As the festive season approaches, many businesses consider shutting down for a Christmas closure period. While this can be a great opportunity for employees to recharge and spend time with loved ones, it’s essential for employers to understand their obligations under the Fair Work Act 2009 (Cth) and applicable Modern Awards. Here, we will explain the key considerations and legal requirements to ensure your Christmas shutdown period runs smoothly and compliantly.

What Are Christmas Closure Provisions?

Christmas closures typically refer to a period during the holiday season when a business temporarily shuts down operations. This is often referred to as a “stand down” or “annual shutdown” in employment contexts. During this time, employees may be required to take annual leave, unpaid leave, or alternative leave options depending on the specific provisions outlined in their award, enterprise agreement, or employment contract.

Key Provisions of the Fair Work Act

The Fair Work Act 2009 sets the overarching framework for managing employment relationships, including rules about stand downs and leave entitlements. However, it does not specifically outline provisions for Christmas closures. Instead, these provisions are typically found in Modern Awards, enterprise agreements, or individual employment contracts.

Under the Fair Work Act:

• Employers cannot compel employees to take annual leave unless permitted by a Modern Award, enterprise agreement, or contract.
• Employers must give reasonable notice of a required leave period (where this is permitted by the relevant agreement or award).

https://www.fairwork.gov.au/newsroom/news/rules-and-entitlements-during-end-year-holiday-season

Modern Awards and Christmas Closures

Many Modern Awards include specific provisions allowing employers to direct employees to take annual leave during a business shutdown. Here are some common elements to look for:

1. Notice Requirements
   Employers must provide advance notice of the closure. The notice period varies depending on the specific award but is commonly 4 to 6 weeks. For example:
   • The Clerks—Private Sector Award requires at least 4 weeks’ written notice for a shutdown period.
2. Leave Options
   If an employee does not have enough accrued annual leave to cover the shutdown period, the employer may:
   • Allow the employee to take unpaid leave.
   • Agree to let the employee take annual leave in advance.
   • Direct the employee to take another form of leave, such as long service leave, where applicable.
3. Exclusions and Exceptions
   Some awards or enterprise agreements may exclude certain employees from mandatory leave requirements during shutdowns. Always check the specific provisions of the award or agreement that applies to your workforce.

Common FAQs About Christmas Closures

1. Can an employee refuse to take leave during a shutdown?
   Generally, if the relevant award or agreement allows employers to direct employees to take annual leave during a shutdown, employees cannot refuse unless the direction is deemed unreasonable.
2. What happens if an employee has insufficient annual leave accrued?
   In this case, options such as unpaid leave or annual leave in advance may apply. Employers must clearly communicate and agree on the approach with the employee.
3. Are casual employees affected by Christmas closures?
   Casual employees typically are not entitled to paid leave and therefore may simply not be rostered during the closure period. However, this does not constitute a termination of employment.

Best Practices for Managing a Christmas Closure

To ensure compliance and maintain good workplace relations, employers should follow these steps:

1. Check the Relevant Modern Award or Enterprise Agreement
   Review the provisions that apply to your employees to understand your rights and obligations.
2. Communicate Early and Clearly
   Provide employees with written notice well in advance of the closure, outlining:
   • The dates of the shutdown.
   • How leave will be handled.
   • The options available to employees with insufficient leave balances.
3. Document Agreements
   If employees agree to take annual leave in advance or unpaid leave, ensure these agreements are documented in writing.
4. Consult Where Necessary
   If the provisions in an award or agreement are unclear, consider seeking advice from an HR professional or employment lawyer.

Recruitment in December and January: Pros, Cons, and Key Strategies for Australian Businesses

Recruiting during December and January in Australia presents unique opportunities and challenges for businesses. These months, spanning the holiday season and the start of a new year, offer distinct advantages and disadvantages that vary depending on industry needs and hiring strategies. Here’s a combined look at the pros and cons of recruiting during this period.

Advantages

Access to Passive and Motivated Job Seekers

December sees many individuals reflecting on their careers and becoming open to new opportunities, whilst the end of January brings a surge of motivated job seekers driven by New Year’s resolutions.

Less Competition in December

Many businesses hold off on hiring during December, giving proactive recruiters a chance to secure top talent with less competition.

Fresh Candidate Pool in January

The second half of January typically brings a fresh wave of applicants, as people actively seek new roles at the start of the year.

Immediate Availability

Some candidates finish up roles at the end of the calendar year, making them available to start immediately, which can be especially useful for roles that need filling quickly.

Strategic Timing

Recruiting during these months ensures new hires are ready for the start of the calendar year or upcoming projects, helping businesses hit the ground running.

Holiday Networking Opportunities

Festive season events and industry gatherings provide informal opportunities to connect with potential candidates.

New Budgets and Hiring Plans

Some businesses start new budget cycles in January, enabling clear recruitment planning and the creation of new roles.

Disadvantages

Candidate and Staff Availability

December and January sees many candidates and internal staff on annual leave, making it harder to schedule interviews, manage applications, or onboard new hires.

Holiday Distractions

The festive season and summer holidays can divert candidates’ attention, leading to slower application responses or delayed decision-making.

Increased Competition in January

The second half of January is a peak recruitment month, meaning businesses face stiff competition for top talent, with candidates often juggling multiple offers.

Higher Candidate Expectations

January job seekers may have ambitious salary and role expectations, requiring businesses to adjust recruitment budgets or offer attractive packages.

Limited Onboarding in December

Starting new hires in December can result in a disjointed onboarding process due to office closures or reduced staff availability.

Delayed Start Dates

Candidates recruited in January may require additional time to start new roles, whether due to prior commitments, notice periods, or extended holiday plans.

Key Considerations

• Industry-Specific Needs: Industries like retail, tourism, and hospitality may benefit from hiring in December to manage seasonal demand, while others may focus on January to align with new budgets or strategic goals.
• Communication and Planning: Clearly outline timelines for applications, interviews, and start dates to manage expectations during the holiday season.
• Flexible Recruitment Processes: Adapt your strategies to accommodate slower activity in December and the heightened competition of January.

Conclusion

Recruiting in December and January offers a mix of advantages and challenges. While December provides opportunities to stand out with less competition, it also comes with logistical hurdles. January brings a larger, motivated candidate pool but increased competition. By understanding the dynamics of each month and tailoring your recruitment strategy accordingly, businesses can effectively navigate this unique period and secure the best talent for their needs.

A Christmas Party NOT to Remember!

Work Christmas parties are a staple of the Australian corporate calendar—an opportunity to celebrate achievements, foster camaraderie, and enjoy a well-earned break from the grind. But sometimes, when the drinks flow and inhibitions fade, these gatherings can take a turn for the chaotic.

The “Christmas Chaos” Case Study

The Scene:
An Australian marketing agency throws its annual Christmas bash at a swanky rooftop bar in Sydney. With an open bar, a DJ blasting 80s classics, and a karaoke machine in full swing, the atmosphere is festive, if not a little rowdy.

The Incident:
Let’s introduce our key players:

• Greg from Sales, who arrived in a Santa suit and had one too many margaritas.
• Karen from Accounts, known for her love of karaoke and fiery debate skills after a glass of red.
• The HR Manager, tasked with making sure the party remained “on brand.”

The night took a turn when Greg decided to belt out “Livin’ on a Prayer” while standing on a table. Karen, unimpressed with his performance, heckled him loudly, sparking a heated exchange that culminated in Greg declaring himself “the real boss of this company” and accidentally toppling a Christmas tree while gesturing emphatically.

Later, fuelled by liquid courage, Greg sent a company-wide email from his phone, declaring his undying love for his manager (who was mortified) and suggesting radical changes to the office snack policy.

The HR Manager’s night ended with her playing mediator between Greg, Karen, and several other staff members who had opinions on everything from the karaoke song queue to office seating arrangements.

The Aftermath:
The following Monday, the HR Manager issued a sternly worded memo reminding staff of the company’s code of conduct. Greg was asked to take a few days of unpaid leave and attend a workshop on appropriate workplace behaviour. Karen received a warning for her part in escalating the situation. The company also cancelled open bars for future events, opting instead for drink tickets.

Lessons Learned: How to Avoid a Christmas Party Disaster

1. Set Clear Expectations in Advance
   • Before the party, communicate the company’s expectations regarding behaviour. A friendly reminder about the workplace code of conduct and appropriate behaviour can set the tone without dampening the mood.
2. Limit Alcohol Consumption
   • An open bar is often a recipe for chaos. Instead, consider a drink ticket system to encourage responsible drinking and avoid Greg-level catastrophes.
3. Choose Activities Wisely
   • While karaoke can be fun, it can also spark unexpected rivalries. Opt for team-building activities or entertainment that doesn’t encourage competitive or divisive behaviour.
4. Designate Party Moderators
   • Assign managers or HR representatives to discreetly oversee the event and intervene if things start to get out of hand.
5. Encourage Responsible Use of Technology
   • Remind employees that work emails, group chats, and social media posts during the party are still considered workplace behaviour. Greg’s infamous email could have been avoided with a quick “think before you send” reminder.
6. Provide Transport Options
   • Ensure everyone gets home safely by organising taxis, ride-shares, or buses. This reduces the chances of incidents after the party and demonstrates your commitment to employee wellbeing.
7. Follow Up Promptly
   • If an issue does occur, address it professionally and promptly. Avoid singling anyone out publicly but ensure those involved understand the consequences of their actions.

Final Thoughts

While this case study may bring a smile, it underscores the importance of planning work Christmas parties carefully. Striking a balance between fun and professionalism ensures everyone has a good time without HR needing to step in for damage control.

After all, the goal is to end the year on a high note—not tangled in tinsel and disciplinary action!

Human Resources Hub Updates

We have updated our last batch of documents for 2024 which will be available for our retained clients to view in the HR Hub from December.

The end of year focus has been on our HR guides, with 16 updated inline with new legislation and best practice. These include:

• Casual Conversion eBook
• Parental Leave Guide
• Personal, Carers and Compassionate Leave
• Sexual Harassment
• Remote Working Toolkit for Employers
• Fixed Term Contract Compliance Guide

Liquid HR is a leading HR consulting firm helping businesses of all sizes to navigate the complexities of human resource management, while providing tailored HR services based on their unique requirements, including HR Outsourcing, Recruitment and HR Advisory Services.

With offices in Melbourne, Sydney and Brisbane, we work with businesses across Australia.

For more information, please contact us on 1300 887 458 and speak with one of our HR Consultants.