Many businesses are likely planning on how their businesses will operate during the end-of-year holiday season.
Some businesses will be thinking about how they need to scale up their workforce as they will be getting busier this time of year and may need their employees to work on public holidays or more hours. Some businesses may need to shut down (“close down”) or reduce their employee numbers during this period
Employers need to be mindful of the different rules that apply during a shutdown depending on what covers an employee.
If an employee is covered by an Agreement or Award, an employer can direct their employees to take annual leave during a shutdown if their award or registered agreement allows it.
Most awards have rules about how and when an employer can direct their employees to take annual leave. If you are not sure it is best you give one our helpful Workplace Advisers on our Business Advice Hotline a call on (08) 8300 0000 (select option 1).
However, in most cases, the direction to take annual leave during a shutdown must be:
Certain awards allow employers and a majority of affected employees to agree on a shorter notice period for a shutdown direction and an award may also provide that a business can only close during certain periods, such as the end-of-year period.
Numerous awards have clauses about annual leave during shutdowns. It’s important to recognise that each award and agreement is different, so you should check yours to make sure before you give employees any directions to use annual leave.
If an award or agreement doesn’t have rules allowing the direction, employers can’t direct their employees to take annual leave during a shutdown. Employees can agree with their employer to take annual leave (including before they’ve accrued it) or unpaid leave during the shutdown.
For those employees who are Award and agreement free, they can only be directed by their employer to take annual leave if the direction is reasonable.
If the award or agreement allows it, employees can agree with their employer to take annual leave before they’ve accrued it or unpaid leave.
How we can help
Find out about the rules and entitlements during the end-of-year holiday season that may affect you by contacting our Business Advice Hotline on (08) 8300 0000 (select option 1) or lodge your on-line query here and one of our Workplace Advisers will get back to you.
