Further to our update last month employees are now able to cash out annual leave subject to the following conditions:
- The agreement must be in writing, signed by both parties and the employer must keep the agreement in the employee’s HR file
- 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
- Annual leave cannot be cashed out if it results in the employee’s remaining entitlement falling below 4 weeks
- 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.