3-4 Employees on ACC

Boards receive directly, via the Education Services Payroll, the Earnings Related Compensation (ERC) from ACC for an injured employee. Boards should ensure their administrative processes around ERC are the same for all board employees on ACC, regardless of how their employment is funded.

‘Top-ups’ for individual ACC payments will not be made.

Work-related accidents

If the accident is work-related, the following process occurs:

Stage Description
1 The employee continues on full pay and no sick leave is deducted:
  If... then...
  the employee is charged to Teachers’ Salaries the full 100% continues to be funded by the Crown and charged as 1 FTTE usage for banking staffing purposes, in the same way as they had been before the absence.
  the employee is charged to Operational Funding the board continues to fully fund the employee’s salary, in the same way as they had been before the absence.
2 ACC pays the ERC to the pay centre.
3 The pay centre forwards the ERC to the board’s bank account.

Non work-related accidents

If the accident is non work-related, the following process occurs:

Stage Description
1 The employee continues on full pay with one day’s sick leave for each week absent debited from their sick leave entitlement.
2 ACC pays the ERC to the pay centre
3 The pay centre forwards the ERC to the board’s bank account.

The Earnings Related Compensation (ERC)

The ERC is paid at 80% of the employee’s assessed salary into the board’s bank account, or direct to the employee if the accident was non work-related and all sick leave has been exhausted.

Using the funds from ACC

The ERC paid into the board’s bank account may be used in whichever way the board wishes. Usually it is used to fund cover for the injured employee.

In most cases boards find this is sufficient to meet their relief teacher expenses. Where this is not the case, the board is required to fund the difference from their own funding.

Further information

For further information about applying for employee compensation from ACC, see www.schoolpayroll.govt.nz or see ACC’s website: www.acc.co.nz



Content last updated: 12 August 2011