Catching COVID Whilst Working – Are You Covered By Workers Compensation?

Sara v G & S Sara Pty Ltd [2021] NSWPIC 286

The Personal Injury Commission recently heard a case, in which a worker contracted and died of COVID whilst working overseas. 

Mr Sara was employed in the health industry, selling and installing dental equipment in Australia and the United States. He travelled from Sydney to New York for a business trip and contracted COVID-19 in July 2020. He was hospitalised at New York-Presbyterian Hospital for several months, before dying in New York on 21 November 2020.

Interesting, this matter was complicated by the following issues:

1. Mr Sara and his family were shareholders, directors and involved in various entities, including two Australian companies (one of which was the Respondent), an American company and a family trust. 
2. Mr Sara did not regularly wear masks and was well known to “hate them”. 

Mr Sara’s widow, Mrs Sayd Sara, lodged a Workers Compensation Claim, including a death benefit claim, and a claim of US$11 million (~AU$15 million) in medical expenses.

As Mr Sara was working in the health industry, recent amendments to the Workers Compensation Act 1987 (NSW) meant that he was presumed to have caught COVID in the course of his employment. Due to this, the insurer attempted to defend the claim by arguing that Mr Sara was not a “worker” as defined by the Workers Compensation Legislation because he was allegedly working for an American company. 

The Commission found the following:

1. Mr Sara likely caught COVID-19 on the flight from Sydney to New York. 
2. The fact that Mr Sara did not wear masks helped his widow’s case, as it was determined that he was at higher risk of contracting the virus, particularly in transit.
3. Mr Sara’s salary was paid by the Respondent, an Australian company.
4. The work that Mr Sara intended to complete in the United States was for the benefit, of the Australian company, and not solely the American corporate entity.
5. The death benefit was awarded, however, the claim for medical expenses was adjourned, pending further clarification of the maximum amounts recoverable under the Workers Compensation policy.

If you caught COVID whilst working, contact our experienced Workers Compensation Team to discuss your potential entitlements under the Workers Compensation Scheme.