Fair Work Australia has advised that as of May 1, 2023, there are new rules regarding shutdowns in many awards.
A business shutdown refers to the temporary closure, during festive periods such as Christmas and New Year. For additional information please refer to the Direction to take annual leave during shutdown.
Under the new regulations, the following conditions apply:
- Employees have the authority to mandate that employees use their paid annual leave during the temporary shutdown.
- Employers are obligated to provide written notice of the temporary shutdown period to all employees who are effected, allowing a minimum of 28 days’ notice.
- The requirement for employees to take annual leave must be reasonable.
- The notice period can be shortened if an agreement is reached between the employer and the majority of impacted employees
- If an employee lacks sufficient annual paid leave to cover the entire shutdown period, alternative arrangements can be through an agreement with the employer. These options include:
- Using accrued time off;
- Taking annual leave in advance, or;
- Opting for leave without pay
During the shutdown period, if any public holidays coincide with the employee’s regular working days, the will receive compensation for those holidays.
Who the changes apply to:
These revised regulations are applicable to employers who fall under the scope of the affected awards.
The Fair Work Australia website contains the updated details regarding the guidelines for taking annual leave during a shutdown. This information encompasses various industries and awards, such as:
- Building and construction
- Hair and beauty
- Hospitality (e.g. fast food and restaurants
- Real estate
Access your industry via the Direction to take annual leave during shutdown webpage.
Which awards are changing?
The following list of award are changing:
Use the 3-step Find my award tool to figure out what you are covered by. If you already know your award, you can access a copy directly from the List of awards page.
For more information about these measures click here.