Direction to take annual leave during a shut down
An employee can be directed to take annual leave during a shut down if their award or registered agreement allows it.
What is a shut down?
A shut down is when a business temporarily closes during slow periods of the year, such as Christmas and New Year. It is also called a 'close down'.
Find information about when an employee can be directed to take paid and unpaid annual leave during a shut down in your award by selecting from the list below.
Based on what you've told us, it looks like you're covered by the Restaurant Industry Award [MA000119].
Employees can be directed to take annual leave during a shut down. They have to be given at least 4 weeks notice before the leave needs to be taken.
If an employee doesn't have enough annual leave to cover the shutdown, they can agree with the employer to take:
- annual leave in advance or
- unpaid leave.
If an employee doesn't agree to either, they have to be paid their ordinary pay rate for the shut down. They can’t be forced to take unpaid leave.
Use the Notice of requirement to take annual leave for close down letter template (DOC 62KB) when directing employees to take annual leave during a shut down.
Accumulating annual leave during a shut down
An employee will continue to accumulate annual leave while on leave during a shut down period.
To find out more about who this award applies to, go to the Restaurant Award summary.
Source reference: Restaurant Industry Award [MA000119] clause 35.3
- Building, construction and on-site trades
- Contract cleaning services
- Don't know
- Hair and beauty
- Health support services
- Real estate
- Road Transport
- Social, community, disability and home care services
- Storage services and wholesale
A shut down isn't the same as a stand down. A stand down is when an employer sends employees home if there is no useful work for them to do. Reasons for stand down include events out of the employer’s control like a natural disaster. See Pay during stand down and severe weather for more information.
Direction to take annual leave under an agreement
If you’re covered by a registered agreement, check the terms of your agreement for information about when an employee can be directed to take annual leave during a shut down. To find a registered agreement, go to the Fair Work Commission website
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