---
title: "Advise the worker on a commutation or a statutory lump-sum election"
url: "https://ailawframework.com/practice/personal-injury-and-compensation/advise-the-worker-on-a-commutation-or-a-statutory-lump-sum-election"
type: "task"
site: "AI Law Framework"
id: "A21-WC20261023-9"
practice_area: "Personal Injury & Compensation (workers compensation, CTP/TAC, medical negligence)"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-25"
---

# Advise the worker on a commutation or a statutory lump-sum election

> From the assessment, the payment history and the proposed amount, using a firm-controlled tool, table the conditions the opened page states for a commutation or a lump-sum election, and mark each condition met, unmet…

Canonical page: https://ailawframework.com/practice/personal-injury-and-compensation/advise-the-worker-on-a-commutation-or-a-statutory-lump-sum-election  
Last reviewed: 2026-10-25

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Personal Injury & Compensation (workers compensation, CTP/TAC, medical negligence)](https://ailawframework.com/practice/personal-injury-and-compensation.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the assessment, the payment history and the proposed amount, using a firm-controlled tool, table the conditions the opened page states for a commutation or a lump-sum election, and mark each condition met, unmet or unknown. Do not advise the worker to accept, and do not write the agreement. |
| What the lawyer must review | Decide whether the worker should give up statutory rights, and write the advice. Check every condition on the opened page before any agreement is signed. In Queensland, state the under-20-per-cent choice and the 20-per-cent-or-more path separately. Health and wage records stay in a firm-controlled tool. Apply ASCR r 9, APP 11, and the notifiable-breach test. |
| Written for / versions | 3 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

The lawyer checks the output against the file and the linked sources before it is used or sent.

- What the AI does: From the assessment, the payment history and the proposed amount, using a firm-controlled tool, table the conditions the opened page states for a commutation or a lump-sum election, and mark each condition met, unmet or unknown. Do not advise the worker to accept, and do not write the agreement.
- What the lawyer does: Decide whether the worker should give up statutory rights, and write the advice. Check every condition on the opened page before any agreement is signed. In Queensland, state the under-20-per-cent choice and the 20-per-cent-or-more path separately. Health and wage records stay in a firm-controlled tool. Apply ASCR r 9, APP 11, and the notifiable-breach test.
- Who reviews: Lawyer competent in statutory workers compensation
- Basis: Checked against the linked sources on 23 October 2026. Confirm the current instrument before reliance.
- Why: The level reflects what the work is, the consequence of an error, and how much the lawyer must check on every file.

## Checks the lawyer makes

1. Read the notice or the proposed agreement against the conditions. Do not rely on the insurer's summary.
2. Do not describe a Victorian impairment benefit as ending weekly payments. The opened page says it is separate.
3. In New South Wales, do not treat an unapproved agreement as effective. Approval by the President is required.
4. State, in the advice, what claim is given up, including any later work-injury damages claim where WC8 says that is the result.

## Notes

- Section 87EA(1) of the Workers Compensation Act 1987 requires at least 15 per cent permanent impairment, assessed under Part 6 or the 1998 Act, Chapter 7, Part 7, and also requires the permanent impairment compensation to have been paid, at least two years since the first weekly-payments claim, injury management and return to work exhausted, regular weekly payments through the preceding six months, a continuing weekly entitlement, and no termination under section 48A of the 1998 Act. Subsection (2) is the prescribed-class path. WC8 does not restate the 15 per cent.
- The tool does not write the advice and does not choose the option.
- If health or wage records leave the firm-controlled tool, decide whether a Privacy Act 1988 (Cth) breach is notifiable.

## Sources

- [WorkSafe Victoria: permanent impairment benefit](https://www.worksafe.vic.gov.au/permanent-impairment-benefit) (checked 2026-10-23)
- [WorkSafe Queensland: lump sum payments](https://www.worksafe.qld.gov.au/workers-compensation/compensation-claims/payments-and-support/lump-sum-payments) (checked 2026-10-23)
- [WorkCover Queensland: lump sum payments for permanent impairment](https://www.workcoverqld.com.au/claims-and-payments/payments/lump-sum-payments-for-permanent-impairment) (checked 2026-10-23)
- [Workers' Compensation and Rehabilitation Regulation 2025 (Qld)](https://www.legislation.qld.gov.au/view/whole/html/inforce/current/sl-2025-0116) (checked 2026-10-23)
- [Personal Injury Commission: Procedural Direction WC8, commutations](https://www.pi.nsw.gov.au/resources/procedural-directions/procedural-direction-wc8-commutations) (checked 2026-10-23)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [New South Wales](https://ailawframework.com/practice/personal-injury-and-compensation/advise-the-worker-on-a-commutation-or-a-statutory-lump-sum-election/new-south-wales.md) | Yellow |
| [Queensland](https://ailawframework.com/practice/personal-injury-and-compensation/advise-the-worker-on-a-commutation-or-a-statutory-lump-sum-election/queensland.md) | Yellow |
| [Victoria](https://ailawframework.com/practice/personal-injury-and-compensation/advise-the-worker-on-a-commutation-or-a-statutory-lump-sum-election/victoria.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*