ARTICLE · 14 SEPTEMBER 2016

Cashing out annual leave and managing employee leave

Watkins Tapsell

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The Commission made changes to a number of the Modern Awards, which varied the rules about employees and annual leave.

AustraliaEmployment and HR

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From the end of July 2016, the Fair Work Commission made changes to a number of the Modern Awards, which varied the rules about employees and annual leave.

The changes included new rules about cashing in annual leave, taking leave in advance, payment for annual leave, and how employers can manage employees with large leave balances.

If your employees wish to cash out their annual leave, or take leave in advance, you can agree to these arrangements, provided that you comply with the requirements under your relevant modern award. In most cases, you must:

Have a written agreement regarding the leave to be cashed out or taken in advance;
Ensure that the employee has at least 4 weeks leave remaining after any agreed cash out of leave;

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