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.
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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 Plumbing and Fire Sprinklers Award [MA000036].
Employees can be directed to take annual leave during a shut down. They have to be given at least 2 months’ notice before the leave needs to be taken.
If an employee doesn’t have enough leave to cover the shutdown, they will have to take:
- all of their accrued annual leave and then unpaid leave for the rest of the shut down or
- unpaid leave for the whole shut down period.
An employer can only shut down the business over the Christmas and New Year period.
Use the Notice of requirement to take annual leave for close down template letter (DOC 113KB) 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 only when on paid leave during a shut down period.
To find out more about who this award applies to, go to the Plumbing Award summary.
For annual leave entitlements in this award, go to Plumbing and Fire Sprinklers Award [MA000036] clause 24
- Building, construction and on-site trades
- Contract cleaning services
- Don't know
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- Health support services
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- Social, community, disability and home care services
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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 inclement weather and stand down 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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