Cashing out annual leave

Cashing out annual leave means an employee receives payment instead of taking time off work.

Annual leave can only be cashed out when an award or registered agreement allows it.

Find out about cashing out annual leave in your award by selecting from the list below.

Don't know

You’ve told us that you don’t know what to select.The options in the list come from the most common awards. 

Minimum entitlements and obligations usually come from an award or registered agreement. If you don’t know if there is an award or registered agreement that applies, go to our Awards and agreements page for help. 

To find a registered agreement, go to the Fair Work Commission websiteexternal-icon.png

Use our 3 step form to help you Find your Award.

Every award and registered agreement has information about who is covered by it. To work out who is covered read: 

  • the coverage clause
  • the job classifications.

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Cashing out annual leave under a registered agreement

If you're covered by a registered agreement, check it for information on whether leave can be cashed out. To find a registered agreement, go to the Fair Work Commission website external-icon.png

Certain rules apply when cashing out annual leave:

  • an employee needs to have at least 4 weeks annual leave leftover
  • a written agreement needs to be made each time annual leave is cashed out
  • an employer can't force or pressure an employee to cash out annual leave
  • the payment for cashed out annual leave has to be the same as what the employee would have been paid if they took the leave.

Source reference: Fair Work Act 2009 s.92, 93 and 94external-icon.png

Think a mistake might have been made?

Mistakes can happen. The best way to fix them usually starts with talking.

Check out our Help resolving workplace issues section for practical advice on:

  • figuring out if a mistake has been made
  • talking to your employer or employee about fixing it
  • getting help from us if you can't resolve it.

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