Mastering the art of a smooth shutdown: a step-by-step guide 

On 1 May 2023, rules around directing and taking annual leave during a shutdown period under the Health Professionals and Support Services Award 2020 and the Nurses Award 2020 were updated. 

Previous versions of the awards did not specify the amount of notice employers were required to provide employees, nor did it outline how the direction to take annual leave should be communicated by employers. However, now that the Awards have been updated, planning ahead and communicating with employees in a timely and transparent manner is key to managing a successful stress-free shutdown period. 

When communicating in writing about the shutdown period, the communication should provide notice (as per the summary below) to the employees of the duration and any requirements related to leave or other entitlements. You should also consult with employees to ensure any concerns or questions are addressed and the shutdown is managed fairly and in accordance with employment laws.

Steps to, directing and requesting employees to take annual leave during a shutdown period should include the following:

1. Employers may request employees to take paid annual leave during a temporary shutdown
2. Employers must provide at least 28 days’ written notice of the temporary shutdown period to all impacted employees 
3. The requirement to take annual leave must be reasonable 
4. Notice periods can be reduced if the majority of affected employees and their employer agree
5. If an employee doesn’t have enough annual leave to cover all of the shutdown, the employee and employer can agree to alternative options for days not covered. This may include:
   1. using other paid time off such as time off in lieu
   2. annual leave in advance, or 
   3. taking leave without pay. 

Should public holidays occur during a shutdown period, employees will be paid for the public holidays during this period which fall on days they would normally work. 

All employees will continue to accumulate annual leave during a shutdown period, unless they’re taking leave without pay. 

Shutdown provisions in Modern Awards
Health Professionals and Support Services Award – Clause 27.5 Direction to take annual leave during shutdown
Nurses Award – Clause 22.7 Direction to take annual leave during shutdown