Notice of requirement to take annual leave for purpose of shut down – construction industry

Some modern awards in the construction industry allow you to require your employees to take annual leave during a shut down over the Christmas and New Year period. This template has been created to help employers covered by the following awards:
·  Building and Construction General On-site Award 2010 [MA000020]
·  Electrical, Electronic and Communications Contracting Award 2010 [MA000025]
·  Joinery and Building Trades Award 2010 [MA000029]
·  Plumbing and Fire Sprinklers Award 2010 [MA000036]
Each award has unique conditions about how shut down periods operate, including the amount of notice you need to give your employees. Check your modern award carefully before using this letter.

Steps for preparing a letter of notice of requirement to take annual leave for purpose of shut down

If you need more information or assistance, call the Fair Work Infoline on 13 13 94 or visit www.fairwork.gov.au.

Step 1: Check your modern award

Every award has its own unique conditions. Check your modern award carefully for details about shut down provisions, and any special requirements or conditions you have to fulfill.

Visit www.fairwork.gov.au/awards if you’re not sure which modern award applies.

Step 2: Talk to the employees

You should meet with your employees to tell them about the shut down period and give them the opportunity to ask questions. You should make sure that the employees understand:

·  the reason for the shut down (e.g. Christmas holidays)

·  the length of the shut down

·  that they will be paid annual leave during the shut down

·  that this annual leave will not remove or replace their entitlement to public holidays

·  that this annual leave will be deducted from their accrued entitlements.

You should also explain what will happen if they don’t have enough leave.

Step 3: Create your letter

You have to give your employees at least 2 months’ written notice of the requirement to take annual leave during a shut down period.

This notice should include the dates the shut down period will start and finish, and the reason for the shut down.

This template has been colour coded to assist you to complete it accurately. You simply need to replace the red < > writing with what applies to your employee and situation. Explanatory information is shown in blue italics to assist you and should be deleted once you have finished the letter.

Step 4: Provide the letter to the employee and keep a copy for your records

Give the letter to the employee at least 2 months before the start of the shut down period. You should also keep a copy of the letter for your records.

Print on your business letterhead

Date

Private and confidential

Insert employee’s full name
Insert employee’s residential address

Dear insert name

Notice of requirement to take annual leave for purpose of shut down

In accordance with clause <insert relevant clause number> of the <insert modern award title> (the Award), I am writing to tell you that <insert the business/company name> requires you to take annual leave because the business is shutting down from <insert commencement date> to <insert end date>, due to the Christmas-New Year period. This period of leave will be deducted from your accumulated entitlement.

You must provide employees with 2 months’ notice of a requirement to take annual leave due to a shut down. Make sure you provide this letter to your employees at least 2 months before the shut down commences.

<Insert the business/company name> is required to give you at least 2 months’ notice of a requirement to take annual leave under clause <insert relevant clause number of the applicable modern award> of the above Award. Please consider this letter as your 2 months’ notice starting on the date of this letter <date of the letter provided to the employee>.

The appropriate rate of pay for your ordinary hours of work will be paid to you throughout the leave period if you have enough annual leave to cover the period. You might also be entitled to annual leave loading.

Check your award to find out if you need to pay annual leave loading or other penalty rates during the period of annual leave.

If you do not have enough annual leave to cover the shut down period, the leave will be unpaid (excluding public holidays).

If you have any questions about this letter, please contact me on <insert phone number>.

Yours sincerely,

<Insert name>

<Insert position>