As part of the Fair Work Commission’s (FWC) 4-yearly review of modern awards, 78 modern awards will have existing shut down / close down clauses replaced with a new model term (which can be found here in paragraph 82) that comes into effect 1 May 2023.
Effectively, despite the new model clause providing that where an employee has insufficient annual leave to cover the entire shut down period, employers and employers may agree to an employee taking unpaid leave, many employers will now lose the right to direct the employee to take unpaid leave.
It is worth noting that whilst employers and employees may agree to the employee taking annual leave in advance of the entitlement accruing, Acting FWC President Hatcher and Deputy President Asbury, made it clear that employees cannot force employers covered by affected awards to provide annual leave in advance.
For employers with employees covered by the affected awards, we recommend:
If you require any further information or assistance in relation to the new model award clause or the introduction and adoption of relevant employment agreement clauses, contact us today.
Disclaimer: The information contained in this update is intended as a guide only. Professional advice should be sought before applying any of the information to circumstances. While every reasonable care has been taken in the preparation of this update. Law Ensure (ACN 168 990 261) does not accept liability for any errors it may contain.