A recent decision of the Fair Work Commission proposes to amend the shutdown provisions in 78 Modern Awards by introducing a model term which differs from most existing shutdown provisions in several key respects.
According to their website, a ‘shutdown’ is when a business temporarily closes during slow periods of the year, such as Christmas and New Year. It is also called a ‘close down’.
The introduction of the proposed model term will mean that employers will no longer be able to direct employees to take a period of unpaid leave during a shutdown. And it will:
The Fair Work Commission is currently seeking submissions on the draft model term. The South Australian Business Chamber recognises that this is a significant decision that may impose a considerable burden on tens of thousands of businesses across Australia.
By denying employers the ability to direct employees who have not accrued any annual leave to take unpaid leave during a shutdown, businesses will be forced to bear the costs of paying employees while no work is being performed, entirely undermining the purpose of a shutdown.
The Australian Chamber of Commerce and Industry intends to lodge a submission. If this might impact your business, please complete a short survey, via the link below.
The survey can be accessed here >
The survey will close on 9 November 2022. Your details will remain anonymous.
