The Accident Compensation Act 2001 ("the ACC Act") provides cover to people who suffer "personal injuries" caused by accidents. ACC operates on a similar basis to an insurance scheme through providing support to people who are unable to work following accidents.

The ACC scheme provides New Zealand citizens, residents, and temporary visitors to New Zealand with a form of statutory accident protection. In order to qualify for ACC cover a person has to meet the eligibility criteria under the ACC Act. Namely, they must have suffered a personal injury because of an accident like a broken arm playing sport, a laceration using a knife, or a sprain following a fall.

Employers often face issues and questions associated with ACC in the following areas:

• Getting a job candidate's ACC history
• Medical certification (ACC45 Form)
• Work related personal injuries & first week compensation
• Top-ups
• Holidays Act entitlements
• Return to work plans & light duties
• Termination on medical grounds
• Challenging ACC decisions
• Accredited Employers Programme

Work Related Personal Injuries and 1st Week Compensation

There is an important distinction for Employers to be mindful of when considering personal injuries and Employee absences on ACC. Obligations in this respect depend on whether an injury is either:

• A non-work related injury; or
• A work-related injury.

Non-work Related Injury

If an Employee is off work due to a non-work-related injury, then they can use any paid sick leave, or annual leave entitlement for the first week of their absence. If they have no sick leave, or annual leave, then the period can simply be treated as unpaid sick leave. An Employer can always choose to offer either of these to an Employee in advance of their entitlement, which is not mandatory, or alternatively discretionary paid leave.

After the first week of incapacity ACC should pay the Employee ‘weekly compensation payments’ for the period they are on ACC, which is 80% of their usual pay.

Work Related Injury

If an Employee is off work due to a "work related injury", i.e. an accident at work, then the Employer has to pay the first week compensation equal to 80% of the Employee's earnings. This is separate to any paid sick leave entitlement, or annual leave. After the first week of incapacity ACC should pay the Employee "weekly compensation payments" for the period they are on ACC, which is 80% of their usual pay.

Top-ups

An Employer and an Employee can agree on topping up an Employee's earnings while they are off work on ACC via utilising paid sick leave, or annual leave. Specifically, an Employer can top up the Employee's earnings from 80% to 100% by using one day of the Employee's sick leave (or annual leave if they do not have any sick leave) for every five days they are off work on ACC. Sick leave should be utilised for this in the first instance.

Employers Assistance Limited has a dedicated "ACC Employer eBook" which provides detailed practical guidance and information on the ACC for Employers with respect to the considerations and obligations which befall the Employer. This guide is available in the Library section of the Employers Toolbox.