Directing Staff To Take Leave Over The Christmas Break

As the Christmas break approaches, many companies find themselves juggling operational needs with a flurry of employee holiday leave requests. It's essential for employers to adhere to the specific regulations outlined in relevant awards to ensure a smooth holiday season.

Direction to Take Annual Leave During Shutdown

Employment awards often contain provisions regarding an employer's authority to manage leave during shutdown periods. Most awards specify the notice required for such closures. For instance, businesses covered by the Plumbing and Fire Sprinklers Award 2020 in Queensland can direct employees to take leave during the holiday season. Employers are permitted to mandate that staff use their paid annual leave during a business closure for Christmas and New Year, as stipulated in Clause 24.4 of the award.

To comply, employers must follow these key steps:

• Written Notice: Employers must provide at least 2 months’ written notice of the temporary shutdown. For employees hired after this notice is issued, notification should be given as soon as possible.
• Direction to Take Leave: Any direction for employees to take leave must be in writing and deemed reasonable. Employees are required to comply and take their paid annual leave during the shutdown.
• Leave Without Pay: If employees lack sufficient accrued leave, they may agree in writing to take unpaid leave for the duration of the shutdown.

Excessive Leave Accruals

Outside of the shutdown period, employers can direct employees with excessive leave balances to take annual leave, but specific guidelines must be followed under the Plumbing and Fire Sprinklers Award. Employers may only issue such directives if the employee's remaining leave balance is at least six weeks, and the directive must require a minimum of one week of leave to be taken. Additionally, employers must provide at least eight weeks' notice for the leave directive, but no more than twelve months' notice. By adhering to these requirements, employers can effectively manage excessive leave accruals while ensuring compliance with award regulations.

Managing Leave Shortages: Negative Leave Balances and Unpaid Leave

If an employee does not have enough accrued annual leave for the entire Christmas shutdown, employers have a few options. One solution is to allow employees to enter a negative leave balance, permitting them to take leave in advance with a mutual written agreement outlining repayment terms. While not obligatory, this arrangement can be beneficial in certain situations.

Alternatively, if taking leave in advance isn’t feasible, employees can opt for unpaid leave during the shutdown. It's crucial for both parties to agree in writing to avoid misunderstandings. Employers should be aware that unpaid leave can impact employee entitlements, including superannuation contributions.

When an Employee Falls Ill During a Period of Annual Leave

Clear policies on reporting illness during annual leave are vital. Employers should specify how employees should notify them of illness and the documentation required to convert their leave type. If an employee falls ill while on annual leave, they may be entitled to convert that leave to personal (sick) leave for the duration of their illness, preserving their annual leave balance. Employees may be asked to provide supporting documentation, such as a medical certificate, to validate their claim.

Best Practices for Managing Christmas Leave

To ensure operations run smoothly during the holiday season, consider these best practices:

• Early Communication: Providing staff with ample notice about the Christmas shutdown allows them to plan their leave and make necessary arrangements.
• Flexibility: Offering flexible options for taking leave—whether through annual leave, unpaid leave, or taking leave in advance—can enhance employee satisfaction.

By implementing these practices, employers can navigate the complexities of holiday leave requests, ensuring compliance with regulations while fostering a supportive workplace environment. To ensure your business remains compliant and well-prepared for the holiday season, contact the MPAQ Advisory team on 07 3273 0800 or email advice@mpaq.com.au.