Q: We have an employee who has been on long term ACC but his employment may be terminated.He has an annual leave entitlement of 23 days with his next entitlement not due until Sept 2020.He has been on ACC for 33 weeks so therefore has only worked 19 weeks in the previous 52 weeks of the possible termination date. My question is, what will be the value of a days Annual Leave? His Gross Earnings for the last 52 weeks was $32,344.43, divided by 260 days = $124.40. This amount is less than his contracted hours of 40 hours per week = $27 x 40 = $1080 divided by 5 = $216.00.

Should I be reducing the number of weeks from 52 to the 19 weeks he was paid by us which would make his rate $340.47?

ACC do not give the employers the amounts they are paying employees but if it was 80% of the ADP I suspect he is getting a daily rate of around $272.38 from ACC. But being on ACC isn’t supposed to disadvantage the employee but if I don’t reduce the weeks denominator from 52 to 19 am I not disadvantaging him?

I not sure what the correct thing is to do here for both the employee or the employer. Should I be calculating his annual leave based on the $216.00 (contracted hours) or if i should be using the $340.47?

Can you please give me some guidance as to the correct calculation to use.

A: ACC is counted as continuous employment and on termination you will be using the greater of AWE and OWP so they would get the value through OWP (the agreed rate for the week).