End-of-Year HR Checklist: Shutdowns, Leave & Team Tips

The end of year is in sight. Before you start dreaming of beach days and Christmas pavlova, there are a few things to get sorted, especially when it comes to communicating shutdowns, and locking in your workplace plans over the festive season.

Give notice early for EOY closures

If you haven’t already, now is the time to lock in the dates your office/ shop/ factory/ lemonade stand is closed. Many businesses start winding down from around 19 December, which is just over two months away!

Most Modern Awards and some employment contracts require at least four weeks’ notice of a workplace shutdown (some even require up to two months). So if you haven’t already, get those dates out to your team ASAP.

Your notification should include:

• The exact dates your workplace will be closed.
• What people should do if they don’t have enough annual leave to cover the closure period. (Keep scrolling, we cover this further down in our leave FAQs)

If your workplace is staying open

Make sure everyone has their leave requests in and you’re able to manage workloads across this period with available team members. Keep in mind, this is also peak leave-request season!

If you’re operating with a skeleton crew, make sure you can still meet your WHS obligations with fewer hands-on deck.

If this is peak season for your business and you need to bring on extra casuals, make sure you’re well on your way to getting people locked in and their availability confirmed.

Shutdowns & Leave FAQs

Before we dive into the FAQs, a quick reminder: If your business is covered by a Modern Award or if specific terms are outlined in your employment contracts, make sure you're guided by those in the first instance. They often contain important details that affect how things like shutdown or leave can be managed.

1. Can you make your team take leave during a shutdown?

Yes, in most cases you can require your team to take annual leave during a temporary shutdown (like over the Christmas/New Year period), but there are a few rules to follow.

Make sure you give plenty of notice in writing. As we mentioned, most Modern Awards require at least four weeks’ notice, but some might need more, so it’s worth double-checking.

2. What are your options if some employees don’t have enough leave to cover the shutdown period?

It’s a good idea to have a conversation with affected employees early, so they’re not caught off guard.

If team members don’t have enough annual leave to cover the closure period:

• First be guided by what the relevant Award says about leave during shutdowns.
• Consider offering employees the option of taking leave in advance, even if it results in a negative leave balance, or alternatively, agree for them to take leave without pay during this period.
• Think about what approach will best balance employee morale and works for your business over the break.

3. How long can a shutdown be?

Although there is no set limit for a shutdown period in the Fair Work Act, it is important to ensure it’s a reasonable and fair timeframe.

Shutdowns are generally between one and three weeks, but what’s considered reasonable depends on a few different circumstances and your specific situation.

If the break is for a longer period, it’s more likely some employees won’t have enough leave to cover it, so you’ll need to agree on other options we mentioned above.

The answer here can vary depending on the business, so if you're unsure and need support, get in touch. Our HR partners can talk through your options and offer tailored advice.

4. Do casual employees get paid during shutdown periods?

No. Casuals don’t accrue annual leave and are not paid when the business temporarily closes (such as over Christmas and New Year).

5. Can you decline a leave request?

Yes, but an employer can only decline a request for annual leave on "reasonable business grounds" and you must provide this reason in writing.

Examples of reasonable business grounds might include:

• Operational needs - such as peak periods or set staffing requirements.
• Leave clashes - when other employees are on leave during the same period, and approving leave would result in being short-staffed.

Keep in mind:  

• Be fair and consistent, especially if you’re juggling multiple requests across the team
• If you're declining someone's leave request:
  
  • Communicate early so non one’s disappointed last-minute.
  • See if you can find a compromise or offer alternative dates.
  • Consider offering for them to submit their Christmas leave preferences early for the following year.

5.Can you ask employees to take extra leave outside a specific shutdown?  

Whether you’re shutting down for a few weeks, or staying open, you might also experience some quieter months over December to January.

You can offer or  suggest  to your team that this is a great time to take extra leave (especially if they’ve got a healthy leave balance). Some team members may welcome the break, while others may prefer to work through.

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We’re here to help

Reach out to our team for any specific advice on managing end-of-year closures, or communicating your workplace plans with your team. We'd love to talk through how we might be able to support you and your business.
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