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Christmas Shutdown Rules for Award Employees

You must provide your employees with at least the required minimum written notice of a temporary shutdown period if you are directing them to take annual leave during the period. Most awards require at least 28 days’ written notice of the temporary shutdown or a shorter amount of notice if agreed with the majority of the relevant employees. Check your award for the minimum notice period that will apply.

This notice should include the dates the temporary shutdown period will start and finish, and the reason for the temporary shutdown.

From 1st May 2023 new rules have been introduced for many awards that sees the following:

  • Employers may require employees to take paid annual leave during a temporary shutdown
  • Employers must provide at least 28 days’ written notice of the temporary shutdown period to all impacted employees
  • The requirement to take annual leave must be reasonable
  • The notice period can be reduced through an agreement between the employer and the majority of impacted employees
  • An employee who doesn’t have enough paid annual leave to cover the whole period can form an agreement with their employer for other options for the days not covered, such as:
    1. Using accrued time off
    2. Annual leave in advance, or
    3. Leave without pay.

The employee will be paid for any public holidays during the shutdown period that fall on days they would normally work.

Take special note of clause 5.

Below is a link that will take you to your specific award to confirm your obligations. Some awards including the Building & Construction General Onsite Award requires you to give at least 2 months’ notice.

https://www.fairwork.gov.au/leave/annual-leave/directing-an-employee-to-take-annual-leave/direction-to-take-annual-leave-during-a-shut-down 

If you need any further information in relation to this or would like us to provide a letter to advise staff of the shutdown covering off on all your obligations, please feel free to contact us at ask@hrmcc.com.au or 07 5430 7750.

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