Christmas Shutdowns: What Employers Need to Know for 2025

As the festive season nears, many workplaces start winding down operations, balancing reduced demand with employees eager to take time off to spend with their family and friends. For employers, this period can be a double-edged sword: while it offers a chance to give staff a well-deserved break, it also creates compliance risks if shutdowns and leave are not properly managed. Planning ahead is critical, not only to ensure legal obligations are met, but also to provide clarity for staff at a time when both personal and professional pressures are at their peak.

Under the National Employment Standards (NES) and the Fair Work Act 2009 (Cth), employers need to understand their obligations under the relevant modern award, enterprise agreement and employment contracts before deciding to close for the Christmas/New Years period.

Under the NES, employers may direct employees to take annual leave, but such direction must always be reasonable and in accordance with the employee’s industrial instrument.

Since May 2023, most modern awards include a model shutdown clause, requiring employees to:

• Give at least 28 days’ written notice of the shutdown. If a new employee is hired after the notice has already gone out, they must receive written notice as soon as practicable;
• Direct employees with sufficient annual leave to take that leave during the shutdown, provided the direction is reasonable; and
• Manage shortfalls by negotiating unpaid leave, time off in lieu, or annual leave in advance, as allowed by the relevant award or agreement.

It is important for employers to check their awards and agreements carefully because not all awards or enterprise agreements allow leave in advance, unpaid leave during shutdown, or for the giving of direction for specific employee categories. Where only part of the business is shutting down, employers may consider alternative duties for affected employees, provided this aligns with the relevant industrial instrument. Employers are encouraged to manage leave balances throughout the year, communicate expectations clearly, and keep written records of all directions and agreements.

Employers should also remember that public holidays fall during the shutdown period (eg. Christmas Day, Boxing Day, New Year’s Day) are paid as public holidays, and are not deducted from Annual Leave.

Adding another layer this year is the Right to Disconnect, which now applies to all businesses from 26 August 2025. Employees now have the right to refuse to monitor, read or respond to work contact outside of hours, unless it is unreasonable to do so. This includes contact from employers, colleagues, or third parties.

Now is the perfect time for employers to review after hours policies and clarify expectations around contact after hours, ensuring they align with the new Right to Disconnect obligations.

For shutdown planning, this means:

• Out of hours contact should be minimised. For example, avoid asking staff to check emails during the shutdown period unless arrangements are clearly agreed.
• Set expectations early. Employers and employees should discuss how and when contact may occur during the break, particularly for managers, supervisors, or staff with client facing responsibilities.
• Check pay and conditions. Some awards or agreements may provide entitlements for on-call or out of hours work. These should be reviewed and communicated before shutdown.

Proactive discussions with both staff and clients can help avoid misunderstandings and ensure compliance with new laws. It’s also important for HR teams to work closely with marketing and communications teams to announce shutdown dates across various channels such as websites, email footers and client notices, reducing client confusion and reinforcing compliance with the Right to Disconnect laws.

1. Review your awards, agreements and contracts for shutdown provisions and leave rules.
2. Give clear, written notice to employees of shutdown dates (at a minimum, 28 days in advance).
3. Check leave balances early and discuss options where balances are insufficient.
4. Agree in writing to any advanced or unpaid leave arrangements.
5. Set out of hours contact expectations in line with the Right to Disconnect.
6. Closer to the time, communicate with clients about availability, highlighting key points of contact and response times over the break.
7. Plan for public holidays to ensure entitlements are correctly applied.

Mapien’s team of workplace experts are here to ensure your business is well-prepared for the festive season and beyond.  If you have questions or concerns regarding Christmas shutdowns, please contact us below and one of Workplace Strategists will be in touch within 24 hours.