Annual Shutdowns Made Simple – What You Need to Know

Planning to close up shop over the holidays? Good on you – it’s a great time for everyone to reset. 

But here’s the thing: annual shutdowns come with rules, and if you’re not across them, you could end up with a compliance headache (or worse). 

Don’t stress – we’ve got your back with this quick, practical guide to nailing it.

1. Written Notice – Don’t Skip This Step

You can’t just decide to shut the doors and hope everyone’s on board. Legally, you need to give at least 14 days’ written notice of your annual shutdown. Make sure your notice spells out the start and end dates of the closedown.

Not sure where to start? 

We’ve got a very simple free template letter to make it easy – grab it below!

2. What Happens to Employee Leave?

Let’s break this down:

• They’ve Got Enough Leave:
  Employees who’ve built up their annual leave must use it during the shutdown. Their leave is paid at the higher of their ordinary weekly pay or average weekly earnings.

• They Don’t Have Enough Leave:
  • If someone’s used up all their leave, they can either take unpaid leave or agree to take annual leave in advance.
  • Haven’t been with you a full 12 months? No worries – they’re entitled to a payment of 8% of their gross earnings, minus anything already paid or taken.

It’s all about fairness – no surprises, just clear communication and agreed options.

3. Make Sure Your Team’s Clear on Their Rights

Your team needs to know where they stand:

• Using up accrued leave during the shutdown is a given.
• If leave’s not available, it’s up to you and the employee to agree on unpaid leave or leave in advance.
• For those with less than 12 months’ service, the 8% gross earnings rule ensures they’re covered fairly.

Clear, upfront communication avoids confusion and keeps everyone on the same page.

4. Plan It, Communicate It, Relax

An annual shutdown should be simple, not stressful. Start early, give clear notice, and make sure everyone understands their options. 

Got the basics covered? 

You can kick back and enjoy the break knowing you’ve done it right.

Need a hand? 

Download our free shutdown notice template  to keep things professional and hassle-free.

Make Shutdowns Easy

Whether it’s your first shutdown or your fifteenth, sticking to the rules keeps things smooth and drama-free. 

With the right tools and clear communication, you can focus on what really matters – the time off!

Stay tuned to Onsite Insight for more simple, down-to-earth tools to help your business run like a dream.