Where in respect of an
injury an action is brought by a worker for damages independently of this Act
against his employer or against some other person (referred to in this section
as the defendant ) or against both of them —
(a) if
the court decides the action should succeed, then after damages have been
ascertained but before judgment is entered for the worker in the action, the
worker shall be given a reasonable opportunity to elect whether to have
judgment or to discontinue the action;
(b) if
the action proceeds to judgment, including the acceptance of an offer to
consent to judgment, against the employer only or against the employer and the
defendant, there shall be deducted from the amount of the judgment and be paid
to the employer a sum representing the amount (after apportionment in respect
of any contributory negligence of the worker) actually recoverable by the
worker by way of weekly or lump sum compensation, medical and other expenses
paid pursuant to this Act, but where liability is apportioned between the
employer and the defendant the defendant’s liability to pay to the
worker shall be reduced accordingly;
(c) if
the action proceeds to judgment, including the acceptance of an offer to
consent to judgment, against the defendant only or is settled by the
acceptance of money paid into court by the defendant, the payments and
expenses referred to in paragraph (b) shall be a first charge on the judgment
or the amount of money paid into court and the defendant shall be bound to pay
the amount of the compensation, and medical and other expenses to the employer
and the judgment shall be pro tanto discharged by such payment, or the amount
due under the charge shall be paid out of court to the employer or his
authorised agent, as the case may be;
(d) if
the action is discontinued the worker shall pay the costs of the employer or
of the defendant or of each of them or such part of those costs as the court
thinks fit;
(e) if
the action proceeds to judgment, including the acceptance of an offer to
consent to judgment, against the employer or the defendant or both or is
settled by the acceptance of money paid into court by the employer or the
defendant or by both of them, the worker shall not commence or continue
proceedings for, or in relation to, compensation under this Act in respect of
the same injury;
(f) if a
worker’s claim for damages against the employer or the defendant is
settled by agreement otherwise than by a judgment, an acceptance of an offer
to consent to judgment, or an acceptance of money paid into court —
(i)
the employer or the defendant shall file a memorandum of
the terms of the settlement with the Director within 3 months of the date of
its execution by the worker;
(ii)
the worker shall not commence or continue a claim for
compensation under this Act in respect of the same injury unless the Director
disapproves of the settlement within 6 weeks of the agreement for settlement
being filed with the Director;
(iii)
the Director shall not disapprove of the agreement unless
he is satisfied the agreement was induced by fraud or misrepresentation or
that it would clearly be for the worker’s benefit to disapprove of it;
(iv)
the Director if he disapproves of the settlement shall
serve notice in writing of his disapproval on each of the parties to the
settlement of his decision and of the reasons for his disapproval by pre-paid
post to the address of the party set out in the settlement or the last known
address of a party, within 14 days of the making of his decision;
(g)
where a claim for compensation is commenced or continued after the Director
disapproves of a settlement referred to in paragraph (f), the amount recovered
or recoverable under such settlement shall be brought into account in
reduction of the worker’s entitlement to compensation;
(h) Part
III Division 7 does not apply to an agreement for settlement referred to in
this section.
[Section 92 amended: No. 48 of 1993 s. 28(1); No.
42 of 2004 s. 69, 146 and 147.]