Leave accrual and payment for employee on ACC (New Zealand)

ACC is a scheme that is administered by the Accident Compensation Corporation to cover personal injury on a no-fault basis. It can provide contributions towards costs such as loss of earnings, home or vehicle modification or treatment of injury.

When an employee is injured and needs to miss work due to the injury, whether the injury occurred at work or not, ACC has a scheme in place to compensate the employee for loss of earnings.

Even though the company is not paying an employee during the period while they are on ACC, being on ACC is not Unpaid Leave for an employee. The employee continues to be employed by the company and accrue leave as they would if they were working each period as normal. For leave to accrue as normal while they are away, the employee would need to be included in the Current Pays with no Gross earnings figures in the pays and the Days Paid set to 0.

When an employee is paid for any leave while they are on ACC or after they have returned from ACC, the leave is paid at the normal rate and using the same calculations as would have occurred when they had worked each period as normal.

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