Is Your Business Ready for the Christmas Shutdown?

What You Need to Know (and How AHR Can Help You Get It Right)

As the end of the year approaches, many small and medium businesses plan to close for a well-earned Christmas break. But before you switch off the lights and head to the beach, it’s important to make sure you’re handling your Christmas shutdown the right way —and in line with Fair Work rules. 

The Fair Work Ombudsman has clear guidance on what employers can and can’t do during a shutdown period. Getting it wrong could mean underpayments, compliance breaches, or frustrated workers. Getting it right means peace of mind, less admin stress, and a smooth start to the new year. 

Here is what you need to know—and what you also need to know—and how Assurance HR Management (AHR) can take the pressure off your shoulders this Christmas. 

What the Fair Work Ombudsman Says

Under Fair Work rules, a shutdown is when a business temporarily closes, such as over Christmas and New Year. 

If your workers are covered by a modern award or registered agreement that includes shutdown provisions, you can direct them to take paid annual leave—but there are specific requirements you must follow. 

According to the Fair Work Ombudsman: 

• The direction to take leave must be reasonable, in writing, and given within the required notice period under the award or agreement. For many awards, that’s at least 28 days’ written notice before the shutdown starts.
  (Source: Fair Work Ombudsman – Rules and entitlements during the end-of-year holiday season) 
• If your award or agreement doesn’t include shutdown rules, you can’t direct annual leave—you’ll need to reach agreement with each worker about taking annual or unpaid leave instead.
  (Source: Fair Work Ombudsman – Direction to take annual leave during a shutdown) 
• If a public holiday falls during the shutdown while someone is on paid annual leave, that day is treated as a public holiday, not annual leave.
  (Source: Fair Work Ombudsman – Rules and entitlements during the end-of-year holiday season) 
• Workers who start after the notice has been issued must still receive written notice of the shutdown as soon as reasonably practicable. 

👉 In short —if you’re closing for Christmas, you need to give proper notice, issue written directions, and handle leave balances correctly. Otherwise, your direction may not be valid under Fair Work rules. 

What This Means for Your Business

For small and medium business owners, managing a shutdown can be trickier than it sounds. You need to:

• Confirm which modern award applies to your workers.
• Check if it allows a shutdown clause and what notice period applies.
• Provide written notice to all affected workers at least 28 days before closure.
• Communicate clearly about pay, leave balances, and public holidays.
• Reach written agreements with anyone who doesn’t have enough accrued leave.
• Keep written records of all directions and agreements to remain compliant.

If that sounds like a lot to keep track of—it is. And that’s exactly where Assurance HR Management (AHR) can help.

Let AHR Manage Your Christmas Closure the Compliant Way

At Assurance HR Management, we help business owners take the confusion out of Christmas shutdowns.

We can:

• Review your modern award and confirm obligations.
• Prepare compliant written notices and leave direction templates.
• Advise on reasonable notice periods and agreement options.
• Help manage public holiday payments under Fair Work rules.
• Update your Leave & Shutdown Policy and contracts for future compliance.

✅ Our goal is simple—to make sure your business closes confidently and compliantly, without the risk of Fair Work penalties or worker disputes.

Because when it comes to HR, we’re the Workplace Problem Solvers.

Example Email Template for Your Team

Subject: Christmas/New Year Shutdown—[Your Business Name]

Hi [Name],  

We’ll be closing for our annual Christmas/New Year shutdown from [start date] to [end date], reopening on [reopen date].  

In line with our award obligations and Fair Work’s guidance, we’re giving you written notice of this shutdown and directing you to take paid annual leave for the duration of this period.  

If you don’t have enough annual leave accrued, please contact [Contact Person] by [date] to discuss options, which may include taking annual leave in advance or unpaid leave by agreement.  

Public holidays during the shutdown will be treated as public holidays, not annual leave.

If you have any questions, please reach out to [Contact Person].  

Kind regards,  
[Your Name]  
[Title] | [Business Name]  

Don’t Leave Compliance to the Last Minute

The Fair Work Ombudsman is clear—you must give written notice and follow the correct process when closing for Christmas.

AHR can handle this for you quickly and correctly, ensuring your business stays compliant, your workers are informed, and your break is worry‑free.

🎄 Get your Christmas Shutdown sorted today.
📞 Contact Assurance HR Management on 1800 577 515 or visit assurancehr.com.au and let us take care of the details.