Q: If an employee has been on long-term unpaid sick leave (has accrued annual leave whilst on unpaid sick leave) and then resigns, can you advise how the annual leave calculation is paid for any outstanding leave due, the accrued is not an issue just need guidance whether this calculation is it the same as an employee who has been on ACC and then resigns?

A: Under Section 16 of the Holidays Act unpaid sick is counted as continuous employment and if the employee terminates it means any annual holiday entitlement is still calculated using the greater of AWE and OWP. AWE should be nothing but OWP is based on the agreed week so the employee could get value for the leave. For example if the employment agreement stated the week is paid at $1000, then OWP would be $1000 per week.  Any annual leave paid out also goes into the 8% on termination.