How to cash out leave

Modified on Thu, 24 Oct at 3:51 PM

Occasionally an employee may wish to cash out their unused annual leave instead of taking leave. This can be done when processing your regular payrun. 


  1. Pay the employee, then click Cash Out Leave.



  2. Enter the Amount of Hours the employee wishes to cash out.
  3. Click Save.




Certain rules apply when cashing out annual leave: 

  • an employee needs to have at least 4 weeks annual leave left over
  • a written agreement needs to be made each time annual leave is cashed out
  • an employer can't force or pressure an employee to cash out annual leave
  • the payment for cashed out annual leave has to be the same as what the employee would have been paid if they took the leave.

Check Fair Work Website for more information.




Related Articles


How to process a payrun


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