Thursday 31 January 2019
Can an employer Cash out Annual Leave at the employee’s request?
The Fair Work Act says that annual leave can only be cashed out under certain circumstances. Those are:
For all employees entitled to cash out annual leave the following rules apply:
Employers must keep a copy of this agreement with the employee’s records.
Can you Cash out Sick Leave?
The rules for cashing out personal/carer’s leave (sick leave) are different to annual leave under the Fair Work Act.
Most awards don’t allow sick and carer’s leave to be cashed out. The only 2 awards that allow for it are:
Employees covered by a registered agreement can cash out sick leave if the agreement allows it.
Like cashing out annual leave, to cash out personal/carer’s leave there needs to be:
An employee can’t cash out their built up sick and carer’s leave if these conditions aren’t met.
Other than the potential fines an employer could receive from Fair Work for cashing out annual or sick leave without meeting the requirements under the Act, employers should also consider the health and safety implications of cashing out leave – should the employee really be taking the leave? This is particularly important in physically or mentally demanding roles – think general managers or production line staff.
For further information about cashing out annual leave and/or personal/carer’s leave, please contact us.