Temporary Shut Down Period:
Understanding Your Obligations as an Employer
What is a Temporary Shut Down Period in Australian employment law?
A temporary shut down period is a period of time during which an employer temporarily shuts down their business operations or a part of their operations due to factors such as slow business or maintenance work. During this period, employees may not be required to attend work and may not be paid, or they may be required to use their annual leave or other paid leave entitlements to cover the period of the shut down.
Are employers in Australia allowed to shut down their business temporarily?
Yes, employers in Australia are allowed to shut down their business temporarily, as long as they comply with relevant employment laws and regulations. Employers must provide employees with notice of the shut down period and follow the applicable provisions under the Fair Work Act and any applicable modern awards or enterprise agreements.
Can employers require employees to take annual leave during a Temporary Shut Down Period?
Yes, employers can require employees to take annual leave or other paid leave entitlements during a temporary shut down period. This is because employees are not considered to be on stand down during this period, but rather taking paid leave in accordance with the employer’s instructions. However, employers must comply with the relevant provisions under the Fair Work Act and any applicable modern awards or enterprise agreements when requiring employees to take leave.
Can employees be made redundant during a Temporary Shut Down Period?
Yes, employees can be made redundant during a temporary shut down period if the employer can demonstrate that the redundancy is genuine and meets the requirements under the Fair Work Act. However, employers must still comply with their obligations under any applicable modern awards or enterprise agreements, including providing notice and redundancy pay to affected employees.
How can employers manage a Temporary Shut Down Period effectively?
Employers can manage a temporary shut down period effectively by planning ahead and communicating with employees in a timely and transparent manner. Employers should provide notice to employees of the shut down period, including the expected duration, and any requirements related to leave or other entitlements. Employers should also consult with employees and their representatives, if applicable, to ensure that any concerns or questions are addressed, and that the shut down period is managed fairly and in accordance with employment laws.
What If The Employee Does Not Have Enough Annual Leave Accrued At The Time Of The Shut Down?
An employer can request and an employee can agree to take annual leave in advance or the employee can take unpaid leave during the shut down period.
About Employment Innovations
Employment Innovations is one of Australia’s leading providers of employment services designed to increase productivity and ensure compliance. Its services and solutions include all the tools that every Australian small to medium sized employer needs – including workplace advice, legal services, payroll solutions, migration, human resource management and HR software.
The information provided in these blog articles is general in nature and is not intended to substitute for professional advice. If you are unsure about how this information applies to your specific situation we recommend you contact Employment Innovations for advice.
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