A shutdown is when a business temporarily closes, such as during Christmas and New Year. A shutdown isn’t the same as a stand down, which is when an employer tells employees not to work because they can’t be usefully employed for reasons outside the employer’s control.

The new rules mean employers may require employees to take paid annual leave during a temporary shutdown.

Under the rules, employers must provide at least 28 days’ written notice of the temporary shutdown period to all impacted employees. The requirement to take annual leave must be reasonable.

The notice period can be reduced through an agreement between the employer and the majority of impacted employees.

An employee who doesn’t have enough paid annual leave to cover the whole period can form an agreement with their employer for other options for the days not covered, such as:

• using accrued time off
• annual leave in advance
• leave without pay.

The employee will be paid for any public holidays during the shutdown period that fall on days they would normally work.

A list of awards that are changing is available via the Fair Work Ombudsman.

How the Victorian Chamber can help

Is your business compliant with payment and Award obligations? When it comes to wages, awards and entitlements, the Victorian Chamber can ensure that your business complies with the law by receiving professional support from the Victorian Chamber’s Workplace Relations Advice Line.

If you have any queries about the shutdown changes, or to discuss any workplace matters, please contact our Workplace Relations Advice Line on (03) 8662 5222.