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Policies, Procedures & SafeguardsJune 25, 2014
Many Australians have been vouching out their accrued annual leave and asking for cash. Maybe it’s the winter months or the price of travel or maybe it’s because we live in a country where we have access to many of the best tourist attractions in our very own cities. Whichever it may be, it is important to understand the limitations and the rules associated when cashing out annual leave.
If your employees are requesting cash instead of their annual leave, as their employer, you must take note of the following:
– Your employee needs to have at least four weeks annual leave leftover (or in the bank so to speak);
– A written agreement needs to be made each time annual leave is cashed out;
– You as the employer can’t force or pressure an employee to cash out annual leave;
– The payment of annual leave must be the same amount the employee would have been paid had they taken leave;
– The award or registered agreement your employee is engaged under must allow for the cashing out of annual leave.
If you would like any further information about annual leave or if you’ve had a request from an employee to cash out their annual leave and need clarification fill out the form below. We are here to make your businesses employee relations simple and ensure you’re doing the right thing by your employees.
*Information sourced via the Fair Work Ombudsman website