Paying final leave entitlements

Q: Just looking for some guidance on the below scenario:

  • We have an associate who has been on ACC for over 12 months, we have not be paying the associate anything it has been paid directly by ACC.
  • We have now terminated the associate and are paying her final entitlements.
  • At what rate would we be paying her leave? Obviously not at her AWE rate as this is 0, but if we then look at her OWE  this technically 0 to as she has not been paid for the last 12mnths or should we pick her OWE before she commenced unpaid leave and use that?

A: As ACC is counted as continuous employment both AWE and OWP would be applied to any annual holiday entitlement paid out on termination.

OWP is the agreed week S8(1) that could be defined in the employees employment agreement (so this would mean it provides value), if they are variable then the 4 week average would be used and that would be based on 0.

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