Cashing out sick and carer's leave

Cashing out sick and carer's leave means employees get payment instead of taking the time off work.

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Who can cash out sick and carer's leave

Most awards don’t allow sick and carer's leave to be cashed out.

Employees covered by a registered agreement can cash out sick leave if the agreement allows it.

Only 2 awards allow employees to cash out sick and carer's leave. These are:

The awards contain rules about when this can happen. To work out if 1 of these awards applies, check the coverage and job classification clauses.

What conditions apply if cashing out is allowed

Sick and carer's leave if allowed by an award or registered agreement, can only be cashed out if all the following conditions are met:

  • a separate agreement is made in writing each time leave is cashed out
  • the employee has a balance of at least 15 days of untaken paid sick and carer's leave after cashing out
  • the employee is paid at least the full amount they would have been paid if they actually took the leave.

An employee can't cash out their built-up sick and carer's leave if these conditions aren't met.

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