Impact of Extended LWOP on leave accruals

Q: Does an employee on extended leave without pay due to illness, continue to accrue annual leave and sick leave?


A: Is this called unpaid SL or unpaid leave?

  • Unpaid SL is counted as continuous employment
  • Unpaid leave is based on what has been agreed but the first week is counted as part of continuous employment.  Was it agreed to be counted as continuous employment or as a break in service?

Q: Because we’ve paid it as LWOP Sick, he still accrues AL and SL. The value of any AL, which will likely be paid out on termination, would be based on AWE v OWP if rolled into entitled, or 8% of gross?


A: Yes, correct to what you stated below and it is still the greater of AWE and OWP (it is not like parental leave that only uses AWE).  But the unpaid SL will reduce the gross for AWE but the employment agreement could give value to OWP.

Leave a Reply

ePayroll FREE Weekly Newsletter

Payroll News, Tips and Advice Delivered FREE to your inbox. Privacy Statement: your email address will never be revealed to third parties.
Click here to access the ePayroll Archive