Practical review
What to check in this situation
- Check the accepted and disputed injuries, benefits and effective dates.
- Match every reason to the evidence relied on and note missing attachments or unsupported assumptions.
- Separate a section 78 liability dispute from a work capacity, PIAWE or weekly-payment notice.
Records that may help
Keep the complete notice pack, envelope or email date, reports relied on, treating evidence and a short chronology.
Next procedural step
Respond to the actual grounds and obtain advice promptly because different dispute pathways have different timing rules.
Overview
What section 78 requires
An insurer must give notice when it disputes liability for a claim or an aspect of a claim, or decides to discontinue or reduce weekly compensation. The notice may deal with more than one issue, but each decision should be identified clearly enough for the worker to understand what has changed and why.
Sections 78 and 79 work together: section 78 identifies when notice is required, while section 79 requires concise, readily understandable reasons and identifies the statutory basis relied on for a liability decision.
The notice is the insurer's decision, not a determination by the Personal Injury Commission. It can be reviewed or disputed where the statutory pathway and evidence support that step, but no outcome is guaranteed.
Our NSW workers compensation guide explains the broader claim, benefit and dispute framework.
What should be in the notice?
Section 79 requires a concise and readily understandable statement of the reason for the decision and the issues relevant to it. If liability for compensation is disputed, the notice must identify the provision of the workers compensation legislation on which the insurer relies. The Workers Compensation Regulation can prescribe further content and documents.
- the decision: what is accepted, disputed, reduced or discontinued;
- the factual and medical reasons for that decision;
- the legislative provisions relied on for a liability dispute;
- the date the decision takes effect, where a notice period applies;
- the reports or other material relied on and supplied as required; and
- information about review and dispute rights required by the legislation or Regulation.
Section 73 and the Regulation regulate the provision and use of prescribed reports. If the notice refers to an IME, factual investigation, rehabilitation report or other material that is not included, ask for it in writing and record the request.
Section 80 weekly-payment notice periods
Section 80 applies where a worker has received weekly payments continuously for at least 12 weeks. It prevents the insurer from implementing a discontinuation or reduction before the required notice period expires. A combined section 78 notice does not remove this requirement.
| Decision | Required notice under section 80 | Important qualification |
|---|---|---|
| Reduction or discontinuation following a work capacity reassessment | 3 months | The reassessment must result from an insurer work capacity decision. |
| Other decision after less than 1 year of continuous weekly payments | 2 weeks | Section 80 applies only after at least 12 continuous weeks of payments. |
| Other decision after 1 year or more of continuous weekly payments | 6 weeks | The exact basis and any statutory exception still need to be checked. |
Section 80 contains an exception for a change caused only by the automatic application of a different statutory rate after an earlier entitlement period ends, although notice must still be given before that change. A different rule may apply where weekly payments have not run continuously for 12 weeks.
Separate the issues in a combined notice
Section 78 allows a liability dispute and a weekly-payment discontinuation or reduction to be combined in one notice, subject to any Guidelines requirement for separate notices. A worker may therefore need to answer more than one decision in the same document.
Liability
Does the insurer deny that there is a compensable injury, dispute work contribution, or rely on an exclusion?
Weekly payments
Is the insurer reducing or stopping payments because of liability, work capacity, earnings, a statutory duration rule or another basis?
Treatment
Is injury liability accepted but the particular treatment disputed as unrelated or not reasonably necessary?
PIAWE or work capacity
Is the real disagreement the wage calculation, capacity for suitable employment or a work capacity decision?
Review and PIC pathways
- Insurer review: section 287A lets a worker request review before referral to the PIC. Once requested, the insurer must conduct the review and notify the worker within 14 days.
- PIC legal dispute: an unresolved legal dispute can be referred where the statutory conditions are met. Form 2 and supporting documents are generally used for the legal pathway.
- Medical dispute: a medical question may be referred for medical assessment rather than decided in the same way as a legal liability dispute.
- Relevant-conduct psychological claim: internal review is mandatory before the PIC or IRC. The IRC determines only whether the alleged conduct was relevant conduct; other disputed claim issues remain within the workers compensation pathway.
For ordinary claims, insurer review is generally optional for the worker. It should not be described as a universal requirement before PIC proceedings.
When does a PIC referral stay a decision?
Section 289B creates a specific stay for a work capacity decision to discontinue or reduce weekly payments. The dispute must be referred for determination before the section 80 notice period expires, and the stay runs from the time the President accepts the dispute until it is determined, dismissed or discontinued, unless the Commission orders otherwise because of unreasonable delay.
That provision should not be converted into a general statement that every section 78 notice, review request or PIC application keeps payments or treatment in place.
A practical document checklist
- complete notice, envelope or email and date received;
- every report and attachment supplied with the notice;
- claim form and initial injury notification;
- certificates of capacity and treating records;
- incident, witness, roster and task evidence relevant to causation;
- PIAWE calculations, payslips and payment history;
- work capacity decision and suitable-employment material;
- treatment request, clinical rationale and refusal reason;
- written request for any missing relied-on material; and
- a short issue list showing which evidence answers each insurer reason.
Frequently asked questions
What is a section 78 notice?
It is written notice of an insurer decision to dispute liability for a claim or an aspect of a claim, or to discontinue or reduce weekly compensation. The requirement comes from section 78 of the Workplace Injury Management and Workers Compensation Act 1998 (NSW).
What must a section 78 notice say?
Section 79 requires a concise and readily understandable statement of the reasons and relevant issues. A liability dispute notice must also identify the provision of the workers compensation legislation relied on. The Regulation may require further information or documents.
Can liability and weekly-payment reduction be in one notice?
Yes. Section 78 permits a combined notice for a liability dispute and a discontinuation or reduction of weekly compensation, unless the Workers Compensation Guidelines require separate notices. The section 80 notice period still applies where its conditions are met.
How much notice is required before weekly payments are reduced or stopped?
Section 80 applies where the worker has received weekly payments continuously for at least 12 weeks. A work capacity reassessment carries three months notice. In other cases it is generally two weeks if payments have been received for less than one year, or six weeks if for one year or more. Statutory exceptions and the exact decision must be checked.
Is insurer internal review compulsory?
For most claims, the worker may request a review before referral to the PIC, and the insurer must complete a requested review within 14 days. Internal review is mandatory before PIC or IRC proceedings for a relevant-conduct primary psychological injury claim under the post-1 July 2026 pathway.
Does a PIC application keep payments going?
Not in every dispute. Section 289B creates a specific stay for a work capacity decision reducing or discontinuing weekly payments if the dispute is referred and accepted before the section 80 notice period expires. Do not assume an automatic stay for a different liability or treatment dispute.
Related decision and dispute guides
- NSW workers compensation claims and legal help
- Claim denied: evidence and next steps
- When an accepted claim is disputed later
- Personal Injury Commission dispute process
- Insurer internal review: what to check
- IRO and ILARS funding guide
- Work capacity decision disputes
- Weekly payments stopped or reduced
- Treatment denied or delayed
- Pre-existing condition disputes
- Primary and secondary psychological injury
Need help reading a section 78 notice?
Send every page and attachment, together with the date received. We can help separate the decisions, identify the evidence issue and check whether insurer review, IRO funding or a PIC pathway may be relevant.
This information is general in nature and is not legal advice. You should obtain advice about your own circumstances. ILARS funding is subject to eligibility and IRO approval.