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ARTICLE · 01 AUGUST 2016

Welcomed annual leave flexibility under modern awards

With conditions, almost all modern awards will soon be amended to include an annual leave cash out term.

AustraliaEmployment and HR

We love annual leave. Those 20 glorious days a year every full­time employee gets to unwind, go on holiday, or have a little staycation (yes, that's a thing). But you all know someone, or you are someone, who just can't take a break, and these eager beavers end up with massive leave accruals. Thankfully, as part of its four yearly review of modern awards, the Fair Work Commission has loosened the shackles to give employers and their workaholic employees more flexibility when it comes to annual leave.

Unlike their award­free counterparts, modern award covered employees are prohibited from cashing out their annual leave unless the applicable modern award expressly allows for it. The problem is, many awards are silent on cashing out annual leave. Meaning that even if an award covered employee genuinely wants to trade their annual leave for cash, they're out of luck.

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