KEEPING UP TO DATE

New shutdown rules for awards

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.