LOE Allowances can be provided for, or in replacement of, sick leave provisions as a result of absences from the work place for reasons associated with treatment, awaiting supply or repair of prosthetics, surgical aids or appliances or claim investigation commitments (covered in detail at Background) associated with a war or defence caused injury or disease. A veteran or member may organise leave without pay and receive the LOE Allowance for the period they are accessing eligible treatment, in effect 'preserving' their sick leave entitlements and replacing their leave with the LOE Allowance. These sick leave provisions provide a 'safety net' so veterans and members are not disadvantaged by the impacts of their accepted conditions. Leave entitlements are not 'gratuities' as described in subparagraph 108(8) (b)(iii) VEA. Veterans or members should be made aware that, in circumstances where their income exceeds the Special Rate of disability pension, the LOE Allowance for sick leave provisions can only be paid at the maximum of a rate equivalent to the Special Rate of disability pension.

While the decision to apply for LOE Allowance to cover sick leave must be made by the person, if a veteran or member has used part or all of employer provided personal (sick) leave for a war or defence-caused disability, and subsequently, in that year, having no benefit to cover an absence for another non-accepted condition, needs to take more time off work, then he or she can then access the LOE Allowance for a period of time off work for a non-accepted condition, up to the time limit of sick leave accessed for accepted conditions in that year, as per subsection 108(5) VEA.

For example, if the veteran or member has been required to take 2 weeks absence from work to receive treatment for a war caused disease, and used their employer provided personal (sick) leave to do so – they would be able to claim the LOE Allowance for 2 additional weeks for non- accepted conditions which have caused the person a loss of earnings.