(1) If a person appears to be liable:
(a) to pay damages to an employee in respect of an injury to the employee, or in respect of the loss of, or damage to, property used by the employee, being an injury, loss or damage in respect of which an amount of compensation has been paid under this Act; or
(b) to pay damages to a dependant of a deceased employee in respect of the death of the employee, if that death resulted from an injury in respect of which an amount of compensation has been paid under this Act;
the employer may, by notice in writing given to the person, require that:
(c) if the person agrees to pay damages to the employee in respect of the injury, loss or damage or to the dependant in respect of the death; or
(d) if damages against the person are awarded to the employee in the proceedings instituted in respect of the injury, loss or damage, or to the dependant in proceedings instituted in respect of the death;
the person pay to the employer so much of the amount of the damages as does not exceed the amount that would be payable by the employee or dependant to the employer under section 58 if the damages had been paid to the employee or dependant.
(2) Subject to subsection (3), if:
(a) a person has agreed:
(i) to pay damages to an employee in respect of an injury to the employee, or in respect of the loss of, or damage to, property used by the employee, being an injury, loss or damage in respect of which an amount of compensation has been paid under this Act; or
(ii) to pay damages to a dependant of a deceased employee in respect of the death of the employee, if that death resulted from an injury in respect of which an amount of compensation has been paid under this Act; or
(b) damages against a person have been awarded:
(i) to an employee in proceedings instituted in respect of an injury to the employee or in respect of the loss of, or damage to, property used by the employee, being an injury, loss or damage in respect of which an amount of compensation has been paid under this Act; or
(ii) to a dependant of a deceased employee in proceedings instituted in respect of the death of the employee, if that death resulted from an injury in respect of which an amount of compensation has been paid under this Act;
the employer may, by notice in writing given to the person, require the person to pay to the employer so much of the amount of the damages as does not exceed the amount that would have been payable by the employee or dependant to the employer under section 58 if the damages had been paid to or in respect of the employee or dependant.
(3) If, before a notice under subsection (2) was received by a person, the person had paid to or in respect of the employee or dependant, all or part of the damages to which the notice related:
(a) if all of the damages had been paid--the notice has no force or effect; or
(b) if part only of the damages had been paid--the reference in that subsection to the amount of the damages is to be read as a reference to so much of that amount as had not been paid.
(4) If a person fails to pay an amount to the employer in accordance with a notice under this section, the employer may recover that amount from the person as a debt due to the employer.
(5) Payment of an amount to the employer by a person in accordance with a notice under this section is, to the extent of the amount paid, a discharge of the liability of that person to the employee or dependant and of the liability (if any) of the employee or dependant to the employer under section 58.
(6) In this section:
"person" does not include the employer or an employee.