The Christmas and New Year break is approaching, it’s critical to be across the current Fair Work rules to ensure you remain compliant.
A ‘shutdown’ is a temporary closure of a business, such as over the festive season. The rules for directing award-covered employees to take annual leave changed in 2023.
– Employers may require an employee to take their accrued paid annual leave during the shutdown, provided the direction is reasonable.
– An employee who does not have enough accrued annual leave to cover the entire shutdown period cannot be forced to take unpaid leave. The employee must either agree in writing to take Annual leave in advance, Accrued time off (e.g., TOIL or RDOs), or Leave without pay.
If an agreement is not reached, the employee must be paid their ordinary wages for the days not covered by their accrued leave as the employee is ready, willing and able to work.
Employees are entitled to be paid for any public holidays that fall during the shutdown period, provided they would ordinarily have worked on that day. This rule applies even if the employee is on a period of unpaid leave by agreement.
To prepare for your Christmas and New Year shutdown:
Confirm Dates: Determine your exact closure and re-opening dates.
Check the Award: Confirm the specific rules, notice period, and requirements of the modern award that covers your staff.
Check Leave Balances: Review all employee annual leave balances now.
Issue Notice: Provide the mandatory minimum 28 days’ written notice to all affected employees.
Manage Shortfalls: Engage with any employee who has insufficient leave to secure a written agreement for leave in advance or leave without pay.
Need Assistance?
Let us know about your planned workplace closure now and we’ll check leave requirements for the summer holidays.
