Paying Annual Leave as you go

A recent Court case has highlighted the need to only pay for leave as you go in certain situations - when your employee is employed fixed term for less than 12 months in total or on a genuine casual arrangement.  

The practice of just paying it out anyway has cost one employer 6 years of annual leave ($22,000) when the employer eventually left - in addition to having paid it all out each week.

You can also not pay out annual leave at the end of each year as a sort of bonus, as is the practice of some.  Only one week's annual leave per year may be paid out instead of being taken.  So the Courts are making it quite clear - if you pay someone out for annual leave (even with their agreement) they can later claim they have not had their minimum 3 weeks leave per year and you will have to pay up.

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