Is your business planning on running on skeleton staff over the Christmas period or closing down?
Now is the time to start planning the specifics of your Christmas shutdown and to notify your staff accordingly. Many awards and agreements allow you to direct staff to take annual leave, or unpaid leave where annual leave has been exhausted, during a close down. There are however different requirements in each award about how much notice you need to provide and whether you can direct staff to take annual leave or unpaid leave. Some awards require 3 months’ notice of a close down.
Under the Fairwork Act any employer can direct employees to take annual leave for a period of any shutdown over Christmas. However, the act specifies that the employee must have the leave accumulated. If the employer wants employees to take unpaid leave they need the employee’s consent. Alternatively, the employer could allow the employee paid leave in advance of it accruing. The employee then is not entitled to any further leave until they accrue enough to cover the advance.
If you are asking staff to take compulsory leave over Christmas, it may also be sensible to get an agreement from those employees (in writing) that if they fail to accrue enough additional leave prior to termination that the amount which remains advanced can be deducted from any other final payments to be made on termination.
I am a Registered BAS Agent Number 2480 65 84 and you can contact me on 0400 102 358 or email me at bookkeepingfairy@eftel.net.au. if you have any queries on GST.
Check out my website www.bookkeepingfairyperth.com.au or contact Jaleana 0400 102 358