Annual Leave enquiry – ACC

Question:

 

I have a query which I was hoping you would be able to help us with.

 

One of our clients who we do wages for, has queried the $ value of one of their employee’s annual leave entitlement.

 

The days owing to him are definitely correct, but we are unsure of the value of these days.

 

He has been employed by them since 2004 on a full time basis, however, during his employment he was on ACC for approx 18 months.

 

He has accrued leave during this time off, but in our payroll system it is still giving this ‘accrued’ time a dollar value, whereas we thought that even though it is accruing, it should have no value to it at all.

 

Answer:

 

Section 16 states that ACC is part of an employee’s continuous employment.

 

The calculations are AWE and OWP and are taken from the last pay period (12 months and 4 weeks), so even though the employee has had a period of ACC if they have been back in the workplace at least 5 weeks the 4 week calculation will be the greater of the two.

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