Official form guide
Form agreement to cash out annual leave: Agreement to cash out annual leave
The Agreement to Cash Out Annual Leave is a written record that an employer and employee sign when the employee chooses to be paid for some of their accrued annual leave instead of taking time off. Use it whenever you want to cash out part of annual leave under an award, registered agreement, or for award‑free employees.
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Form Overview
Fair Work Ombudsman Form agreement to cash out annual leave - Agreement to cash out annual leave
The Agreement to Cash Out Annual Leave is a written record that an employer and employee sign when the employee chooses to be paid for some of their accrued annual leave instead of taking time off. Use it whenever you want to cash out part of annual leave under an award, registered agreement, or for award‑free employees.
Risk Radar
Scan points- 1Often the employee’s remaining leave falls below the required 4 weeks.
- 2Employee ends up with less than 4 weeks of leave
- 3Payment amount does not match the employee’s normal rate
- 4Employer pressures the employee to cash out
- 5Missing parent/guardian signature for under‑18 employees
Plain English
If you and your boss agree you’ll get money for a chunk of your holiday, you both sign this form. It shows how many hours or days are being cashed out, the payment amount, and when you’ll be paid.
Submission Date
- Filing date: Complete the form at the time you agree to cash out the leave, before the payment is made. Not confirmed in official source for any external filing deadline.
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- When an employee elects to be paid for part of their accrued annual leave instead of taking time off.
- When the employee’s award or registered agreement permits cashing out leave, or when the employee is award‑free.
- When you need a written record that both employer and employee have agreed to the cash‑out terms.
Form selector
Use this form or another form?
Employee wants to take time off instead of cashing out
Records the leave dates rather than a payment
✓ Verify the employee has enough accrued leave
Employer wants to reduce leave balance without payment
Cash‑out cannot be used to simply delete leave
✓ Check award or agreement for any other leave reduction mechanisms
Not applicable – cash‑out must involve payment
Employee under 18 without parent/guardian signature
Guardian signature is mandatory for minors
✓ Obtain parent/guardian consent before proceeding
Deadline or filing window
Not confirmed in official source for any filing deadline; keep the agreement on file as soon as the cash‑out is agreed.
Before you submit
- 1Read the employee’s award/registered agreement for cash‑out rules.
- 2Calculate the leave hours/days to be cashed out and confirm the 4‑week minimum balance.
- 3Enter the exact amount of leave (hours or days) in the agreement.
- 4Enter the correct payment amount, including any tax deductions as applicable.
- 5Specify the payment date clearly (day/month/year).
- 6Obtain the employee’s signature and date.
- 7Obtain the employer representative’s signature and date.
- 8If the employee is under 18, obtain the parent/guardian’s signature and date.
- 9Make a copy of the signed agreement for the employee’s file.
- 10Retain the original with the employer’s payroll/leave records.
How to file this form
- 1Download or print the Fair Work Ombudsman cash‑out template.
- 2Complete all fields: employee name, employer name, leave amount, payment amount, payment date.
- 3Gather required signatures (employee, employer, and guardian if needed).
- 4Make a clear copy for the employee’s records.
- 5Store the original with the employee’s leave and payroll documents.
- 6Update the payroll system to reflect the cash‑out payment on the agreed date.
Known limitations
- 1Only for cash‑out of annual leave; cannot be used to record ordinary leave taken.
- 2Employer cannot force or pressure an employee to cash out leave.
- 3The agreement must be written; verbal agreements are not valid.
- 4Award or agreement may impose additional limits on amount or timing – not detailed in the template.
- 5The form does not need to be submitted to the Fair Work Ombudsman; it is kept as a workplace record.
Field map
Compact field-by-field guide
Applicant
1 items
Full name (and representative, if any), postal address, email, and phone number of the person or organisation lodging the application.
Respondent
1 items
The exact legal name and ABN of the employer or other party the application is made against.
The Matter
2 items
Identify the kind of matter — for example, unfair dismissal, general protections, or an agreement application.
A clear description of what happened, relevant dates, and the outcome you are seeking.
Dates
1 items
Relevant dates such as the date of dismissal or the date the issue arose — these determine whether you are within time.
Supporting
1 items
Any documents that support your application, such as letters, contracts, or notices.
Declaration
1 items
Sign and date the form. Applications may also require a fee or an application for a fee waiver.
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Fillable formOpen in Editor->The template is the current Fair Work Ombudsman version; no recent updates are noted in the source.
What changed or needs a fresh check
- Confirm the employee will still retain at least 4 weeks of annual leave after cash‑out.
- Verify the award or registered agreement allows cash‑out and note any limits on amount or timing.
- Ensure the payment amount matches the employee’s ordinary rate of pay for the leave.
- Check that all required signatures are present, including a guardian if the employee is under 18.
- Record the date the payment will be made and keep a copy with the employee’s records.
Quick Facts
Downloads & source
Sources
- SRCCash‑out definition and award/registered agreement allowancesource p.1.
- SRCMinimum 4 weeks leave must be retainedsource p.1.
- SRCPayment must equal ordinary pay ratesource p.1.
- SRCEmployer cannot force cash‑outsource p.1.
- SRCWritten agreement required, with signaturessource p.1.
- SRCAgreement must state amount of leave, payment amount, payment datesource p.1.
- SRCGuardian signature required for employees under 18source p.1.
- SRCFields on the two‑page template (employee name, employer name, leave amount, payment amount, dates, signatures)source p.2.
Common confusion points
Thinking the form can be used when the award does not allow cash‑out.
Forgetting to check that at least 4 weeks of leave remain after cash‑out.
Entering the payment amount without matching the employee’s ordinary rate of pay.
Omitting the guardian signature when the employee is under 18.
Assuming the form needs to be lodged with a government agency.
Not keeping a copy of the signed agreement for the employee’s records.
Over‑cash‑out – exceeding any award‑specific limits that may exist.
Leaving the payment date blank or using an ambiguous format.
Source transparency
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