Update on changes to annual leave conditions

Further to our update last month employees are now able to cash out annual leave subject to the following conditions:

  1. The agreement must be in writing, signed by both parties and the employer must keep the agreement in the employee’s HR file
  2. The written agreement must specify the amount of leave to be cashed out, the payment to be made to the employee and the date the payment will be made
  3. Annual leave cannot be cashed out if it results in the employee’s remaining entitlement falling below 4 weeks
  4. Employees can only cash out a maximum of 2 weeks’ accrued annual leave in any 12 month period.

Employers will be able to direct employees to take annual leave if their leave balance is in excess of 8 weeks from July 2017.