What is the ACC return-to-work pathway — week 1 versus week 2?
Short answer
Under New Zealand's no-fault Accident Compensation Corporation (ACC) scheme, an injured worker's first week of incapacity is funded by the employer at 80% of weekly earnings. From week 2 onwards, ACC pays the 80% weekly compensation directly to the worker. There is no common-law right to sue the employer for work injury.
New Zealand's Accident Compensation Corporation (ACC) scheme is unique among developed countries — it is a no-fault national insurance scheme that covers all accidental injuries, including work injuries. In exchange, common-law claims for compensatory damages are barred (with very narrow exceptions for exemplary damages).
For a work injury that causes incapacity:
- Week 1 — the employer is liable for the first week of incapacity, paid at 80% of the worker's ordinary weekly earnings. This is sometimes called "first week's compensation".
- Week 2 onwards — ACC takes over and pays the worker 80% of pre-injury weekly earnings directly, subject to a statutory maximum.
In addition to weekly compensation, ACC funds:
- Medical treatment costs (subject to ACC fee schedule).
- Rehabilitation services (physio, occupational therapy, vocational rehab).
- Independent living support where injury severity warrants it.
The PCBU has continuing duties under HSWA — particularly around RTW planning. RAE IQ's NZ RTW pathway:
- Tracks the week-1 / week-2 handover so neither party gets it wrong.
- Records certificates of capacity from treating doctors.
- Builds a suitable duties library keyed to common restrictions.
- Logs medical access events for PHI compliance.
Compared to Australian workers' compensation models (state-by-state insurers, common-law access in some states, varying weekly benefit rates), the ACC scheme is much simpler administratively but very different conceptually.