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Scheme guidance - Accrual of leave

To support scheme employers and relevant authorities in understanding and applying scheme guidance about accrual of leave during a period of compensation leave under the Safety, Rehabilitation and Compensation Act 1988 (SRC Act).


Roles and responsibilities

Scheme employers are required to calculate leave where an employee is incapacitated for work as a result of their compensable injury under the Fair Work Act 2009 (Fair Work Act) and on compensation leave under section 116 of the SRC Act.

The complexity of the provisions may have resulted in some scheme employers incorrectly calculating accrual of leave entitlements for employees on compensation leave.  Employers are encouraged to review and correct the calculation of leave accrual for employees on compensation leave from 1 July 2006.

Relevant authorities are responsible for determining the amount of incapacity compensation payable, if any, under the incapacity provisions of the SRC Act. The accrual of leave requirements does not change the way the incapacity provisions operate.

Background

On 1 July 2006 amendments were made to the SRC Act, including changes to the way leave accrued under section 116 of the SRC Act.

In 2017 Comcare issued scheme guidance about the application of section 116, however the guidance did not cover how leave accrued under the Fair Work Act, which also affects calculation of leave accrual for employees on compensation leave.

The intersection of these sections of the SRC Act and Fair Work Act is complex. Comcare is committed to providing scheme employers with the information they need to determine the correct leave accrual for employees on compensation leave.

Following concerns expressed by some scheme employers, Comcare has worked closely with the Attorney-General’s Department to revise the scheme guidance.

Consultation with scheme stakeholders was collated in 2019 and issues raised are addressed in the guidance and the Frequently Asked Questions.

More information

Page last reviewed: 12 January 2022

Comcare
GPO Box 9905, Canberra, ACT 2601
1300 366 979 | www.comcare.gov.au

Date printed 19 May 2024

https://www.comcare.gov.au/scheme-legislation/src-act/guidance/scheme-guidance-accrual-of-leave