ARTICLE · 14 AUGUST 2016

Cashing out annual leave now permitted under modern awards

Sparke Helmore Lawyers

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The change that allows cashing out of annual leave takes the form of a model clause inserted into most modern awards.

AustraliaEmployment and HR

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Annual leave can now be cashed out under most modern awards, following a determination by the Fair Work Commission (FWC) last year, which comes into effect from the first pay period on or after 29 July 2016. This change will impact millions of employees in Australia who are covered by the relevant modern awards. The change does not apply to employees covered by an enterprise agreement or otherwise not covered by a modern award, although many employees under these alternative types of cover are already entitled to cash out annual leave under existing arrangements.

The change that allows cashing out of annual leave takes the form of a model clause inserted into most modern awards. The key features of the model clause are:

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