If you are required to compensate the employee for lost earnings, then you only need to pay a maximum of 80% of pre injury income - you should NOT pay an 80% hourly rate (except in one specific case below), or 80% of the employee's average daily pay rate as this is NOT THE SAME as "up to maximum of 80% of pre injury income"
Many factors need to be considered when determining the best way to produce to desired result.
Injury occurs mid-week (ACC payable over 2 periods)
Work accidents don't always occur in the last few minutes or days of a pay period, therefore it's often necessary to split the ACC payment over more than one pay period.
Pay (up to a maximum of 80% of pre injury income) in the first period, and the balance in the second period
Employee is absent for less than 1 week
Pay (up to a maximum of 80% of pre injury income)
Employee is absent for at least 1 week and earns regular income
You have two choices:
- Use ACC as time worked category (1st week ACC) with a 0.8 multiplier (leave types do not have a multiplier option), or
- Pay 4 days of ACC as Leave Taken category (1st week ACC) - if they work a 5 day week then 4/5 = 80%. Use the "I know how much the employee would have earned" option in the leave wizard.
Employee is absent for at least 1 week and earns irregular income
Pay 4 days of ACC as Leave Taken category (1st week ACC) using the employee's Average Daily Pay rate - if they work a 5 day week then 4/5 = 80%
Links to more information:
What employers need to do when an employee is injured