The holiday season is just around the corner and business owners will soon be planning the Christmas and New Year working arrangements for their businesses, if they haven’t already done so. For businesses that plan on closing down for any period over the holidays, there are a couple of important things to look at to ensure compliance.
Notice periods for employees
Most modern awards require managers to provide sufficient notice to their employees in relation to Christmas working arrangements and any shutdowns occurring over the holiday period. Employers should also check the minimum amount of notice required for employees under an agreement.
The period of notice required differs between awards. For example, the Building and Construction General On-site Award, requires an employer to give at least two months’ notice of a shutdown whereas, under the Security Services Industry Award, an employer must provide at least one month notice in writing before the leave needs to be taken.
For employees who do not fall under an award or agreement, the Fair Work Act allows for managers to request that workers take a period of paid annual leave so long as it is considered ‘reasonable’, such as if a business shuts down for a period over Christmas and New Year.
Providing workers with ample notice in relation to Christmas working arrangements will ensure that employees have plenty of time to plan for and request leave, allowing employers to manage leave efficiently and implement effective workforce planning.
Directing employees to take annual leave
Businesses who close for a period during Christmas and New Year, are in effect directing employees to take annual leave during the shutdown; and there are a few important steps to consider. The most important step is to check the terms in the award or agreement relating to an employer’s right to send employees on an annual shutdown, which will outline if and when an employer can direct workers to take annual leave.
Most modern awards will contain terms which allow employers to send employees on an annual shutdown. Where an employee is award or agreement free, and there is no mention of annual shutdowns or directions to take leave in a written contract, an employer cannot force an employee to use their leave.
Instead, managers can negotiate with workers to take paid or unpaid leave keeping in mind that if an agreement cannot be reached, the employer is required to pay the employee their ordinary hourly rate for the time they would have worked while the business is closed.
In retail or hospitality and need advice on refusing leave requests during the busy Christmas and New Year period? Check out our article.
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