Can an employee cash out their annual leave?

The Modern Awards commonly used in children’s services contain a clause permitting cashing out of annual leave. These include, the Children’s Services Award, Educational Services (Teachers) Award – Schedule B only, Clerks Private Sector Award and the Social Community Home Care and Disability Services Award.

The following conditions apply:

  • each cashing out must be subject to a separate written agreement.
  • the payment will be no less than the amount that would be paid if the leave was taken (therefore the cashed out payment will including leave loading if applicable).
  • the agreement must not result in the employee’s annual leave entitlement being less than 4 weeks.
  • the maximum amount that can be cashed out is 2 weeks in any 12 months.

You can download a sample agreement here.