ARTICLES

New changes to apply from 1 May 2023 will impact the way employers implement temporary shutdowns.

•  Employers will now need to give employees 28 days’ written notice of any temporary shutdown for a particular period, for example, a shutdown over the Christmas/New Year period.
•  Employers will not be permitted to direct/enforce employees to take leave without pay during a temporary shutdown.
•  Businesses covered under the 78 affected awards should review any current leave policies, employment contracts and procedures that cover temporary shutdowns. *A list of affected awards is provided at the end of this alert.

What is changing?

The Fair Work Commission has varied 78 modern awards relating to an employer’s ability to direct employees to take a period of annual leave when an employer shuts down all or part of its business.

The changes are:

•  Employers must provide at least 28 days’ written notice of the temporary shutdown period (or a longer period if the term preserves an ex...