Preparing for Christmas Shutdowns: Changes to Modern Awards and What You Need to Know
In December 2022, the Fair Work Commission made significant changes to modern awards, affecting shutdown periods in Australia. Effective since May 1, these changes impact businesses. With many companies only shutting down for the year’s end, the lead-up to Christmas is the first time they feel the impact.
Key Changes:
A new “model clause” prohibits employers from directing unpaid leave during temporary shutdowns, such as Christmas and New Year.
Employers must provide written notice of shutdown periods, typically 4 weeks or 28 days in advance.
Employers can direct employees with sufficient annual leave to take it during a shutdown.
Employees can agree to take annual leave in advance, but this may affect their final pay.
Employers can seek written agreements for unpaid leave during a shutdown.
Employers cannot direct employees with insufficient leave to take leave in advance or unpaid leave.
Compliance Steps:
Decide if your business needs a temporary Christmas shutdown.
Confirm shutdown period dates.
Check applicable Modern Awards for notice requirements.
