(1) A reference in
this section to compensation includes a reference to a liability for
compensation that is discharged by a settlement agreement registered under
Part 2 Division 12.
(2) If some of the
damages payable to a worker by a third party for an injury have not been paid
to the worker (the unpaid damages ), the employer can recover the unpaid
damages from the third party as a debt due to the employer if some of the
compensation paid by the employer for the injury has not been refunded to the
employer.
(3) The amount of
compensation refunded to the employer includes the amount of any reduction in
damages paid by the employer resulting from the operation of section 432
on account of compensation paid by the employer.
(4) Proceedings to
recover the unpaid damages are to be taken by the employer in the name of the
worker and at the expense of the employer.
(5) Any damages
recovered by the employer from the third party in excess of the amount of
compensation not refunded to the employer must be paid to the worker.
(6) The employer must
indemnify the worker against all costs and expenses incurred in respect of
proceedings taken in the name of the worker.