Are you prepared for the Annual Shut Down?
If your business is planning a Christmas Closure for a week or a number of weeks, it is important that you understand your employee relations obligations in managing the shut down for that period, as these rules have recently changed.
The main underlying principles of the change and that Employers cannot force an employee to take unpaid leave during a planned shut-down period. To better understand the specific obligations applicable to your business, it is important to understand what is required under the Industry Award or Enterprise Agreement relevant to your employees. The provisions are not the same in all cases.
In some instances, the Industry Award or Enterprise Agreement will provide employers with the ability to give an employee a reasonable direction to take Annual Leave, on the condition that sufficient written notice is provided, (to the timeframe specified in the award/agreement) and that an employee is consulted on alternative options and that any objections are managed well. Such discussions should be approached with care so that the employee is not seen to be coerced into an agreement.
Where these terms do not apply:
When there are no provisions set out within the Industry Award or the Enterprise Agreement, an employer can:
- Seek agreement from an employee to take the Annual Leave.
- Seek agreement from an employee to accrue and take TOIL for the period.
- Seek agreement from an employee to take unpaid Annual Leave.
- Seek agreement from the employee to be paid Annual Leave in advance to be accrued back to a positive balance after the fact.
My Employee will not agree to these options what can I do?
There may be other avenues to get agreement on how this can be managed, however ultimately in some instances an employer may need to consider a basis from which they can supply the employee with work during the shutdown period or pay the employee while they stay home.
What is Best Practice
- Understand what the Award or Agreement allows for in respect to Shut Down periods.
- Pre-communicate in writing the shut-down planning for the business as early as possible and engage your employees about their intentions.
- Consider adjustments to clauses in contract of employments and your HR policies to provide for a Shut Down period. This gets in front of the issues and avoids the issue of disputes arising.
If you need advice on what to do and how to manage this shut down the right way please contact us at Active HR.