5.5.8.2 Make payment to DES-DMS and worker
Once the worker is aware that they are going to be paid a lump sum they need to inform the DES-DMS.
A worker may also apply to the DES-DMS for a release from liability to pay the costs of their VRS Vocational Rehabilitation Services program on the grounds of ‘special circumstances’ before the amount indicated in the Final Notice of Charge is deducted from their lump sum, impairment benefit or common law damages payment.
Once the Agent has been put on notice by the DES-DMS, a lump sum entitlement cannot be paid to the worker until the Agent has received a Final Notice of Charge and any money owed has been deducted and paid to the DES-DMS.
When an Agent becomes aware that the worker is entitled to a lump sum payment they should advise the worker in writing that they can seek a release from the DES-DMS liability.
Agent has received a DES-DMS notice
If an Agent has received any of the DES-DMS notices and the worker becomes entitled to a lump sum payment then payments cannot be paid to the worker until the amount owed to the DES-DMS has been deducted or the worker has been released from liability.
Agent has not received a DES-DMS notice
If none of the DES-DMS notices have been received by an Agent then there is no obligation to contact or deduct the DES-DMS before paying a lump sum, impairment benefit or common law damages payment to a worker.
Agent has not received a final notice of charge
Once an Agent becomes aware that the worker is entitled to a lump sum, impairment benefit or common law damages payment and only a Notice of Intent to Recover Costs or an Interim Notice of Charge has been received, the Agent is required to follow up with the DES-DMS for the Final Notice of Charge before making any payment.
DES-DMS has agreed to release worker's liability
If the DES-DMS have agreed to release the worker from liability to pay the VRS program costs they will advise the worker of this in writing.
Where the Agent has received a copy of the DES-DMS release the Agent can pay the full amount of the lump sum, impairment benefit or damages payment to the worker.
If the Agent has not received a copy of the DES-DMS release at the time they are ready to make the payment they need to deduct the amount on the Final Notice of Charge.
In circumstances where the release has been received from the worker after the payment has been processed, the Agent must advise the worker to seek reimbursement directly from the DES-DMS.
DES-DMS rejects worker's request to release liability
If the DES-DMS has rejected the worker’s request to release them from liability for the VRS program costs, the Agent needs to deduct the amount specified from the impairment benefit, lump sum or common law damages payment and pay the balance to the worker.
If the worker has a current entitlement to medical and like services, the Agent should then write to the worker inviting them to seek reimbursement of the costs of the VRS program as a medical and like expense.
Emergency cheque
When there is a requirement to deduct a DES-DMS payment from the lump sum, impairment benefit or common law damages payment, these payments are to be processed as an Emergency Cheque.
This process is to be used only if at the time the Agent is ready to make the payment:
- the worker’s appeal to the DES-DMS for a release from liability to pay the costs of the worker’s VRS program on the ground of ‘special circumstances’ has been rejected
- the worker has not received a copy of the workers response from the DES-DMS to the request for a release from liability to pay the costs of the worker’s VRS program.