Question:

I have a question regarding the 52 week calculation…if an associate takes a week of unpaid leave, is this amount (ie zero), included in a future 52 week calculation.  By example:

Someone works from say July 2009 – June 2010.  During that time they have taken 1 week unpaid leave in March.  If they took a week annual leave at the end of June 2010, would I include the March unpaid week $0 in my previous 52 week calculation for AWE?

Answer:

Under the act if an employee is approved to take unpaid leave it is part of continuous employment so yes it would be part of the last 52 weeks (so AL gross earnings will be at a reduced value of a week).

 

There is a section 16(3) that allows the parties by agreement to extend the 52 weeks when a period of unpaid leave is taken.  This means the employee would work an actual 52 weeks (even if that had taken 6 weeks unpaid leave off) and then be able to take their AL at full value.  I have never seen an employer put this in place because it is by agreement not compulsory.