The Fair Work Commission recently released the revised rules for annual leave. According to the ‘4 yearly review of modern awards - Annual leave’, business owners will now be able to compel employees to take annual leave if they have accrued an excessive amount.

The revised rules are being seen as a win by employer groups seeking a more flexible annual leave framework.

However, employees will now be able to cash out a portion of their annual leave, should their employer agree, as long as the residual balance is no less than four weeks of leave.

The Australian Industry Group head has welcomed the changes, saying that the new arrangements will give both employees and employers more flexibility. The Australian Council of Trade Unions president disagreed, explaining that allowing cashing out of entitlements defeated the very purpose of annual leave being for rest and recreation.

Companies implementing the Mitrefinch Time and Attendance system can eliminate the stress out of payroll, award and entitlement calculations. The employee time and attendance software can easily calculate base and overtime pay, weekend and public holiday penalties, as well as leave loading and shift penalties, ensuring consistent application of business rules as well as compliance with the new workplace legislation.