Q: We are just looking for some clarification on ACC First-week payment – we have differing understandings within our team.
Some think it should be paid at 80% of their contracted hours
Others think it should be 80% of what they earnt in the preceding 7 days
Also if the second option is correct and they were on sick leave for two days then worked 3 days – would it be 80% of contracted hours for the 2 days and then 80% or hours worked?
A: Here is the relevant section of the act:
Employee’s right to receive first-week compensation (Section 97)
1. First-week compensation for loss of earnings is payable to a claimant who – (a) Has an incapacity resulting from – (i) A work-related personal injury for which he or she has cover; or (ii) A motor vehicle injury to which section 29 (2) applies; and (b) Was an employee immediately before his or her incapacity commenced.
2. The compensation payable is 80% of the amount of earnings as an employee lost by the employee, as a result of the incapacity, during the first week of incapacity.
3. For the purposes of this section, there is a presumption that the earnings the insured loses as a result of the incapacity is the difference between – (a) The claimant’s earnings in the 7 days before his or her incapacity commenced; and (b) The claimant’s earnings in the first week of incapacity.
4. The presumption can be rebutted by proof to the contrary.
This is correct: Others think it should be 80% of what they earnt in the preceding 7 days Would it be 80% of contracted hours for the 2 days and then 80% of hours worked? – YES