As the festive season gets closer, many businesses start planning a Christmas closedown. For most employers, this means asking employees to take annual leave. The rules aren’t the same for everyone, so it’s important to understand what you can and can’t do before making decisions.
Employees covered by an award or enterprise agreement
Whether you can direct someone to take annual leave depends on the specific Award or Enterprise Agreement (EA).
Here’s what you need to know:
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You can only direct annual leave if the Award or EA allows it.
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Most Awards permit it, usually requiring at least 28 days’ written notice.
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Some Awards have different rules.
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Building and Construction General On-site Award 2020 requires 2 months’ notice.
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Some Awards have no closedown provisions at all, such as the Social, Community, Home Care and Disability Services Industry Award 2010.
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If the Award or EA doesn’t include closedown provisions, annual leave must be agreed.
Give at least 28 days’ written notice
Award-free employees
For employees who aren’t covered by an Award or EA, employers can generally require annual leave during a closedown if it’s reasonable.
Giving plenty of notice is best practice. It helps maintain trust, fairness and operational certainty.
When employees don’t have enough leave
A common challenge at this time of year is insufficient leave balances. In these cases:
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Employers cannot require an employee to take unpaid leave.
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Unpaid leave must always be agreed.
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You can agree to annual leave in advance, but check the relevant Award or EA for any conditions.
Key takeaways
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Check the relevant Award or EA before issuing any directions.
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Communicate early so employees have time to plan.
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If someone doesn’t have enough leave, make sure any alternative arrangement is agreed in writing.
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Keep records of all notices and agreements as part of your compliance process.
A note for WA employers
This guidance applies to employers covered by the national workplace relations system (Fair Work).
For WA employers operating under the state industrial relations system, the rules differ.
Always check WA-specific requirements before making any decisions.
If you’re planning a closedown and want clarity on your obligations, Capital Hr is here to help you prepare, communicate and stay compliant.
