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ARTICLE · 31 MAY 2016

Annual leave amendments to modern awards

Cooper Grace Ward
Cooper Grace Ward
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The Fair Work Commission Full Bench has decided to vary the annual leave provisions in the majority of modern awards.

AustraliaEmployment and HR
Annie Smeaton
Annie Smeaton
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As part of the four yearly review of modern awards, the Fair Work Commission Full Bench (FWCFB) has decided to vary the annual leave provisions in the majority of modern awards in respect of the following matters:

  • cashing out annual leave;
  • excessive annual leave accruals;
  • granting annual leave in advance; and
  • payment of annual leave during leave

Cashing out annual leave

Award covered employees can only cash out annual leave if the relevant award allows for it. The majority of the modern awards will be varied to include a model term that allows employees to cash out some of their annual leave, with certain conditions. The conditions include:

  • A maximum of two weeks of annual leave can be cashed out every 12 months.

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