Annual Holidays Cash Out Offer |
This is an anonymous survey - individual respondents cannot and will not be identified.
The Government has made an offer to amend the Annual Holidays Act. The proposed changes will enable public servants to cash out accrued Annual Leave (Recreation Leave in PSA awards) on the basis that:
• the employer and employee agree
• the employee would still have four weeks’ annual leave remaining
• payment is not less than at the employee’s ordinary pay.
You can read a PowerPoint summary of the proposal HERE.
The ability to cash out leave is already available to our members covered by the Fair Work Act 2009. The capacity is also available to workers who work shift work or at remote locations for the excess leave that they are paid annually in excess of four weeks per year.
The NSW Government’s proposal aims to extend the availability to people to cash out up to two weeks’ annual leave per year.
Our legal advice states there would also need to be a change to the Crown Employees (Public Service Conditions of Employment) Award and other awards.
Advantages
• All non-casual employees who accrue annual leave will be able to cash out leave in excess of four weeks by agreement.
• There may be a cost savings for Departments as there will be a need to only find relief and acting (higher duties) in possibly two instead of four weeks on average across the sector.
Disadvantages
• Employees may feel pressured to cash out leave. However, the PSA would dispute any employer pressuring an employer to do this.
• There is no productivity offset or efficiency offering on the table to compensate public servants for reducing employee expenses. This includes reducing government leave liability (both absolute days, and net present value of future increment and pay rises), or by reducing direct costs such as the additional on costs that are built up as you take leave, or the reduced cost of relief and acting up arrangements.
• the employer and employee agree
• the employee would still have four weeks’ annual leave remaining
• payment is not less than at the employee’s ordinary pay.
You can read a PowerPoint summary of the proposal HERE.
The ability to cash out leave is already available to our members covered by the Fair Work Act 2009. The capacity is also available to workers who work shift work or at remote locations for the excess leave that they are paid annually in excess of four weeks per year.
The NSW Government’s proposal aims to extend the availability to people to cash out up to two weeks’ annual leave per year.
Our legal advice states there would also need to be a change to the Crown Employees (Public Service Conditions of Employment) Award and other awards.
Advantages
• All non-casual employees who accrue annual leave will be able to cash out leave in excess of four weeks by agreement.
• There may be a cost savings for Departments as there will be a need to only find relief and acting (higher duties) in possibly two instead of four weeks on average across the sector.
Disadvantages
• Employees may feel pressured to cash out leave. However, the PSA would dispute any employer pressuring an employer to do this.
• There is no productivity offset or efficiency offering on the table to compensate public servants for reducing employee expenses. This includes reducing government leave liability (both absolute days, and net present value of future increment and pay rises), or by reducing direct costs such as the additional on costs that are built up as you take leave, or the reduced cost of relief and acting up arrangements.