No Cashing Out Clause Samples
The "No Cashing Out" clause prohibits parties from converting non-cash benefits, such as stock options, vacation days, or other entitlements, into cash payments. In practice, this means that if an employee accrues unused vacation time or is granted equity awards, they cannot request a cash equivalent instead of the original benefit. This clause ensures that the intended form of compensation or benefit is preserved, preventing parties from circumventing the purpose of non-cash incentives and helping employers manage costs and maintain the integrity of their compensation structures.
No Cashing Out. (a) It is a breach of this Agreement for an Employee to be paid his/her full accrual, or part thereof, of annual leave at Christmas or any other time, unless that Employee takes such annual leave or his/her employment is terminated. Employment is not to be terminated for reasons of avoidance of this sub-clause.
No Cashing Out a) It is a breach of this Agreement for an Employee to be paid his/her full accrual, or part thereof, of annual leave at Christmas or any other time, unless
(i) that Employee takes such annual leave; or
(ii) has agreed to the cashing out of a full accrual/part accrual of annual leave in accordance with this clause; or
(iii) his/her employment is terminated. Employment is not to be terminated for reasons of avoidance of this sub-clause.
b) Paid annual leave can only be cashed out by agreement. An employer and an employee may agree in writing to the cashing out of a particular amount of accrued annual leave by the employee.