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High income employees can make an agreement to be paid for some of their annual leave instead of taking it. This can be done if:

  • the agreement is in writing
  • the employer pays the employee the same amount the employee would get if they had taken the leave
  • the employee has at least 4 weeks left in their leave balance after the rest is cashed out.

References

Fair Work Act 2009

  • section 12 says that an award/agreement free employee is one to whom neither a modern award nor enterprise agreement applies
  • section 47(2) says that modern awards don't apply to high income employees
  • section 94 says how annual leave can be cashed out by award/agreement free employees

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Page reference No: K600414