Where an employee takes leave without pay, compensation can be determined in two ways.
If the period of leave is minimal, and taken in lieu of other forms of leave (such as sick leave), the leave without pay is disregarded and the employee is paid as if he or she had worked.
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Example |
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An employee is on a graduated return to work at 5 hours per day. |
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The period of reduced earnings is within the first 45 weeks and the employee is receiving 'top up' compensation to 100% NWE. |
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100% NWE ($500) - AE ($312.50) = compensation ($187.50) |
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If during a week, the employee has 2 days LWOP for personal reasons, this should be ignored for the purposes of the calculation. For the 2 days absence, the employee will be deemed able to continue to earn at 5 hours per day. |
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Therefore, the employee will still receive her normal compensation entitlement, but a reduced AE for the week, which will take into account the 2 day LWOP period (albeit at 5 hours per day, rather than full time hours). |
The reduced earnings for that week were not due to the compensable condition, therefore compensation will not pick up the balance of the reduction.
However, where the period of LWOP is extensive (such as full time LWOP for study leave), no compensation will be payable.