ACC Claims & Holiday Pay
Holiday Pay & ACC Claims
A scenario we come across quite often is when an employer, acting in good faith, keeps a job open for a worker whilst they are on ACC.
At some point down the line, it becomes clear that the injury is such that the worker cannot return to work; or perhaps the worker has chosen to resign.
On the settlement of outstanding dues including holiday pay, the worker is entitled to their standard holiday pay for the full period they were on ACC. This is typically 1 week for every three months on compensation.
Far too often this comes as a surprise to the employer and at times, becomes quite costly as a recent ERA case in Christchurch highlighted.
This is not the only cost the employer has as all that time off by the worker will result in penalties on your ACC levies… that last for three years. A basic rule of thumb for the wider trades is that for every 100 days lost on an ACC claim(s), the business will pay an additional $4,000 in ACC levies over a three-year period. This varies a bit depending on your payroll size and actual ACC levy code however, it’s a useful guide.
Overall, the news is rather bleak, isn’t it?
Having some structure in the way you manage ACC claims will help you prevent these ‘hidden’ nasties, and it is much simpler than you may think.
We specialise in ACC Claim Management for employers including SME’s. Our job is to make sure you do not get unnecessary ACC penalties including large holiday pay dues. We also focus on getting the best rehab in place by the right professionals… and no, this typically does not include Doctors. Medical certificates are overrated!
Check out our landing page CLICK HERE for a very cost-effective solution.
What can you do in the meantime though is the following:
At the time of injury: send the worker to the physio rather than a doctor or GP. Most injuries are sprains & strains and a lot of them end up with a ridiculous amount of time off! You can control this.
Panadol and a couple of beers: please don’t rely on this as a rehab tool as inevitably the worker will end up worse off resulting in more lost time.
Bad injury: if the injury is going to be long-term, plan for it including thinking about whether you can keep a job open (now knowing the holiday pay scenario).
Communicate: most workers end up with a lot of time off because no one actually communicates with them. They are no longer asked to join safety meetings, get involved in maintenance (alternative duties), etc. Touch base with them by phone every couple of days or go and see them in person – take them coffee if it means you get to check on them!