The Fair Work Commission (FWC) has decided to significantly vary the annual leave shutdown provisions in 78 modern awards by replacing them with a new model annual leave shutdown clause (Model Clause). 

The most significant change for many employers will be that the Model Clause will remove the ability for an employer to direct an employee to take a period of unpaid leave if that employee does not have a sufficient annual leave balance to cover the shutdown that was previously provided for in many modern awards.

This Member Advice NAT 001/23 sets out the upcoming changes to the shutdown provisions of the 78 modern awards (listed in Attachment A of the Advice) and identifies potential options to mitigate any adverse impacts on employers.