It is coming to that time of year again where Christmas is around the corner and the New Year follows shortly thereafter. Are you shutting down for the break? Do you know the rules?
Many businesses shut down over the Christmas/New Year break, making it mandatory for their staff to take annual leave. Please be aware that many employment awards were updated in May 2023 regarding rules on taking annual leave during a shutdown. Here is an overview of the new rules.
Apart from the rule changes, below are some essential housekeeping for those that are planning to shut down over the break:
- Notify all employees of your intention as a Business Owner to shutdown, and the planned shutdown dates (minimum 4 weeks’ notice required).
- Ensure that leave requests are submitted well before the end of the last pay period before the break.
- Request that your Bookkeeper calculate days each employee will not be present at work and is entitled to leave. They will identify which employees do not have enough leave accrued.
- Be across any employees working during the shutdown period or on a public holiday, including any relevant penalty rates or changes to the rate of pay for any employee.
- Confirm if leave is to be paid during a normal pay cycle, before Christmas, or when the shutdown is to occur.
- Is there a pay run during the shutdown, and if so, what are the implications (if any)?
For more information on what is required of you if a Christmas/New Year shutdown is being planned review this knowledge-base article.
