Post - Cashing out Annual Leave

Cashing out Annual Leave allows an employee to receive payment instead of taking their Annual Leave. This means that an employee would be paid an amount equal to the time they would have been on leave and includes Annual Leave Loading.

It is important to note that awards, enterprise agreements and registered agreements have different provisions around cashing out Annual Leave. With that being said, it is important for both an employer and employee to consult their applicable award, enterprise agreement or registered agreement for further information.

While considering the application made by the employee for cashing out Annual Leave, a Company should consider:

·             If cashing out Annual Leave complies with the relevant award provisions or agreement;

·            If cashing out Annual Leave instead of taking it, is good for the employee’s work/life balance;

·            The type of work the employee performs;

·            If it aligns with company policies (i.e. fatigue management, workplace health and wellbeing); and

·            If it is suitable to approve the application if the employee is on higher duties. It is important to note that an employee cannot cash out Annual Leave at the higher duties’ pay rate.

For further information or assistance, contact the team today!
HR Business Assist | 1300 138 551 | support@hrbusinessassist.com.au