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Fair Work issues advice about employee management for end of year
Freya Lucas
Nov 07, 2024
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For many businesses and services, including those operating in early childhood education and care (ECEC), the end of the calendar year is a busy time, one which requires a lot of planning to ensure that employees are well supported, and clear about operations for any public holidays and closure periods.
To support businesses of all types, including those in ECEC, the Fair Work Ombudsman has issued advice, support and guidance which has been summarised and contextualised to ECEC in the piece below. Access the original content here.Using annual leave during a shutdown
There are different rules that apply during a shutdown depending on what covers an employee.
Agreement or award employee
An employer can direct their employees to take annual leave during a shutdown if their award or registered agreement allows it.
Most awards have rules about how and when an employer can direct their employees to take annual leave.
In most cases, the direction to take annual leave during a shutdown must be:
- reasonable
- in writing
- given to affected employees within the required notice period.
Some awards allow employers and a majority of affected employees to agree on a shorter notice period for a shutdown direction.
An award may also provide that a business can only close during certain periods, such as the end-of-year period.
Many awards have clauses about annual leave during shutdowns. Each award and agreement is different, so employers should check theirs to make sure before they give employees any directions to use annual leave.
Children’s Services Award guidance
The National Employment Standards (NES) prescribe the annual leave provisions for employees covered by the Children’s Services Award.
In addition to the employee’s annual leave, employers must pay 17.5 per cent leave loading.
For workplaces that close during vacation periods other than Christmas vacation (e.g. pre-schools which operate on a three pre-school term model in line with school terms), if no work is available during the time the workplace is closed, full-time and part time employees must continue to be paid at their ordinary rate of pay.
However, where the workplace closes during the Christmas vacation period, employees may be directed to take annual leave. Where an employee does not have enough annual leave to cover the entire Christmas vacation period, the employer may require them to take a maximum of four weeks of leave without pay.
Shift workers are required to receive the higher of:
- an annual leave loading of 17.5 per cent of their ordinary pay rate; or
- the weekend and shift penalties the employee would have received if they weren’t on leave during that period.
Further, those who work shifts and are rostered regularly to work on Sundays and public holidays receive five weeks of paid annual leave.
For more information, see Direction to take annual leave during a shutdown.
If you’re covered by an agreement, search for it on the Fair Work Commission’s website to see the rules that apply in your workplace.
Employees without enough annual leave to cover a shutdown
If the award or agreement allows it, employees can agree with their employer to take:
- annual leave before they’ve accrued it
- unpaid leave.
Find out more about the Rules for taking annual leave.
Tools and resources
- Notice of requirement to take annual leave
- Notice of requirements to take annual leave for temporary shutdown
- Employing young workers best practice guide
Related information
The original and full advice given by the Fair Work Ombudsman can be found here.
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