and the period
of his residence in New Zealand before the time of the accident and his work history, and such
other relevant factors as the Corporation thinks fit.
(2) If the earner was an employee at the date of the accident and was not then also a self-employed
person and had not been a self-employed person at any time during the period of 12 months
immediately preceding the date of the accident, in fixing his relevant earnings under subsection (1)
of this section,---
(a) The Corporation may have regard, in the first place, to the amount of his weekly earnings as
an employee at or about the time of the accident, or (if the Corporation in its discretion so
decides) the amount of his earnings as an employee at or about the time of the accident when
converted in such manner as the Corporation considers appropriate to a weekly basis; but
(B)/> If, in the opinion of the Corporation, the amount ascertained
under paragraph (a) of this subsection would not, at the time of
the accident, properly represent his normal average weekly
earnings, the Corporation may then have regard to the amount of
his average weekly earnings during the period of 28 days
immediately preceding the date of the accident, or such part or
parts of that period as the Corporation may consider as
appropriate for the purpose; but
© If, in the opinion of the Corporation, the amount ascertained
under paragraph (B)/> of this subsection also would not, at the
time of the accident, properly represent his normal average
weekly earnings, the Corporation may then have regard to his
average weekly earnings during the period of 12 months
immediately preceding the date of the accident or such part or
parts of that period as the Corporation may select for the
purpose:
Provided that nothing in this subsection shall preclude the
Corporation from having regard also to such other factors as it may
consider relevant for the purpose of subsection (1) of this section.
(3) If the earner was a self-employed person at the date of the
accident (whether or not he was also an employee at the date of the
accident) or if the earner had been a self-employed person at any time
during the period of 12 months immediately preceding the date of the
accident, the Corporation, in fixing his relevant earnings under
subsection (1) of this section, may have regard to all or any of the
following factors, as it thinks appropriate for the purpose:
(a) His earnings as a self-employed person during his financial year
last ended before the day immediately following the date of the
accident, or, if the amount of those earnings is not for the
time being readily determinable, such sum as may be estimated by
the Corporation as fairly and reasonably representing those
earnings:
(B)/> His earnings as an employee (if any) during that financial year
and his earnings as a self-employed person during that financial
year, or, if the amount of those earnings is not for the time
being readily determinable, such sum as may be estimated by the
Corporation as fairly and reasonably representing those
earnings:
© The average amount of his earnings as a self-employed person
during any of the periods of 2 or 3 or 4 consecutive financial
years last ended before the day immediately following the date
of the accident, or, if the Corporation, in the exercise of its
discretion, so decides, during any one or more of those
financial years which it may select as appropriate for the
purpose:
(d) His earnings as an employee (if any) at or about the time of the
accident, or during the period of 12 months immediately
preceding the date of the accident, or during such part or parts
of that period as the Corporation may select as appropriate for
the purpose:
(e) His earnings as a self-employed person (as determined or estimated
by the Corporation) during the period of 12 months immediately
preceding the date of the accident, or during such part or parts
of that period as the Corporation may select as appropriate for
the purpose, if sufficient information, including accounts, is
furnished to the Corporation to enable it to determine or
estimate the amount of his earnings as a self-employed person
during that period or the said part or parts of that period, as
the case may be:
Provided that nothing in this subsection shall preclude the
Corporation from having regard also to such other factors as it may
consider relevant for the purpose of subsection (1) of this section.
(4) If the relevant earnings of an employee as determined in accordance with the foregoing
provisions of this section would be significantly more or significantly less than the average weekly
amount of the earnings as an employee that he would, in the opinion of the Corporation, have
derived during the period of short term incapacity if he had not suffered the injury, then,
notwithstanding anything in the foregoing provisions of this section, the Corporation may, if it
thinks fit, assess his relevant earnings at that amount. Any assessment made under this subsection
shall apply only for the period of short term
incapacity.
(5) The Corporation may, from time to time, in so far as it thinks fit
to do so,---
(a) Fix a minimum amount of relevant earnings for any person who,
either, having engaged to work under a contract of service, has
not commenced to work under that contract, or was not in regular
work in paid employment, and had made positive arrangements and
preparations to take up such work in New Zealand (either as an
employee or a self-employed person) at a future time, being not
more than 12 months after the date of the accident, and
satisfies the Corporation to this effect:
(B)/> Having regard to the liability imposed on self-employed persons
for payment of levy under Part IV of this Act, fix a minimum
amount of relevant earnings for self-employed persons:
© Having regard to that liability, and to such other considerations
as the Corporation may think relevant, fix a minimum amount of
relevant earnings for any class or group of self-employed
persons, whether those persons are classified or described by
reference to the nature of their employment, or to the hours in
which they have normally engaged in that employment before the
accident, or to the period of time for which they have been
engaged in that employment, or to the amount or rate of levy
imposed on them, or by reference to any combination of those
factors, or are classified or described in any other manner
whatsoever that the Corporation thinks fit,---
and may from time to time vary, amend, or revoke, in whole or in part,
any determination made under this subsection.
(6) The Governor-General may, from time to time, by Order in Council
specify a percentage or amount by which the amount, for the time being,
of any relevant earnings required to be ascertained under this section
shall increase. Any such Order in Council may be made in relation to all
such relevant earnings or to such only of those relevant earnings as may
be specified in the order, and may prescribe any limitation as to its
effect, whether by way of reference to any persons or classes of persons
or to the time at which an accident has happened or to the purposes for
which the increase is to apply, or by way of any other specification,
stipulation, condition, inclusion, or exclusion whatsoever. The Order in
Council or any part or parts thereof may be made so as to come into
effect on a date or dates to be specified therein in that behalf, being
either the date of the Order in Council or any other date or dates,
whether before or after the date thereof.
(7) Subject to any limitations as to the effect of an Order in Council
made under subsection (6) of this section, where the relevant earnings
of an injured person are increased pursuant to subsection (6) of this
section, the amount of those relevant earnings, as for the time being so
increased, shall on and after the date on which the Order in Council (or
the relevant part thereof) comes into effect, be the amount of his
relevant earnings ascertained in accordance with this section where that
amount is required to be ascertained for the purpose of---
(a) Determining his loss of earning capacity for the time being in
respect of any period of incapacity to which section 59 of this
Act applies; and
(B)/> Assessing the weekly amount of earnings related compensation in
respect of permanent loss of earning capacity where the
assessment is made under section 60 of this Act; and
© Determining the minimum rate of compensation for the time being
payable to him under section 61 of this Act; and
(d) Applying sections 62 and 63 of this Act.
(8) Notwithstanding the foregoing provisions of this section, in any
case where a person suffers personal injury by accident during the
period for which his cover is deemed under section 69 of this Act to
extend, and his relevant earnings are determined under this section, the
amount of his relevant earnings shall be so determined and subsection
(6) of this section shall apply as if the accident had happened on the
day immediately preceding the first day of that period.
AMDD S7 of 1885 No 66 to read
(8) Notwithstanding the foregoing provisions of this section, in any case where a person suffers
personal injury by accident during the period for which his cover is deemed under section 69 of this
Act to continue to be an earner, and his relevant earnings are determined under this section, the
amount of his relevant earnings shall be so determined and subsection (6) of this section shall apply
as if the accident had happened on the day immediately preceding the first day of that period.
(9) Where any period of an earner's incapacity for work does not commence on the date of the
accident, and the Corporation is of the opinion that relevant earnings ascertained in accordance with
the foregoing provisions of this section do not fairly and reasonably represent the earner's normal
average weekly earnings at the time of the commencement of the period of incapacity for work, the
Corporation may, notwithstanding the foregoing provisions of this section, determine an amount
which, in its opinion, would fairly and reasonably represent his normal average weekly earnings at
the time of the commencement of the period of incapacity for work, having regard to such
information as it may obtain regarding his earnings before the time of the commencement of the
period of incapacity for work and his earnings at the time of the commencement of that period, and
the period of his residence in New Zealand before the time of the period of incapacity for work and
his work history, and such other relevant factors as the Corporation thinks fit; and any amount so
determined shall be treated as if it was his relevant earnings for the purpose of assessing earnings
related compensation during the particular period of incapacity for work:
Provided that any determination made under this subsection shall not bind or prejudice the
Corporation or limit or restrict its discretions or powers with regard to any assessment or
determination of that person's relevant earnings or loss of earning capacity during any other period
of his incapacity for work to which the determination does not relate.
(10) Notwithstanding anything in this section, the Governor-General
may, from time to time, by Order in Council make regulations varying the
provisions of this section in relation to the determination of the
relevant earnings of a member of the Armed Forces of New Zealand serving
in a war or emergency who becomes entitled to compensation under section
32 of this Act; and in so doing may prescribe the extent and the manner
(if any) to or in which his earnings as a civilian during any period or
periods before he became a member of those Armed Forces serving in that
war or emergency may be taken into account in determining those relevant
earnings.
Cf. 1972, No. 43, s. 104; 1975, No. 136, s. 11 (1)