Can I cash out Annual Leave instead of taking time off?
The National Employment Standards does not specifically allow for the cashing out of annual leave. However, if an employee is covered by an award or agreement that allows the cashing out of annual leave, it may be done. An award or agreement-free employee may agree to cash out annual leave at any time with their employer. However, in all cases the following applies: • an employee must retain an entitlement to at least four weeks paid annual leave • there must be a separate agreement in writing on each occasion, and • the employee must be paid at least the full amount that would have been payable had they taken the leave.
