As the festive season approaches, many construction businesses remain busy completing end-of-year projects, while others — particularly in the residential sector — begin winding down. For many, this period marks the annual close down or shutdown, when a company temporarily ceases operations over Christmas and New Year.
During a shutdown, employees are generally not required to work and may be asked to take annual leave. Employers who wish to direct staff to take leave during this period must do so in accordance with the National Employment Standards (NES) or any applicable industrial instrument, such as a modern award or enterprise agreement. These instruments set out how and when employees can be directed to take annual leave, and employers must follow those provisions carefully.
Under the NES, an employer and an award or agreement free employee can agree on when and how paid annual leave is taken, provided the arrangement is reasonable. This may include agreements about:
It’s important to note that these entitlements do not automatically apply to casual employees.
In most cases, a direction to take annual leave during a shutdown must be in writing and provided to employees within a reasonable notice period, or as otherwise specified in the relevant award or agreement. Employers should check these provisions ahead of time to ensure compliance and allow employees to plan their holidays.
This is also a good time to check that payroll systems are recording annual leave and other entitlements accurately.
Before closing off projects for the year, make sure your sites are safe and secure — including equipment lock-up, signage, and hazard control. Be mindful of fatigue and rushing in the lead-up to shutdown; this period is statistically one of the higher-risk times for site incidents. Protect your site, your workers, and yourself.
Consider scheduling a safety briefing or “end-of-year toolbox talk” before wrapping things up. Set up out-of-office messages, supplier notices, and emergency contacts for the shutdown period, and communicate shutdown details clearly to clients, subcontractors, and delivery partners to avoid confusion about access or deliveries over the break.
For assistance or further guidance, contact our Workplace Relations Team on (02) 6175 5900 or workplace@mba.org.au.
