sick leave – interface with ACC

Sick leave is available for employees who are injured, but these employees can also access ACC entitlements.

What an employee's ACC entitlement will be in various circumstances is determined under ACC law.

This fact sheet outlines the interface between the sick leave provisions of the Holidays Act and ACC.

The following rules apply in relation to sick leave and the ACC scheme:

When the employee is taking leave for the first week of a non -work accident, sick leave may be used as there is no ACC entitlement in these circumstances.
If an employee has a work related accident the employer has to pay “first week compensation” and can't require the employee to take that time off as sick leave.
If an employee has a work related accident and remains on weekly compensation paid by ACC, the employer can't require the employee to take time off as sick leave.
If an employee is receiving weekly compensation from ACC the employer has no obligation to pay the employee
Where the period of leave on ACC is in excess of five days (for either workplace or non-work accidents), the employer can top up the ACC payment from 80% to 100%. The employer may make this top up gratuitously, or the employer and employee can agree that it can be made through reducing the employee's sick leave entitlement by one day for each five days' leave taken.

To find out more about your ACC rights call ACC on 0800 101 996 or visit their website at www.acc.co.nz [external site]

Further information & guidance

We welcome the opportunity to help you further. If you can't find an answer to your question, or you want further clarification, more detailed information or guidance on any matter covered here, please contact us. We value your query and will respond to you as quickly as possible.

Call us free on 0800 20 90 20 or visit our website at www.ers.dol.govt.nz.

The content of this document covers common problems. It will not answer every question and should not be used as a substitute for legislation or legal advice.

The Department of Labour takes no responsibility for the results of any actions taken on the basis of information on this website, or for any errors or omissions.