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Do I Accrue Annual Leave While On Workers’ Compensation?

Each work relationship is unique and might be governed by several parts of legislation and other organizational instruments that interact. It is not always simple to locate solutions to particular employment law problems, and the regulations in this field are constantly changing. Sometimes seemingly basic queries could lead to unexpected results, so proceed with caution.

What Exactly Is The Law?

The Fair Work Act of 2009 (S 130(1) – Limitation on obtaining or amassing annual leave while on workers’ compensation) states that:

“An employee is not allowed to obtain or amass any (annual) leave of absence (paid or unpaid) under this Section during a duration (a compensation period) where the employee is absent from work due to personal injury or injury in which the employee is collecting compensation payable under a law (a compensation law) relating to workers’ compensation and belonging to the Commonwealth, a State, or a Territory.”

Employers will generally purchase workers’ compensation insurance, which will pay the remaining time taken after all compensated sick leave has been expended. Employers must now be aware that these durations of workers’ compensation do come at a price in the shape of yearly leave accrual.

Notably, this can result in a considerable rise in termination payouts for workers who have been on workers’ compensation for extended periods. If a Modern Award requires annual leave stacking to be handed out upon termination, the rate of these accruals to employers can rise by 17.5 percent.

Keep An Eye On This Space

With every new administration, industrial relations are thrown into question- and the Abbott administration is no exception.

The Fair Work Amendment Bill 2014, enacted by the House of Representatives on August 27, 2014, incorporates an amendment, which prohibits workers from accruing annual leave while collecting workers’ compensation. As a result, if the Senate approves the Amendment Bill, the judgment in NSW Nurses and Midwives Association v Anglican Care will be overturned, and many companies with lengthy workers compensation claimants would be relieved.

Meanwhile, companies in New South Wales must be mindful that workers’ annual leave keeps accruing while they are on compensation leave.

Additional Tips And Direction

Employment law is a difficult area, which is constantly changing. Entitlements could be granted or revoked frequently without sufficient notification to the wider public. Employers could be caught unawares even if they had earlier received good guidance on their responsibilities.

Snow, Carpio, Weekley is an expert employment law practice that commonly counsels clients on all elements of the intricate relationship and recruiting responsibilities between employers and employees. Call (602) 532-0700 to talk to the Phoenix Workers’ Compensation Attorneys to discuss your situation and receive guidance on how to get the most out of your wage investment while minimizing your vulnerability to employee claims.

Call Today! (602) 532-0700

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