As well as providing your team with a break from work and come back refreshed to tackle 2025, shutdown periods (temporary closures) over the Christmas/New Year break are an effective way to reduce leave liability but we advise against blanket approaches.

The key areas to consider before communicating a shutdown are:

• Express the business preference for them to take Annual Leave (if this is available) starting from 1:1’s discussions around their holiday plans;
• Provide your team with at least 28 days’ notice of the shutdown in writing encouraging (not demanding!) the use of available Annual Leave during this period;
• Proceed to a written direction to take Annual Leave (if this is available) only if 1) you didn’t get agreement, 2) the direction is reasonable and 3) it’s allowed under the applicable Award (employees can’t be directed to take annual leave during a shutdown under the Social and Community Services Award and the Horticulture Award for example);
• If they don’t have Annual Leave available, the following options should be discussed and mutually agreed to:
  • Leave Without Pay; or
  • Annual Leave in advance; or
  • Work (and be paid) during the shutdown.

For those businesses that continue operating please ensure you are on top of Public Holidays days and applicable penalty rates and that a request to work is made to the team member first. Should they refuse, you can ask them the reason why and proceed to directing them to work only if their refusal is unreasonable.

Lookout for our next newsletter for our Xmas Party Do’s and Don’ts!