Business Shutdowns & Holiday Work: What You Need to Know

The end-of-year holiday season affects businesses differently – some experience their busiest period, while others choose to temporarily close their doors. This guide will help both employers and employees understand their rights and responsibilities during this time.

Quick Guide to Your Basic Rights

For Employers

You can request overtime and holiday work if reasonable
You must follow award/agreement rules for shutdowns
You must maintain correct holiday pay rates
You cannot change rosters to avoid public holiday payments

For Employees

You’re entitled to public holiday pay (even during shutdowns)
You can refuse unreasonable requests to work holidays
Your rights are protected by your award or agreement
You may be entitled to penalty rates for holiday work

Managing Business Shutdowns

Rules for Employers

If Covered by an Award or Agreement

Your direction to staff must be reasonable
Must be provided in writing
Must give proper notice (typically 28 days)
Check your specific award for exact requirements
More information is available here.

If Award/Agreement Free

You can only direct staff to use their leave if the request is reasonable
Best practice is to still provide written notice

Managing Employee Leave

Consider allowing unpaid leave options
Offer advance annual leave where appropriate
Maintain public holiday payments during shutdown
Check award requirements before making decisions

Employee Rights During Shutdowns

Cannot be forced to take leave unless allowed by award/agreement
May agree to take:
- Annual leave in advance
- Unpaid leave
Entitled to public holiday pay during shutdown period
Must receive proper written notice

Working During Holiday Periods

Overtime and Public Holiday Work

Employer Responsibilities

Requests must be reasonable
Consider:
- Business needs
- Employee’s role and responsibilities
- Personal circumstances
- Notice period
- Employment contract terms

Employee Rights

Right to refuse unreasonable requests
Entitled to:
- Penalty rates
- Alternative days off
- Extra annual leave
Entitlements vary by award/agreement

Public Holiday Pay Guidelines

Base pay rate applies for regular hours
Continues during paid annual leave
Excludes regular loadings/penalties
Roster changes cannot be used to avoid payment

Special Considerations

For Young Workers and Students

First-time workers are common in holiday periods
Check minimum working age requirements
Review pay rates and entitlements
Prepare properly for your first day

Best Practice Tips

Plan ahead for busy periods or shutdowns
Check relevant awards or agreements
Provide clear written communication
Keep accurate leave and payroll records
Consider employees’ personal circumstances
Ensure public holiday payments are correctly processed

Remember: Each workplace is different, so always check your specific award or agreement for detailed requirements.

Need Help?

Calculate holiday pay rates using the Fair Work Pay Calculator
Visit the Young Workers and Students section for comprehensive information about starting work
Here’s a best practice guide for employing young workers
See Direction to take annual leave during a shutdown for detailed shutdown guidelines

Prepare properly for your first day

Source: Fair Work Ombudsman
Compiled & Edited by Tailored Accounts

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