Navigating the Festive Season: Workplace Rules and Entitlements

The end-of-year holiday season brings a unique set of joys and challenges to the workplace. For employers, it's a time to balance holiday cheer with workforce needs. For employees, understanding holiday entitlements and workplace expectations can make the season smoother. Let’s break down the key aspects to keep both employers and employees on the same page as we approach the festive period.

Planning for Holiday Operations

Businesses vary greatly in their holiday plans. While some may experience a surge in activity, requiring extended hours and extra staffing, others might take this time for a complete or partial shutdown. Clear communication around these plans can ensure everyone knows what to expect.

Requiring Annual Leave During a Shutdown

If your business plans a temporary closure, known as a ‘shutdown,’ it’s essential to understand the conditions around requiring employees to take annual leave during this period. In many cases, awards or agreements allow employers to direct employees to use their annual leave, but the process often involves:

• Providing Reasonable Notice: Most awards specify that employees must receive notice of the shutdown at least four weeks in advance.

• Written Communication: To avoid misunderstandings, notify employees in writing about the shutdown dates and the requirement to take leave.

  
  

It’s important for employers to review specific awards and agreements, as requirements can vary. In cases where the award or agreement does not cover shutdowns, employees may still choose to take annual leave or unpaid leave during the closure with mutual agreement.

For Employees Without Sufficient Leave

Employees who don’t have enough annual leave to cover the shutdown period have several options, depending on the award or agreement. These might include taking annual leave in advance, unpaid leave, or even paid leave in advance if an agreement is reached with the employer.

Working Overtime and on Public Holidays

The holiday season often includes extra demands on many businesses, particularly in retail, hospitality, and customer service. Employers can request employees to work overtime or on public holidays if the request is reasonable and communicated well in advance.

Factors to consider when determining a ‘reasonable’ request include:

• Business needs during the holiday period

• The employee’s role and personal commitments

• Advance notice provided to the employee

• Any existing terms in the employment contract

  
  

Remember that employees retain the right to refuse if they have reasonable grounds, particularly around family commitments or caring responsibilities.

Example: Working on Boxing Day

Imagine a retail manager asked to work on Boxing Day for a post-Christmas sale. If the request aligns with the business’s needs, industry norms, and the manager’s role expectations, it’s likely considered reasonable. Many awards and agreements will also provide employees with additional compensation, such as penalty rates, extra leave, or another day off in lieu for holiday work.

Public Holiday Pay Entitlements

Employees who do not work on a public holiday but would normally be scheduled for that day are entitled to be paid their usual rate for those hours. Importantly, employers cannot alter an employee’s roster to avoid paying public holiday rates.

For employees who choose to work on a public holiday, additional entitlements may include higher pay rates or alternative leave options. For the most accurate pay calculation, employers and employees can use online pay calculators.

Conclusion

Closing over Christmas can be a wonderful way for businesses to allow their employees to enjoy the holiday season, but it comes with specific employer obligations. By giving adequate notice, addressing holiday pay and leave entitlements, managing annual leave requests, implementing temporary closure policies, maintaining open communication, and ensuring health and safety, employers can create a smooth and stress-free Christmas shutdown. This not only supports employee well-being but also fosters a positive work environment that can lead to increased productivity and loyalty when the business reopens in the new year.

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