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When is Cashing Out of Paid Leave Permitted?


Annual leave

An employer and an employee may agree to cashing out a certain amount of the employee’s accrued annual leave if the employee is award free or if their applicable modern award allows for cashing out of annual leave to occur. Should an applicable award be silent with regard to cashing out of annual leave, this would not be allowable for employees covered by that award.

Long service leave

The entitlement to cash out long service leave is determined by the relevant State or Territory long service leave legislation. The cashing out of long service leave will only be allowable when provided for in the applicable legislation.

Personal/carer’s leave
Unless provided for in a modern award, an employee is not entitled to cash out a period of personal/carer’s leave.

Employees cannot make an agreement with their employer to cashing out any accrued paid personal/carer’s leave under the terms of an employment contract. 

Information in HR Advice Online guides and blog posts is meant purely for educational discussion of human resources issues. It contains only general information about human resources matters and due to factors such as government legislation changes, may not be up-to-date at the time of reading. It is not legal advice and should not be treated as such.

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