Q: Could you please clarify annual leave entitlements for employees who have been on ACC for almost a year?  The employee I am querying about was Full time and previously worked different hours each week so it was not possible to determine her ordinary weekly pay.  When annual leave was previously taken, we had to calculate the 4-weekly average pay when determining annual leave pay rates.

I have 2 questions:

1. it appears that annual leave continues to be earned while employees are on ACC.  Is that correct?  Ie – 4 weeks is provided on each anniversary date.
2. I found the below website which seems to imply that if an employee has been off work (on ACC) for more than four weeks and it is not possible to determine their ordinary weekly pay, that the four-week average formula is applied to calculate ordinary weekly pay, which then results in their unused weeks of annual leave having no monetary value. See the highlighted section in the below snip.  Could you please advise if this is correct as it doesn’t seem right?

https://www.employment.govt.nz/leave-and-holidays/sick-leave/sick-leave-and-acc-payments/#:~:text=An%20employee’s%20annual%20leave%20is,is%20included%20in%20gross%20income

A: ACC is counted as continuous employment (section 16) so yes they get their 4 weeks.  It is also calculated on return based on the greater of AWE and OWP.  OWP is based on if the week can be determined or if it cant then the 4 week average.  If the employment agreement states what the week is now then that is what should be used now.

If the week cannot be determined then yes use the 4 week average.

Q: Just one more question regarding this. Is ACC counted as continuous employment if the injury happened both at work and outside of work?  Does this make any difference?

A: It covers both situations not one or the other.