We often receive queries as to whether annual leave and personal (sick) leave accrue when an employee is away from work. This is particularly so when an employee is absent on parental leave.
During a period of unpaid leave, the employee’s entitlements do not accrue, even where the employee is receiving Government-funded Parental Leave Pay paid through their employer. The Paid Parental Leave Act 2010 states that any period that an employee is on leave and receiving Government Parental Leave Pay (PLP) should not be treated as a period of paid leave.
However, annual leave will accrue during the following:
a period of employer funded paid parental leave;
a keeping in touch day;
a period of paid leave (such as annual leave) that they take during their period of unpaid parental leave.
Other periods of unpaid leave may be for a sick or injured worker that has run out of leave entitlements, is on study leave or taking unpaid leave to travel.
If you have any queries in relation to your employee’s entitlements, contact Andrew.