A Christmas shutdown involves more than simply marking dates in the calendar. It requires careful consideration of employee leave entitlements, public holidays, payroll schedules, and the cash flow needed to meet those obligations. Taking the time in November to review employee leave balances, payroll arrangements, and shutdown requirements can help avoid last-minute complications, ensure employees know what to expect over the holiday period, and allow the business to finish the year with its commitments accounted for.

Start with the arrangements that apply to your employees

The ability to direct an employee to take annual leave during a shutdown depends on their award or enterprise agreement. For employees covered by neither, a requirement to take paid annual leave must be reasonable.

The relevant provisions should be checked before directions are issued, including any notice requirements. Once confirmed, review each employee’s projected leave balance at the start of the closure. Someone who has recently joined the business or taken an extended holiday may need a different arrangement from a long-serving employee with substantial accrued leave.

If an employee does not have sufficient leave accrued to cover the shutdown period, the available options should be discussed and agreed upon before payroll is finalised. Depending on the applicable arrangements, this may include taking leave in advance or unpaid leave. Neither option should be applied automatically without prior agreement.

Account for public holidays separately

It is important to remember that the Christmas shutdown period may include public holidays. Employees who are entitled to payment for a public holiday should not have that day deducted from their annual leave balance. Ensuring leave and public holidays are coded correctly in the payroll system helps employees receive the correct pay.

Leave a clear handover

As the shutdown period approaches, it is also worth confirming who will be responsible for key payroll tasks while the business is closed. This includes approving timesheets, processing payroll, and responding to any employee queries that may arise. Employees should be advised of any changes to payroll processing schedules well in advance, and payroll systems should be reviewed to ensure they are configured correctly for the holiday period.

Effective planning reduces the risk of last-minute issues and allows businesses to approach the final weeks of the year with greater confidence. Contact Count Gold Coast’s Bookkeeping team to review your leave records, prepare a holiday payroll forecast and organise the pay runs due during your closure. Where award interpretation is required, we can coordinate with your workplace-relations adviser.

General information disclosure

This article provides general information only and does not constitute accounting, taxation, legal or employment advice. It does not take into account your business circumstances or the awards, enterprise agreements and employment contracts that apply to your employees. Obtain advice appropriate to your circumstances before acting. Information is current at 5 November 2026 and may change.

Sources

Fair Work Ombudsman:Direction to take annual leave during a shutdown

Fair Work Ombudsman:Not working on public holidays

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