As we gear up for the festive season, it’s crucial that you understand the implications of business shutdown obligations during the Christmas and New Year 2023/24 period.
The recent updates by the Fair Work Commission to 78 modern awards regarding business shutdown clauses shed light on how you can navigate this period effectively.
Understanding the Changes
A shutdown refers to the temporary closure of a business, specifically during the holiday season. The recent changes allow you to direct your employees to take annual leave during this shutdown period, given their awards or registered agreements permit it. However, there are important guidelines to follow:
- The directive to take annual leave during the shutdown must be reasonable, communicated in writing, and given to affected employees within a 28-day notice period.
- In instances where employees don’t have sufficient annual leave accrued, agreements can be made for them to take leave in advance or opt for unpaid leave.
It’s crucial to note that each award and agreement may have varying rules, emphasizing the importance of checking the specific award before instructing employees to utilize annual leave.
No Shutdown Rules in Awards or Agreements?
In cases where awards or agreements lack specific shutdown rules, you can only direct employees to take annual leave if the instruction is reasonable.
Working During the Shutdown
For employees who continue to work during the shutdown period:
- They should receive regular pay for their work.
- If a public holiday falls during the shutdown, employees should either be granted a day off without losing pay or be compensated at public holiday rates, as per their award or agreement.
Public Holidays and Overtime Requests
You may request your employees to work overtime or on public holidays, provided the request is reasonable. However, employees have the right to refuse the request if they have reasonable grounds. When asking employees to work on a public holiday, you must consider various factors, including business needs, employee responsibilities, personal commitments, notice periods, and contractual obligations.
Seeking Assistance
Staying abreast of changing shutdown rules and regulations can be challenging. Seeking expert advice can be invaluable in ensuring compliance with legal obligations.
If you need assistance in understanding and navigating these requirements, don’t hesitate to reach out to your local HR Dept.
