KEEPING UP TO DATE
New shutdown rules for awards
2 May 2023
From 1 May 2023, many awards will have updated rules on taking annual leave during a shutdown.
A shutdown is when a business temporarily closes, such as during Christmas and New Year. Learn more about shutdowns at Direction to take annual leave during a shutdown.
The new rules mean:
- employers may require employees to take paid annual leave during a temporary shutdown
- employers must provide at least 28 days’ written notice of the temporary shutdown period to all impacted employees
- the requirement to take annual leave must be reasonable
- the notice period can be reduced through an agreement between the employer and the majority of impacted employees
- an employee who doesn’t have enough paid annual leave to cover the whole period can form an agreement with their employer for other options for the days not covered, such as:
- using accrued time off
- annual leave in advance, or
- leave without pay.
The employee will be paid for any public holidays during the shutdown period that fall on days they would normally work.
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