As the year draws to a close, many members may be looking to shut down their business over the Christmas period to allow for a well-deserved break. In order to do this, there are requirements under the Vehicle Repair Services and Retail Award 2020 which outlines the consultation requirements and how the shutdown will impact on the employees leave entitlements.
Under the Award, employers can require employees to take a period of paid annual leave during a temporary shutdown for the purpose of allowing all or the majority of employees to take annual leave.
All affected employees must be given at least 28 days’ written notice of the shutdown period (notice periods may be reduced if agreed to by both the majority of affected employees and their employer).
If an employee does not have enough accrued annual leave to cover all of the temporary shutdown period, employers may need to pay them ordinary wages for the time not covered unless there is a genuine agreement for the employee to take unpaid leave. This agreement must have the genuine consent of the employee and must be in writing. Because of this, we encourage members to review annual leave accruals throughout the year to ensure employees have enough leave to cover them for the closure period.
The employee can also agree to take annual leave in advance or other paid time such as time off in lieu. Where an employee has agreed to take unpaid leave during a shutdown, they may be entitled to payment for the public holidays that fall during that time.
This will depend on:
- If the employee has ordinary hours of work on those public holidays
- Any award or agreement provisions that apply
- The circumstances of the unpaid leave
- Any agreement between employer and employee to be paid for public holidays.
If an employee is hired after their initial notice of the shutdown, the employer must give that employee notice as soon as reasonably possible.
An employee will continue to accumulate annual leave during a shutdown period, unless they are taking leave without pay.
If you would like any additional information or documentation to assist with this process, please reach out to the Workplace Relations department by emailing wr@mtasant.com.au or by phoning (08) 8291 2000.
