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February 26, 2018

Is purchasing annual leave permissible?

Can an employee ask to not be paid for hours worked (as a one-off) and have their payment converted to annual leave instead?

Generally, you can agree with award/agreement-free employees to provide extra annual leave in exchange for foregoing an equivalent amount of pay. This is often described as ‘purchased annual leave’. For employees covered by an award or agreement, this is only allowed if provision is made for it in the relevant award or agreement.

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