With Christmas around the corner, it is time to start planning for any Christmas shutdown plans for payroll.
An employee can be directed to take annual leave during a shut down if their award or registered agreement allows it. Most awards have rules about how and when an employer can direct an employee to take leave. For example, an employer may need to give the employee a set amount of notice (eg. 4 weeks) that they will need to take annual leave.
If an employee isn’t covered by an award or an agreement, their employer can direct them to take annual leave if the direction is reasonable. An employer and employee can agree that the employee takes annual leave (including in advance of accrual) or unpaid leave for the shut down time. The employee can’t be forced to take unpaid leave, unless an award or agreement allows for it, so if an agreement can’t be reached with their employer, they may need to be paid their ordinary pay for the time.
