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Cashing out annual leave simply means that instead of taking the annual leave, you are paid it.
Now, annual leave cash outs are possible either because of terms included in a modern award or enterprise agreement OR a written agreement between an employer and award or agreement free employee per section 94(1) of the Fair Work Act 2009 (Cth).
Firstly, let's go through the modern award and enterprise agreement terms.
Whenever your employees request to cash out annual leave, they will need to follow the rules in any award or enterprise agreement that applies.
So, what are the rules for an annual leave cash-out?
Now, let's consider our second group of employees - the award and enterprise agreement free employees, you'll need written agreements for these workers.
So, we know the written agreement to cash out annual leave are for award and enterprise agreement-free employees.
And, the annual leave cash out agreement with your workers should include these items:
Finally, do you need some help with preparing an agreement? here's some guidance from the Fair Work Commission for what should go into the agreement.
Do you need help from an Australian business lawyer for startups? Contact us today for help on email@example.com or 1300 478 278 Australia wide or on +61 2 9151 7233 from overseas. We are always glad to help.
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