Employment Lawyers Annual Leave

The Fair Work Commission (FWC) has varied some awards with new or changed terms about taking annual leave. Most changes take effect from 29 July 2016.

In short, there are changes to rules about:

  • cashing out annual leave – generally a maximum of 2 weeks per year with no less than 4 weeks remaining – written agreement required.
  • taking annual leave in advance – employer must agree and may deduct any amounts owing from employee’s final payment if they leave.
  • managing excessive annual leave balances – generally can direct an employee to take any leave accrued in excess of 8 weeks.
  • payment for annual leave – to be made in advance.

Annual leave rules may vary between modern awards and therefore we encourage employers to familiarise themselves with their rights and obligations by reviewing the annual leave provisions within any applicable modern award.


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