Can employees take or accrue leave while also receiving workers compensation?

Under the Fair Work Act 2009, an employee is not entitled to take or accrue paid leave such as annual leave and personal leave while that employee is also absent from work and receiving workers' compensation payments. The exception to this, as provided under section 130 of the Act, is where the applicable workers' compensation scheme 'permits' the worker to do so.

This exception has been the subject of some confusion. Workers' compensation legislation differs between states and it can be unclear as to whether it 'permits' employees to receive the dual entitlement. For example, section 49 of the Workers Compensation Act 1987 (NSW) says that workers' compensation is "payable...even though the worker has received or is entitled to receive in respect of the period of any payment, payment, allowance or benefit for holidays". This section is clearly contemplating the simultaneous receipt of both workers compensation payments and holiday pay, however it does not explicitly