Announcement! Prepare for your Christmas close down
Oct 31, 2024Is your close down period approaching? Here's everything you need to know!
With Christmas approaching quickly, now is the time to communicate with employees your business requirements over the Christmas and New Year period!
Whilst all companies do things slightly differently, it is common for business to either require more staff over the Christmas period, shut down for a period or require skeleton staff over this period. In some industries business will continue as usual.
Close down periods refer to a duration of time when a business reserves the right to shut down. The timeframe can range from a few days to a month and is purely as the discretion of the employer to decide how long, based on business requirements.
Communicating a close down period:
If you intend to shut down over a period, such as the Christmas and New Year period you are required to communicate the following in writing to employees:
- The dates of when the close down will start and finish;
- The reason the business is closing down;
- Leave requirements during this period (see FAQ below for more info)
Notice requirements:
The notice you need to give employees is dependent on the applicable award or agreement.
For example under the Retail Award the employer must give 28 days' notice, whereas under the Building and Construction Award requires 2 month's notice.
Employers are encouraged to check the award and or agreement that applies to their employees.
Frequently Asked Questions - here's what your employees may ask you
Can an employee be required to take annual leave during a shut down?
Yes, an employer can direct their employees to take annual leave due to closure over the Christmas and New Year period, as long as the relevant award or registered agreement states this. Under most awards an employer can direct an employee to take leave as long as the following requirements are met:
- The request is reasonable;
- The request is in writing; and
- The affected employee is made aware of the direction within the required notice period.
Important: it is recommended employers cross check the award before directing employees to take leave.
What if an employee has not accrued enough annual leave?
If the employee does not have enough annual leave for the entire close down period or part of the close down period, provided the award or agreement allows it, employees have the following options:
- The employee can go on approved unpaid leave. Key considerations to be mindful of include:
- unpaid leave must be mutually agreed upon by the employer and employee;
- the agreement needs to be confirmed in writing;
- the agreement must state the amount of unpaid annual leave the employee will take and the specific dates.
- Take annual leave before it has been accrued, known as 'negative leave'. Under most awards this agreement can be granted provided the following conditions are met:
- The employee and employer have entered into a written agreement for annual leave to be taken in advance;
- The agreement states the total amount of leave to be taken;
- The agreement includes a commencement date; and
- The agreement is signed by both parties.
- The employee may be able to work during the close down period. An agreement must be reached between the employer and employee to approve this decision. Key considerations include:
- is there meaningful work for the employee to complete during this time?
- if the available work differs from their original duties, does the employee have the skills and knowledge to complete the work to a high standard?
- is it safe for the employee to be at work? (i.e will there be other employees on site, does the duties require supervision?
- is there meaningful work for the employee to complete during this time?
Can an employee request to work through the Christmas period?
Employees may request to work through the Christmas period. It is recommended requests are submitted to the employer in writing for consideration.
If the days of work during this period are different than the employee’s normal working hours and days, this should be confirmed and approved in writing.
Does an employee get paid more to work during a shut down?
If an employee continues to work when a business shuts down, the employee will receive their normal pay.
In the case of a public holiday, an employee should be given the day off without loss of pay, or they should be paid the public holiday rates as per their award or agreement.
Does an employee get paid for the public holidays within the Christmas shut down period, whilst on annual leave?
If an employee is on paid annual leave during a shut down period and a public holiday falls on a full-time or part-time employee’s usual workday, the employer must pay the employee their base rate for the ordinary hours they would have normally worked.
Do you accrue annual leave while on annual leave over the Christmas shut down?
Annual leave accrues from the first day of employment and will accumulate when an employee is on paid leave, including paid annual leave.
The employee will not accumulate annual leave if they have taken unpaid annual leave.
Still have questions?
Please feel free to reach out to Employii via [email protected] and one of our HR Consultants will be in touch.
Author Jess Roughsedge (HR Officer)
