Cashing up Leave
The Holidays Act allows an Employee to 'cash-up' one week of Leave each Entitlement Year if the Employer enables it. Some things to note regarding this statement
- You can ONLY cash up one week each entitlement year. If you fail to cash up one year, you cannot aggregate them and try and cash up multiple years.
- It is only One Week and a week is defined by an employee's contracted work days. It is not one week and a few extra days.
- The Leave Balance Report shows you how many days are available to Cash-Up, if it shows Zero, it means there are no available days.
- You can ONLY cash-up Annual leave from an ENTITLED balance, not from ACCRUED leave - see related article for definitions.
- Cashed-Up Annual Leave does not add to Gross Liable Earnings (for Annual Leave Calculations) so it does not affect future Leave Rates.
- You can only Cash-Up Alternative Leave once it is 12 months old, not before, and it does add to Gross Liable Earnings so will affect future Leave Rates.
- When it comes to other Leave Types, for example, Long Service Leave, Hours in Lieu, etc. these can be cashed-up with the Employer's Agreement and these will add to Gross Liable Earnings and will affect future Leave Rates.