When an employee is injured and covered by ACC, it can be confusing to know what your obligations are as an employer. Balancing compassion with compliance is key, and understanding how ACC payments work will help you manage the process smoothly and fairly.
Understanding ACC and Employer Obligations
If an employee is injured at work or outside of work, they may be eligible for weekly compensation from ACC after the first week of injury. During that first week, you as the employer must pay them 80% of their normal earnings. From week two onwards, ACC pays them directly, also at 80% of their pre-injury income.
It’s important to communicate clearly with your employee about how this works, and to provide any documentation ACC requests (such as payroll or hours records).
Can Employees Use Leave to Top Up ACC?
Some employees ask to use annual or sick leave to top up the 80% ACC payment so they continue to receive full pay. This is allowed, but it must be agreed between you and the employee, it’s not automatic.
If you agree, make sure it’s documented in writing, confirming how much leave will be used and over what period.
Keeping in Touch
Stay in regular contact with your employee while they’re off work. Check how they’re doing and talk about a possible return-to-work plan. Early communication helps avoid misunderstandings and shows good faith.
ACC often supports “return to work” or “light duties” programmes, which can help employees recover while remaining connected to the workplace. You can discuss options like reduced hours or modified tasks, with medical clearance.
Returning to Work
When the employee is ready to return, review any medical notes from their doctor or ACC provider. You may need to make temporary adjustments to duties or hours while they recover. It’s also a good idea to have a brief return-to-work meeting to confirm expectations and provide support.
In Summary
Managing an employee on ACC doesn’t need to be complicated, but it does require empathy, clear communication, and compliance with legal and payroll requirements. Keep talking to your employee, document any agreements, and liaise with ACC when needed.
If you’re unsure about payroll obligations, leave top-ups, or light duties arrangements, proHR can help you get it right, ensuring compliance while supporting both your people and your business.
