Annual Leave During Shutdowns

Whilst the festive period may still feel a while away, it is important for clubs to already consider if they intend to shut down operations temporarily during this time and if this is the case and they have permanent employees, whether they want to direct them to use their annual leave. 

If a club wants to require employees to use annual leave during a shutdown period, then any relevant notice requirements will have to be met according to their relevant award or enterprise bargaining agreement (EBA). 

Under the Clubs Award, an employer must give the relevant employees 28 days’ written notice of a temporary shutdown period, or a shorter period where there is agreement and any request must be reasonable. 

If a situation occurred where an employee was hired after notice has been provided, then they will need to be given notice of the requirement ASAP. 

If an employee does not have sufficient leave to cover the period, they can only be made to take unpaid leave if they agree to this in writing. If no such agreement is reached then for the period an employee does not have annual leave to cover, they must be given work to do or be paid as normal.  

Another potential option for an employee who does not have sufficient annual leave to cover a shutdown period however is to look to enter into an agreement with their employer for annual leave in advance. 

Again, looking at the Clubs Award as an example, any agreement for annual leave in advance must be in writing and be mutually agreed to by employer and employee. It must also specifically state: 

  • the amount of leave to be taken in advance and the date on which leave is to commence; and  
  • be signed by the employer and employee and, if the employee is under 18 years of age, by the employee’s parent or guardian. 

A copy of the agreement needs to be maintained. It is also important that an employee is aware that if their employment ends and they have not accrued the annual leave already taken in advance, their employer is allowed to deduct from any money due to them on termination an amount equal to the amount that was paid in advance to which an entitlement has not been accrued.  

Members who are after further information on public holiday entitlements and rules and/or is looking for a template for an agreement to take annual leave in advance can contact Clubs SA. 

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