What is an annual shutdown?
An annual shutdown is a temporary close-down period, such as Christmas, when an employer can direct employees to take annual leave.
An annual shutdown (or close-down) is when a business temporarily stops operating — most commonly over the Christmas and New Year period. Many Modern Awards and enterprise agreements let an employer direct employees to take paid annual leave during a shutdown, provided proper notice is given.
The rules depend on the relevant award or agreement. Most awards now require the employer to give written notice (commonly at least 28 days) before a shutdown. If an employee does not have enough accrued annual leave to cover the period, the parties may agree to leave without pay for the balance.
Key facts
- •A shutdown is a temporary close-down, usually over Christmas and New Year
- •Most Modern Awards allow employers to direct annual leave during a shutdown with notice
- •Many awards require at least 28 days' written notice of a shutdown
- •Employees without enough accrued leave may take unpaid leave for the remainder by agreement
- •Whether a shutdown direction is allowed depends on the relevant award or enterprise agreement
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Leave Entitlements CalculatorFrequently asked questions
Can my employer force me to take annual leave over Christmas?
Yes, if your Modern Award or enterprise agreement allows shutdown directions and the employer gives the required notice. Most awards now require written notice, commonly at least 28 days.
What if I don't have enough leave to cover the shutdown?
If you don't have enough accrued annual leave, you and your employer can agree to take leave without pay for the remaining shutdown days, or in some cases agree to take leave in advance.
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