Shutdown Award Provisions

Fair Work Commission Shutdown Provision Update

The Fair Work Commission recently reviewed the shutdown provisions in 78 modern awards. It found inconsistencies and determined that these awards require a model shutdown provision to replace existing clauses.

Previously, employers could direct employees to take unpaid leave if they lacked sufficient leave. This clause has now been removed. Under the updated model clause, employers and employees may agree to a reasonable period of unpaid leave during a shutdown.

These changes take effect from 1 May 2023 and apply to holiday periods such as Christmas and New Year.

Key changes include:

Employers cannot require employees to take unpaid leave if they lack sufficient annual leave. Leave without pay must be by agreement.
Employees may agree to take annual leave in advance if they do not have enough accrued leave.
Employees who do not agree to take leave in advance or unpaid leave must either continue working or receive wages during the shutdown.
Employers must provide written notice of the shutdown at least 28 days in advance, unless a shorter period is mutually agreed.

With these changes approaching, employers should proactively review leave processes and ensure employees have sufficient leave balances or relevant entitlements to cover any planned shutdown periods.

Please feel free to call us at 1800 577 515. We’ll help you assess the impact and plan the next steps for your team and business.

List of Modern Awards to Be Varied with the Model Clause:

Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020
Aircraft Cabin Crew Award 2020
Airline Operations–Ground Staff Award 2020
Alpine Resorts Award 2020
Aluminium Industry Award 2020
Ambulance and Patient Transport Industry Award 2020
Animal Care and Veterinary Services Award 2020
Aquaculture Industry Award 2020
Asphalt Industry Award 2020
Banking, Finance and Insurance Award 2020
Black Coal Mining Industry Award 2020
Broadcasting and Recorded Entertainment Award 2020
Building and Construction General On-site Award 2020
Business Equipment Award 2020
Car Parking Award 2020
Cemetery Industry Award 2020
Cement, Lime and Quarrying Award 2020
Cleaning Services Award 2020
Clerks—Private Sector Award 2020
Coal Export Terminals Award 2020
Commercial Sales Award 2020
Concrete Products Award 2020
Contract Call Centres Award 2020
Educational Services (Post-Secondary Education) Award 2020
Electrical Power Industry Award 2020
Electrical, Electronic and Communications Contracting Award 2020
Fitness Industry Award 2020
Food, Beverage and Tobacco Manufacturing Award 2020
Gardening and Landscaping Services Award 2020
Gas Industry Award 2020
General Retail Industry Award 2020
Graphic Arts, Printing and Publishing Award 2020
Hair and Beauty Industry Award 2020
Health Professionals and Support Services Award 2020
Higher Education Industry—General Staff—Award 2020
Horse and Greyhound Training Award 2020
Hospitality Industry (General) Award 2020
Hydrocarbons Industry (Upstream) Award 2020
Joinery and Building Trades Award 2020
Journalists Published Media Award 2020
Legal Services Award 2020
Local Government Industry Award 2020
Manufacturing and Associated Industries and Occupations Award 2020
Meat Industry Award 2020
Mining Industry Award 2020
Mobile Crane Hiring Award 2020
Miscellaneous Award 2020
Nursery Award 2020
Nurses Award 2020
Oil Refining and Manufacturing Award 2020
Pest Control Industry Award 2020
Pharmaceutical Industry Award 2020
Plumbing and Fire Sprinklers Award 2020
Poultry Processing Award 2020
Premixed Concrete Award 2020
Professional Employees Award 2020
Racing Clubs Events Award 2020
Racing Industry Ground Maintenance Award 2020
Real Estate Industry Award 2020
Registered and Licensed Clubs Award 2020
Restaurant Industry Award 2020
Road Transport (Long Distance Operations) Award 2020
Road Transport and Distribution Award 2020
Salt Industry Award 2020
Seafood Processing Award 2020
Security Services Industry Award 2020
Silviculture Award 2020
Storage Services and Wholesale Award 2020
Sugar Industry Award 2020
Supported Employment Services Award 2020
Surveying Award 2020
Telecommunications Services Award 2020
Textile, Clothing, Footwear and Associated Industries Award 2020
Timber Industry Award 2020
Vehicle Repair, Services and Retail Award 2020
Water Industry Award 2020
Wine Industry Award 2020
Wool Storage, Sampling and Testing Award 2020