Shutdown

Shutdowns are planned closures of a business, typically during holidays or between Christmas and New Year. During this time, operations are temporarily halted and employees may be required to take leave. These shutdowns are often scheduled in advance and may be a part of workplace policies or agreements.

Directing annual leave during a shutdown

Many awards allow an employer to require employees to take annual leave during a shutdown, such as over Christmas and New Year, if you give the notice the award requires (often 4 weeks). Employees who do not have enough leave may be able to take leave in advance or unpaid leave, depending on the award. Award and agreement free employees can be required to take annual leave only if the requirement is reasonable. Public holidays during the shutdown are paid as public holidays, not as annual leave. For example, a manufacturer closing for two weeks over Christmas should give staff notice under its award well in advance.

Read our annual leave guide.