Can my employer force me to take annual leave during a shutdown period?

What the Law Says

The Fair Work Act 2009 sets out when an employer may require an employee to take annual leave, including during planned shutdowns.

Under the Fair Work Act 2009, an employer can direct an employee to take paid annual leave during a shutdown period — for example, over Christmas — but the direction must be reasonable.

A direction is reasonable if it gives the employee enough notice, doesn’t unreasonably interfere with their ability to use their leave, and aligns with the purpose of annual leave (rest and recreation).

The Act does not specify a fixed notice period, but the Fair Work Ombudsman advises that at least 4 weeks’ notice is generally considered reasonable for a shutdown direction.

An employer cannot force an employee to take more than 10 days of annual leave at once unless agreed otherwise in an enterprise agreement or award.

Statutory Text

An employer may direct an employee to take paid annual leave if the direction is reasonable.

— Fair Work Act 2009, s. 88(1) — Taking paid annual leave

Statutory Text

A direction under subsection (1) is reasonable if the employer gives the employee at least 4 weeks’ notice.

— Fair Work Act 2009, s. 88(2) — Reasonableness of direction

What to Do

Sources