Cashing out Annual Leave
Often an employer is asked to cash out annual leave, usually when an employee is short of money or has a bill to pay.
The modern awards allow for an employee to cash out annual leave but certain conditions must be met;
The agreement to cash out annual leave must be put in writing and signed by both the employee and the employer and set out;
The amount of leave to be cashed out and the payment to be made to the employee, and
The date on which the payment will be made.
If the employee is under 18 years of age it must also be signed by a parent or guardian.
The maximum that can be cashed out is 2 weeks in any 12 month period.
After the cashing out the employee must still have available at least 4 weeks of annual leave.
A separate written agreement is required on each occasion annual leave is cashed out.