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Business 2 Business column: Annual shutdown periods approach

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It’s that time of year again when Christmas is fast approaching, and many businesses will shut down over the Christmas and New Year period.

Most awards allow this. Usually, the awards require employees to be provided with 28 days’ written notice prior to a shutdown period, confirming the dates of the shutdown.

What has changed this year is that 78 modern awards include a new ‘model term’.

This new term allows employers to direct employees in writing to take any accrued annual leave during such a period.

However, if they don’t have enough leave, employers can agree in writing for the employee to take:

  • leave without pay; or
  • take annual leave in advance.

If no agreement is reached, the employee will be entitled to be paid during the shutdown period or, alternatively, they can be provided with work to undertake during this period.

An employee who is engaged after the 28-day written notice has been given must receive notice as soon as reasonably practicable after the employee is engaged.

Michalle Faulkner, Managing Director, EastCoast HR Group, Suite 9, 68 Jessica Boulevard, Minyama, 5443 6022, eastcoasthr.com.au

This column is part of our Business 2 Business (B2B) series featuring industry leaders sharing their expertise. For more great articles, SUBSCRIBE to our FREE news feed, direct to your inbox daily. All you need to do is enter your name and email below.

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