The festive season is a time for family, friends and celebration. But for many Australians, it’s also a time when their employer shuts down the business for a week or two. This can be a great opportunity to relax and recharge, but it can also raise questions about your leave entitlements.
What is a ‘shutdown’?
A shutdown is when an employer temporarily closes their business (or part of it). This usually happens during holiday periods like Christmas/New Year, when there’s less business activity.
Can your employer make you take leave during a shutdown?
For employees covered by an award or registered agreement, an employer can direct them to take annual leave during a shutdown if the award or agreement allows it. Most awards have rules about this, including:
- The direction must be reasonable;
- It must be in writing;
- Employers must give at least 28 days’ written notice of the shutdown, (although, some awards allow employers and employees agree to shorter notice);
- Some awards only allow shutdowns at certain times, like the end of the year; and
- Employers can only direct employees to take paid leave that they’ve already accrued.
What if you don’t have enough annual leave?
If you don’t have enough annual leave to cover the shutdown, you and your employer might agree to you taking:
- Annual leave in advance; and/or
- Unpaid leave.
Importantly, your employer can’t force you to take unpaid leave. If you don’t agree to any of these options, your employer must either:
- Let you work, if possible; or
- If it is not possible for you to work, pay you for the shutdown period.
Employees not covered by an award
If you’re not covered by an award or registered agreement, your employer can only direct you to take annual leave if it’s reasonable. A direction to take leave during a shutdown, at Christmas, could be a reasonable direction. However, your employer cannot direct you to take unpaid leave.
What if you can’t agree with your employer?
If you can’t agree with your employer about leave during a shutdown, you can contact us for advice. Call us on (02) 9199 8597 or email us to ensure your employer’s shutdown procedures comply with all relevant laws and awards.
The information contained in this post is current at the date of editing – 13 December 2024.
