Managing Annual Leave And Shutdowns During Christmas 2023

As the festive season of Christmas 2023 draws near, it's important for businesses to determine if they will have a temporary shutdown during this period and decide on the duration of such closure.

Starting from May 1, 2023, amendments have been made to Awards, requiring employers to issue written notices to all affected employees detailing the commencement date of the temporary shutdown and the date they should return to work. For instance, the Plumbing and Fire Sprinklers Award 2020 mandates employers to give a written notice at least two months before the impending temporary shutdown.

Furthermore, the updated model term prohibits the practice of instructing employees to take unpaid leave during temporary shutdowns (like Christmas Shutdowns) for the entire duration. Instead, during a temporary shutdown period:

• Employees have the option to utilize their accrued paid annual leave.
• Employers and employees can mutually agree, in writing, to take unpaid leave once the employee's paid annual leave has been exhausted.
• If an employee lacks sufficient accrued paid annual leave to cover the entire shutdown period, they may take paid annual leave in advance, following the existing "annual leave in advance" clause within each Award.

For employees newly engaged within the notice period (2 months for the plumbing industry), notification of the impending temporary shutdown must be provided as soon as practically possible after their engagement.

To ensure compliance with these new regulations, employers must review their existing procedures and guidelines for annual shutdowns, update materials pertaining to Award-covered employees, and make necessary adjustments to their payroll and employee management systems.

For more information about leave entitlements, utilise our HR Advisory Services, available to MPAQ members.

HR Advisory Services

MPAQ members have access to HR Advisory Services, which provide support and information specific to your business’s needs. Whether you need advice on wages and awards, leave entitlements, performance management, enterprise agreements, WorkCover requirements or dispute resolution, taking on an apprentice, or the legislation relating to these areas, we've got you covered.

For HR advice, call us on 07 3273 0800 or email hr@mpaq.com.au.