We’re about 14 weeks out from Christmas. I know that feels like a lifetime when you’re flat out finishing jobs and chasing invoices, but if your business shuts down over the Christmas/New Year period, now is exactly the right time to start planning for it.
A bit of planning now means you can give your team the written notice their Award requires, and it means everyone heads into the break knowing exactly where they stand.
Decide the dates for your shutdown and tell people early
The first step is simple. Decide the exact dates your business will be closed, then let everyone know. That’s your team, and it’s your clients and suppliers too.
The sooner your dates are locked in, the sooner your team can plan their own Christmas around them.
Give your team proper written notice
If your business closes over the Christmas and New Year period, you need to give your employees written notice of the shutdown in line with their Award. You need to do this even if it’s already in their employment contract, because you have to tell your team the actual dates each year.
Different Awards set out how much notice you have to give and how leave is handled during a shutdown, so it’s worth checking the one that covers your team. Most Awards let you direct employees to take their annual leave over the break, but not unpaid leave, and the rules around that have changed in recent years.
It’s an easy one to miss when you’re busy, so put it on the list now.
And if you take someone on after you’ve already told the team about the shutdown, you need to let that new person know as soon as you reasonably can. The recruitment stage or their induction is a great time to mention it, so there are no surprises when December comes around.
Check everyone has enough leave
This is the part worth doing early. Have a look at whether your team actually has enough annual leave to cover the shutdown.
If someone’s a bit short, you’ve got options, and the kind thing is to sort it out now rather than springing it on them. You might agree in writing to a period of unpaid leave, or you might let them take some annual leave in advance. Just remember you can’t force someone to take unpaid leave, so a written agreement you’ve both talked through is important.
If you do let someone take leave in advance and it puts them into a negative balance, get that in writing too, noting that they’ll repay the value if they leave before they’ve accrued it. It protects both of you, and it means nobody’s caught out later.
Honestly, the simplest habit is to keep an eye on leave balances all year, whenever someone applies for leave. Then you’re not doing it all at the last minute.
Don’t forget the public holidays
Your team are entitled to be paid for any public holidays that fall during the shutdown on days they’d normally work. This still applies even if they’ve agreed to take unpaid leave over the break. It’s easy to overlook, so factor it into your planning and your pay runs.
Why it’s worth getting ahead of
A little planning now does a few good things.
It keeps the wind-down calm. When everyone knows the dates and their leave is sorted, you’re not fielding questions on the last day before you close. It’s fair on your team, because they can plan their own Christmas, book their trips, and actually switch off. And it keeps you compliant with your obligations under the National Employment Standards and your Award, without any of the stress.
A quick refresher on the leave side of things. Under the National Employment Standards, full-time employees get four weeks of paid annual leave a year, and part-timers get four weeks pro-rata based on their hours. Some Awards and agreements also include annual leave loading, so it’s worth checking what applies to your team.
Final thoughts
Remember what the break is for. Your team have worked hard all year, and so have you. A well-planned shutdown means everyone gets a proper rest and comes back in January ready to go.
To make the written notice part easy, I’ve put together a free template shutdown notice letter you can use. It has the wording you need to tell your team the dates in writing, so you can get it done in a few minutes and tick it off the list. You can grab it here: https://booking.myhrpartner.com.au/christmas-party-template-464228
Get the planning done now, and future-you in December will be very grateful.
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