Q: I have an employer who has had an employee on ACC for a long period of time. Their gross earnings have been $3000 in the last 18 months. He has returned part time from ACC for less than 3 weeks and then went on ACC again.

Can you please confirm how we calculate holiday pay if they officially resign?

A: Being on ACC is counted as continuous employment and even on termination any annual holidays entitlement to be paid out is based on the greater of AWE and OWP.  AWE will be low but OWP is based on the agreed week (what is in the employees employment agreement so this could provide the weekly rate the employee would get if they were working).

Q: Yes, thank you. So if their hours are supposed to be 40 per week, then they are entitled to OWE. If they have not worked those hours for 18 months, how long before their OWE could be adjusted? Where does this put employers who have staff on long term acc. Are they better to terminate the contract rather than let it go on that long?

Does the same apply to people who have taken secondment or parental leave? Are they still paid OWE?

A: It does not reset it is based on agreement.  So if the employment states 40 hours it can’t be changed to zero because they are not working it is based on what they would be working if they were actually working.