Christmas and the end-of-year period are fast approaching, and it’s time for businesses to start planning how operations will run over the holiday season. For agribusinesses and production companies, it’s a delicate balance between keeping the business moving and respecting employee welfare.

Will your business get busier, requiring staff to work extra hours or on public holidays? Or will you close down entirely or operate with a skeleton crew?

Planning ahead ensures you stay compliant and your team stays happy.

Required Annual Leave During a Shutdown

If your business is planning a shutdown, you may be able to direct employees to take annual leave—but this depends on the award or any registered agreement that covers your staff.

In recent years, many awards have included model clauses providing greater flexibility for temporary shutdowns. Here’s what you need to know in 2025:

• Provide at least 28 days’ written notice of the shutdown period to your team. Time flies in agriculture, so plan early!
• Ensure employees have enough annual leave to cover the shutdown. This keeps operations smooth and your workforce happy.
• Make your direction reasonable and considerate. Balance operational needs with staff welfare.

Every award and agreement is different, so it’s essential to check the rules before directing staff to take annual leave. For employees employed award-free, directions to take leave must always be reasonable.

What Makes a Shutdown “Reasonable”?

Reasonableness isn’t one-size-fits-all. Under the National Employment Standards (NES), all directives for annual leave must be reasonable, regardless of award coverage.

When deciding if a shutdown is reasonable, consider:

• Business needs
• Existing agreements with your team
• Industry standards
• Impact on employees’ personal commitments
• Notice provided to staff

Reasonable planning helps avoid disputes and keeps your workforce engaged and prepared for the holiday period.

Employees Without Enough Annual Leave to Cover a Shutdown

Not all staff will have enough accrued leave for a festive shutdown, especially new hires or seasonal workers.

Here are some practical strategies to navigate this possibility:

• Negotiate unpaid leave agreements
• Allow staff to take leave in advance if permitted by the award
• Maintain pay for essential employees who continue working
• Use overtime or accrued rostered days off as compensation
• Always obtain employee consent where required. Open communication is key to finding solutions that suit both staff and business.
  

Awards and Agreements Without Shutdown Rules

If your employees’ awards or agreements don’t include shutdown provisions, you can't force annual leave.

However, you can negotiate agreements with staff to take annual leave or unpaid leave during the festive period. Flexibility and early discussions make these arrangements far smoother.

Working Through a Shutdown or Public Holiday

Employees who continue to work during a shutdown are entitled to normal pay. If a public holiday falls during the shutdown:

• Staff should be given the day off without loss of pay, or
• Paid at public holiday rates if they work

Employers can request staff to work overtime or on public holidays, but requests must be reasonable. Employees can refuse if they have valid grounds. Factors to consider include:

• Business needs
• Employee role and responsibilities
• Personal commitments (family, caring duties)
• Notice given
• Employment contract terms

Employees who work overtime or public holidays may also be entitled to:

• Penalty rates
• A substitute day off
• Additional annual leave
  

Communication is Key

Clear, written communication avoids confusion and ensures staff understand their obligations and entitlements. To help with your communication, we've put together a template letter to advise your employees of a holiday shut down.

Plan Ahead for a Smooth Festive Season

Whether you’re closing down, operating at full capacity, or somewhere in between, early planning is essential. Check awards and agreements, confirm public holiday pay, and communicate clearly with your team.

With thoughtful planning, your business can finish the year strong, and your staff can enjoy a well-earned break.

For more questions about business operations through the festive season, check out the Fair Work Australia resources.