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Historically the decision to accrue (or the cheaper alternative not to accrue) leave entitlements for injured workers on workers compensation has been a grey area. The resulting uncertainty for many businesses is caused by differences between various legislation. A recent Federal Circuit Court case decision provides greater clarity on this at least for NSW.
A recent court ruling has set a precedent requiring businesses to continue accruing leave entitlements for employees receiving workers’ compensation. Under Section 130 of the Fair Work Act, leave accrual is generally excluded during compensation periods unless permitted by law. Justice Emmett’s 2014 decision in NSW Nurses & Midwives Association v Anglican Care interpreted Section 49 of the NSW Workers Compensation Act to allow employees to accrue annual leave while on compensation. This “beneficial construction” ensures injured workers across Australia can accrue annual leave (and potentially other entitlements) during compensation periods.
For further information, please refer to:
Source: Hunt & Hunt Lawyers
Title: Leave Accruals continue whilst on workers compensation
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