With the end-of-year holiday season approaching, it’s time for both employers and employees to plan ahead for how their business operations and schedules might be affected.
For some businesses, this season means ramping up operations, with employees working extra hours or even on public holidays. Other businesses might slow down, opting for a temporary closure (often called a “close down”) or reducing staff hours. Here’s a guide to the rules and entitlements that may apply during this period.
Requiring Annual Leave During a Shutdown
The rules for requiring annual leave during a shutdown depend on the type of employment arrangement an employee is covered under.
Employees Covered by Awards or Agreements
Employers can require employees to take annual leave during a shutdown if their award or registered agreement permits it. Many awards have specific provisions for directing employees to take annual leave during a shutdown, which usually must be:
– Reasonable
– In Writing
– Provided with Adequate Notice (as specified in the award)
In some cases, employers and the majority of affected employees can agree on a shorter notice period. Certain awards also specify that shutdowns are only allowed during specific periods, such as the end-of-year.
Employees Without Award or Agreement Coverage
If no award or agreement applies, employers may only direct employees to take annual leave if the direction is considered reasonable.
Employees with Insufficient Annual Leave for Shutdowns
If an employee doesn’t have enough annual leave accrued to cover a shutdown, and the award or agreement allows, they can make an arrangement with their employer to take:
– Annual Leave in Advance
– Unpaid Leave
If the award or agreement lacks shutdown provisions, employers can’t require annual leave during a shutdown. However, employees and employers can agree on annual leave (even if not yet accrued) or unpaid leave for the shutdown period.
Working During a Shutdown
If employees continue to work while a business is temporarily closed, they are entitled to their regular pay.
For any public holidays that fall during a shutdown, employees should either have the day off with full pay or be paid at public holiday rates, as specified by their award or agreement.
Overtime and Public Holiday Work Requests
Employers can ask employees to work extra hours or on public holidays if it’s reasonable. However, employees may refuse based on reasonable grounds. When requesting work on a public holiday, employers should consider factors like:
– Business Needs
– Employee’s Role and Responsibilities
– Personal Commitments (e.g., family or caregiving)
– Advance Notice Provided
– Employment Contract Terms
This approach ensures that holiday operations are fair and lawful, benefiting both business needs and employee wellbeing.
