Cashing out paid annual leave
doctrinal
BOTH
cashing_out_annual_leave
branch: pay_entitlements
Statutory limits on cashing out: 50% cap per year, written agreement, no undue influence (s8(3) is a civil penalty provision under IR Act s83E). Federal equivalent under FW Act.
Statute
Minimum Conditions of Employment Act 1993 (WA) — s8
Synthesis · 30 tagged cases
30 tagged decisions (21 as primary). Of primary decisions, the most common outcome is '(unspecified)' (17, 81%).
Outcome distribution
| Outcome | n | % |
|---|---|---|
| Resolved (unspecified) | 17 | 81% |
| For applicant granted | 3 | 14% |
| Resolved partial | 1 | 5% |
By jurisdiction
| Court | n |
|---|---|
| Fair Work Commission | 11 |
| Fair Work Commission (Full Bench) | 9 |
| Single Commissioner (WAIRC) | 3 |
| Fair Work Australia (Full Bench, former) | 2 |
| Industrial Magistrates Court | 1 |
| AIRC Full Bench (former) | 1 |
| High Court of Australia | 1 |
| Full Bench (WAIRC) | 1 |
| Fair Work Australia (former) | 1 |
Key articulated principles · 9
para 175 — from [2024] WAIRC 227
WAIRC — Full Bench
Section 25 of the Minimum Conditions of Employment Act 1984 (WA) only applies to annual leave that has accrued in a prior year; it does not apply to leave accruing in the current year, which is governed by clause 80 of the Agreement.
para 64 — from [2015] FWC 1044
FWC
Where an employment contract provides for a higher hourly wage rate as compensation for absence of leave loading entitlement, and this rate is genuinely paid above the award rate, the employee would already have been compensated for leave loading entitlement through operation of that clause.
para 124 — from [2020] WAIRC 990
Industrial Magistrates Court
Annual leave cannot be cashed out except in compliance with the modern award terms, which require a separate written agreement between employer and employee specifying the amount, payment, and date.
para 138 — from [2020] WAIRC 990
Industrial Magistrates Court
An oral agreement to cash out annual leave does not satisfy the statutory requirements under s 93(2) of the Fair Work Act 2009 (Cth) and cl 28.11 of the Award, which mandate a written agreement signed by both parties.
para 23 — from [2026] FWC 180
FWC
Expressing leave requests in hours rather than days is consistent with the enterprise agreement and legislative intent where 'day' has no consistent meaning for shift workers with variable daily hours.
para 180 — from None
Section 25 of the Minimum Conditions of Employment Act is not concerned with and does not apply to annual leave accruing in the course of an accrual year, as opposed to already accrued annual leave.
para 9 — from None
Loaded wage rates (incorporating penalty rates into a base rate) breach the National Employment Standards.
para 83 — from None
Cashing-out of leave provisions that do not conform with s.93 of the Fair Work Act may be of no effect and may not be remedied by undertakings, though this does not impede approval of an agreement on other grounds.
para 83 — from None
Cashing-out of leave provisions that do not conform with s.93 of the Fair Work Act may be of no effect and may not be remedied by undertakings, though this does not impede approval of an agreement on other grounds.
Leading cases · by citation count
| Citation | Court | Role | Cited |
|---|---|---|---|
| [2016] FWC 2346 | FWC | primary | 1 |
| [2020] HCA 29 | High Court | secondary | 12 |
| [2024] WAIRC 227 | WAIRC — Full Bench | secondary | 3 |
| [2023] WAIRC 773 | WAIRC — Single Commissioner | secondary | 3 |
| [2016] FWC 525 | FWC | secondary | 1 |
| [2011] FWA 5491 | FWA (former) | secondary | 1 |
All tagged cases · 30
| Citation | Court | Role | Date | Outcome | Cited |
|---|---|---|---|---|---|
| [2016] FWC 2346 | FWC | primary | 2016-01-01 | For applicant | 1 |
| [2026] FWC 180 | FWC | primary | 2026-01-01 | For applicant | 0 |
| [2024] FWC 1255 | FWC | primary | 2024-01-01 | 0 | |
| [2020] WAIRC 990 | Industrial Magistrates Court | primary | 2020-12-17 | For applicant | 0 |
| FWC | primary | 2018-07-09 | 0 | ||
| [2017] FWCFB 2098 | FWC — Full Bench | primary | 2017-01-01 | 0 | |
| [2016] FWCFB 5874 | FWC — Full Bench | primary | 2016-08-19 | 0 | |
| [2016] FWCFB 4392 | FWC — Full Bench | primary | 2016-07-08 | 0 | |
| [2016] FWCFB 4525 | FWC — Full Bench | primary | 2016-07-08 | 0 | |
| [2016] FWCFB 3953 | FWC — Full Bench | primary | 2016-05-23 | 0 | |
| [2015] FWCFB 8408 | FWC — Full Bench | primary | 2015-12-04 | 0 | |
| [2015] FWCFB 5771 | FWC — Full Bench | primary | 2015-09-15 | 0 | |
| [2015] FWCFB 3406 | FWC — Full Bench | primary | 2015-01-01 | 0 | |
| [2013] FWCFB 6266 | FWC — Full Bench | primary | 2013-09-02 | 0 | |
| [2012] FWAFB 9086 | FWAFB | primary | 2012-11-01 | 0 | |
| [2012] FWAA 7616 | FWC | primary | 2012-08-28 | 0 | |
| [2010] FWAFB 9985 | FWAFB | primary | 2010-12-24 | Resolved | 0 |
| [2010] FWAA 5136 | FWC | primary | 2010-07-13 | 0 | |
| [2009] AIRCFB 942 | AIRCFB | primary | 2009-12-22 | 0 | |
| FWC | primary | 2004-07-22 | 0 | ||
| (1999) 79 WAIG 1930 | WAIRC — Single Commissioner | primary | 1999-06-16 | 0 | |
| [2020] HCA 29 | High Court | secondary | 2020-01-01 | For applicant | 12 |
| [2024] WAIRC 227 | WAIRC — Full Bench | secondary | 2024-05-21 | Against applicant | 3 |
| [2023] WAIRC 773 | WAIRC — Single Commissioner | secondary | 2023-09-22 | For applicant | 3 |
| [2016] FWC 525 | FWC | secondary | 2016-01-01 | For applicant | 1 |
| [2011] FWA 5491 | FWA (former) | secondary | 2011-08-25 | Against applicant | 1 |
| [2026] FWC 1529 | FWC | secondary | 2026-01-01 | For applicant | 0 |
| [2015] FWC 1044 | FWC | secondary | 2015-01-01 | Resolved | 0 |
| [2012] WAIRC 48 | WAIRC — Single Commissioner | secondary | 2012-02-03 | Resolved | 0 |
| [2025] FWC 1864 | FWC | mentioned | 2025-01-01 | For applicant | 0 |