Compensation or damages

The payment of compensation or damages is paid in lieu of wages for a number of weeks. No benefit or a benefit at a reduced rate may be paid for the period the payment of compensation or damages represents.

For example a client receives compensation of $1600 for unjustified dismissal, their weekly wage was $400 per week. This compensation payment represents 4 weeks wages and must be taken into account when determining the benefit commencement date.

Note where a client receives the payment of compensation or damages in lieu of wages after the benefit has commenced, then the initial stand down and commencement date must be reassessed.

A client may receive a one off personal payment for humiliation, loss of face, injury to feelings. Personal payment is not paid in lieu of wages.

Personal payment for humiliation, loss of face, injury to feelings, must be treated as a capital payment only and not income. It does not form part of the income received in the 26 or 52 weeks prior to commencement of benefit.

For more information see:

• Jobseeker Support Personal grievance or legal proceedings against employer
• Accident Compensation payments

For more information on charging income, see:

• Changes and reviews, Charging income in relevant Main benefit