Where a workers' compensation insurer agrees to permit an injured worker to retain a portion of damages recovered from a tortfeasor (as an incentive to litigate), that payment is properly characterised as a contractual entitlement or bounty, not as common law damages. Such an arrangement does not constitute double compensation and does not relieve joint tortfeasors of their obligation to contribute under s 5(1)(c) of the Law Reform (Miscellaneous Provisions) Act 1946 (NSW). An insurer is not obliged to enforce its statutory charge under s 207B of the Workers' Compensation and Rehabilitation Act 2003 (Qld) and may waive it by agreement.
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