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Your questions answered: Can we offer our staff annual leave in lieu of a bonus?

By Portner Press on March 4th, 2019
  1. Employee Management
  2. Leave Provisions

 

Q
We would like to give employees 5 days’ additional annual leave, awarded as a one-off bonus. We would like to stipulate that the leave must be taken within 12 months, cannot be paid out on termination and cannot be cashed out. Is this compliant with the Fair Work Act, and is there anything else we should be aware of before implementing this?

 

A
This arrangement is fine. You should be aware that, as annual leave accrues on paid leave, employees will be accruing leave when taking the bonus leave.

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