Question
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Question of the week

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08 October 2021

Reaching agreement

Employment Law
Federal

Asked

Employment law - Cashing out leave

Some Awards – for example the Clerks – Private Sector Award – state that an employer and an employee may agree to the cashing out of an employee’s accrued paid annual leave. Does this require agreement by both parties?

Answered

Thank you for the question.

Yes, there must be agreement in order to cash out. The cashing out is subject to the further requirements of s 93(2) of the Fair Work Act 2009 and clause 32.9 of Clerks – Private Sector Award.

An employer is not required to agree to an employee’s request to make a cashing out agreement. However, under clause 32.9 an employer must not exert undue influence on an employee to make, or not make, an agreement to cash out annual leave: s 344(b) of the Act, or knowingly or recklessly make a false or misleading representation about an employee’s rights in relation to cashing out: s 345.

Regards

Mentor