ACC axed for injured workers fired or made redundant

Nick Smith. Photo / Supplied

Don't get injured at work: under new laws, ACC will snatch your holiday pay if you're laid off with an injury.

The move, dubbed "retrograde" by unions, was rushed through Parliament this week as part of a raft of cost-cutting measures.

People claiming ACC are paid 80 per cent of their salary after the first week away from work. But if the employer sacks the worker or they are made redundant, their holiday pay will be treated as income and ACC payments will be stopped until it runs out.

ACC minister Nick Smith said the change, part of the Prevention, Rehabilitation, and Compensation Amendment Bill, would affect around 1300 people a year. He estimated it would save the Government $1.3 million a year.

"It is not fair that people can double dip by receiving ACC benefits and keep their holiday pay," he said.

"I think there is a danger of an entitlement culture among the unions."

Derek Best, secretary of the New Zealand Professional Firefighters Union, said the decision to take people's holiday pay was a "retrograde step".

"It seems extraordinary that a firefighter injured out of a job would lose their holiday pay," he said. "It would be easy to have six weeks' leave owing and to lose that money would be hard - especially on top of being unable to work."

Best said around 10 firefighters left the service every year through injury and wondered why the Government was picking on such a small number of people.

"The savings the Government will make seem pretty small, but will hurt injured firefighters," he said.

Robert Reid, general secretary of the National Distribution Union, said the union was completely opposed to the change.

"What I don't understand is at what point does ACC take your holiday pay? Because you can be off sick and out of a job for some time before it is decided you cannot work again. The whole thing seems ill thought out."