Following recent decisions of the Fair Work Commission, most modern awards now allow employees to cash out annual leave in certain circumstances :
- Both the employer and employee agree in writing to the cashing out
- The agreement to cash out annual leave must not result in the employee’s remaining paid annual leave balance being less than four weeks
- The payment made to the employee must not be less than the amount that would have been payable had the employee taken the leave at the time the payment is made
- Employees are allowed to cash out up to two weeks’ annual leave in any 12 month period
Further information on changes to annual leave provisions in modern awards is available on the Fair Work Commission’s website