As part of its four-yearly review of Australia's modern awards, the Fair Work Commission has settled the terms of a new modern award annual leave model term to be included in all revised modern awards at the conclusion of the Commission's review. The new annual leave terms provide increased flexibility and additional rights for employees, namely allowing:  

  • Direction to take excessive annual leave: Modern awards would allow employers to direct their employees to take annual leave where they have more than eight weeks of annual leave accrued.
  • Cashing out of excessive annual leave: Modern awards would allow employees to elect to cash out up to two weeks' annual leave each year (provided that the employee retains at least four weeks' annual leave after such additional amounts have been cashed out).
  • Granting leave in advance: Modern awards would allow employees to take annual leave in advance of accruing the necessary entitlement (with their employer's agreement), and an employer will be able to deduct leave taken in advance from an employee's final pay.
  • Time for payment of annual leave: Modern awards would allow employers to pay annual leave by electronic funds transfer in an employers' usual pay cycle (some existing awards require that employees be paid for annual leave in advance periods of leave that they have taken).