Business Research Corporate Cash Reserve

Question: Describe about the Business Research for Corporate Cash Reserve. Answer: Part A This project sets out to provide a presentation of a report on the effects of annual leave on the business. It also presents an overall effect of the annual leave on the cash flow of the business. Under ordinary circumstances, an employer can accord his or her employee's annual leave in two likely events: that is, when the employee shave had an accumulation of excess annual leave and when the business is seeking to close down due to such periods as Christmas and New Year eve. This is well documented in the registered award agreements. From a legal point of view, one is allowed to take up to four weeks of paid annual leave. This is after one has worked for the company for a continuous period of up to a year without taking a break. For instance, if an individual works for say, five hours in every seven days, then this means that they can take up to four weeks that is the equivalent of one annual leave. That is 20 hours in total. It is important for both the employers and the employees to take note of the fact that an individual has his or her annual leave hours carried forward to the next year in the event that they do not use them up. This gives room for the individual employees to take up two of their annual leaves for weeks in a continuous manner if the individual so deems the arrangement fit. It is also important to note that these provisions are just but provided for by the minimum legal provisions, but more space is provided for by the employment agreement that is specifically tied to a given company policy. They could be more. As a matter of fact, one's employer can offer pay what is known a pay as you go kind of leave. This kind of arrangement should only be used in such instances as to when one is a casual laborer or employee and as such, their unpredictable working conditions makes it almost impracticable to have paid holidays. There are other instances when the individual is on a fixed arrangement of employment terms for a period less than 12 months. This applies to such cases as when one is employed to work at a concert or where there are events marking a night presentation or a two-day conference. This means that the employee under such an arrangement can go up to months before hearing from their employer as these events do not happen on a daily basis, but only when they are organized. There are instances when the employee can request to be paid off their leave in cash, as opposed to being granted days off. That can be achieved through a communication between the employee and the employer. In the event that the matter does not work, or the employer feels that the amount provided is not sufficient, then there comes a sufficient ground for the aggrieved to table their grievances in the Employment Relations Authority. However, there are companies that do not provide for the payment of the annual leave in cash. This is a matter that must be determined by the respective companies as it is their policies that support or discredits the same and every company has its own policy regarding annual leave. Part B: Possible impacts on the cash flow of the business if too many staff have accrued high levels of annual leave. Cash flow is a very integral component of the business finances. This is a fact that is actually seen to be the lifeblood of the business. This is a very important consideration as it becomes very critical that one learns all the possible scenarios with regard to cash flow and the general effects of annual leave on business finances. It is very necessary for the employers or the stakeholders to understand the cash flow effects on the overall proceeds of the company, otherwise, the company can be deemed to have some kind of serious business ramifications on the business. For instance, the business may face some crippling effects such as finding it hard to pay the bills of the company. Much as it is important for the business to have a well-defined cash flow, sometimes it is very necessary for the stakeholders to have an understanding of the impacts of employee leave on the overall cash flow within a given company. One of the major problems companies face is what employees accrue in excesses of amounts that come from the annual leave. This means that it becomes very tricky for the company to cope with the absence of the employees from work in the name of being on leave. It is a matter of fact that with the absence of many workers from work, the productivity of the company becomes reduced and this will have a direct bearing on the general cash flow within the company. It should also be noted that the absent employees attract the same amount of payment in dues as those on duty and with reduced production, it is automatic that the company will spend more than it produces in terms of cash. This will definitely bear a great effect on the cash flow of the company. Whenever the employees opt for cashed leave and the individuals resort to accruing the same, this might have a net effect on the overall cash flow of the company. In actuality, the employees may end up having huge cash net hanging over their heads. If the employees are given so much time on their annual leaves, then the business can face some backlog in terms of production and this can have an overall effect on the performance of the company. Works Cited Harford, Jarrad. 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