Aussies are now able to “cash out” annual leave
Don't feel like holidaying? Take the money instead.
The ways in which Australians can draw on their annual leave entitlements have been reformed, giving employees the opportunity to cash out a portion of their leave instead of taking time off work.
The Fair Work Commission (FWC) has amended the workplace agreements of millions of Australians across a range of industries and titles, introducing annual leave cash out allowances.
Annual leave is paid at the employee's base pay rate for all ordinary hours worked, not including extra payments.
In order to "cash out" a portion of their leave, employees must have at least four weeks annual leave remaining and prepare a written agreement each time leave is cashed out.
Employers can't force or pressure employees to cash out annual leave and the payment must be the same as what the employee would have been paid if they took the leave.
Many workers covered by enterprise agreements already have the ability to cash out leave.
The changes will apply from the first pay period on or after 29 July 2016.
The Fair Work Commission is expected to make a decision on whether or not to reduce weekend penalty rates sometime next month.
Wishing you could have more annual leave? Take longer trips? We've come up with a way to turn your 20 days of annual leave into 50 days worth of holidays.