Whatever your job, our minds and our bodies need proper breaks from the workplace - and regularly! In fact, research suggests that taking annual leave can boost workplace productivity, improve your mental health and extend your life.
However, what happens when an employee has an excessive leave balance?
Cashing out
Most modern awards now allow employees to cash out up to 2 weeks annual leave in any 12 month period, provided they will be left with a balance of at least 4 weeks annual leave.
Employers and employees must both agree in writing to cashing out the leave.
Managing excessive leave balances
Excessive accrued annual leave is defined as:
- More than 8 weeks annual leave or
- More than 10 weeks for shift workers.
An employer who is genuinely tried to reach an agreement with an employee on reducing excessive annual leave can direct the employee in writing to take a period of leave. The directed leave cannot be for less than a week and cannot reduce the employee’s annual leave balance to less than six weeks.
Change to payment
In a change to how leave is paid, employers who pay their employees via electronic transfer no longer have to pay annual leave before it starts. Instead, they can pay it as part of the usual pay cycle.
For further information on the National Employment Standards, www.fairwork.gov.au