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Worker’s comp is compensated with annual leave

Worker’s comp is compensated with annual leave (Last Updated On: November 18, 2014)

Did you know that NSW employees whilst on worker’s compensation are entitled to accrue annual leave? The NSW Workers Compensation Act permits the accrual of annual leave under s130(2) of the Fair Work Act.

In a recent case, NSW Nurses and Midwives v Anglican Care, The Federal Court ruled that NSW employees on worker’s compensation are entitled to annual leave. It was found that Anglican Care had not provided annual leave to the staff member whilst she was receiving worker’s compensation, therefore Anglican Care was forced to pay the aged care worker $3,000.

The previous interpretation of worker’s compensation was just that, you are paying your staff the necessary amount to get them through a difficult time. Before the Anglican Care case employers had the ‘opportunity’ to reward an employee on workers compensation with annual leave. However now employees have the ‘right’ to receive both entitlements.

Our clients often have questions around annual leave requirements, it can often be confusing when understanding how much to give and when to accrue annual leave.

Some questions include:

‘Do my staff accrue annual leave whilst they are on annual leave?’
‘Is annual leave given to staff whilst on gardening leave?’

The consensus is anytime staff are being paid by their employer they should be accruing annual leave.

If you have any questions referring to annual leave, when annual leave accrues or if you have staff currently on workers compensation call Employsure on 1300 651 415 or fill in the form below.

We can offer you with immediate answers to any questions referring to annual leave entitlements. Employsure helps you with all your employment relations needs so that you can focus on other facets of your business development.

*Information sourced via the Workplace Express Website.

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