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For Your Office

ACC Employee Entitlements & Employer Obligations

The Accident Compensation Corporation (ACC) provides comprehensive, no-fault personal injury cover for all New Zealand residents and visitors to New Zealand.

Here is a summary of rules that apply in relation to the ACC scheme covering employee entitlements and employer obligations:
  • When an employee is taking leave for the first week of a NON-WORK accident, SICK LEAVE may be used 
  • If an employee has a WORK-RELATED accident, the employer has to pay ‘FIRST WEEK COMPENSATION’ for a WORK-RELATED accident 
  • An employer and employee can agree that the employer will top up the ‘first week compensation’ payment from 80% to 100% by reducing the employee’s sick leave entitlement by one day for each five days’ leave taken 
  • If an employee has a WORK-RELATED or NON-WORK accident and remains on weekly compensation, the employer cannot 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 WORK-PLACE or NON-WORKPLACE accidents), the employer and employee can agree that the employer will top up the ACC payment from 80% to 100% by reducing the employee’s sick leave entitlement by one day for each five days’ leave taken. Annual leave may also be used 
  • ACC payments commence from the second week but they are paid in arrears in the third week, so employees need to be aware that there is a ‘one week stand-down period’ where they will receive no income. Could your employee survive potentially for up to 14 days without any income?   
The Accounted4 Payroll team have had requests from ACC to complete ‘Employee Earnings Certificate—ACC003’ forms for several of our payroll clients. These forms can now be completed online and it can take about half an hour to collate the information, fill and submit it. Don’t delay filling out the form as this can hold up the claim!

Our recommendation to employers is to ensure that your employee registers with the ACC at the earliest convenience as it does take time to process claims and generate the weekly payment. 

For further information about ACC entitlements see www.acc.co.nz

Payroll team
Anne Bland   Extn. 831
Carolyn Lawrence  Extn. 837
Maree Craig  Extn. 825