Rules and Entitlements During Christmas Shutdown

The end of the year is a busy and emotional time in early childhood services. Many services close for a short period over Christmas, and while this break can be a welcome pause, the rules around shutdowns can feel confusing for educators. This guide breaks down the key points of the Children’s Services Award in clear, educator‑friendly language so everyone understands their rights and what to expect during a Christmas shutdown.

What Is a Christmas Shutdown?

Under the Children’s Services Award 2010, a service may choose to shut down all or part of its operations for a set period during the Christmas vacation. This is referred to as a temporary shutdown period.

If a service decides to close, it may also require permanent employees to take paid annual leave during this time.

1. Employers Can Direct Educators to Take Annual Leave

Clause 24.4 – Direction to Take Annual Leave During Shutdown allows employers to require permanent staff to use their annual leave during a shutdown, provided the correct notice is given. 

This is one of the few situations where a direction to take leave is permitted under the Award.

2. Educators Must Receive 28 Days’ Written Notice

The employer must give at least 28 days’ written notice of the shutdown, unless all staff agree to a shorter period. 

This ensures educators have time to plan financially and personally.

3. Annual Leave Entitlements

Permanent employees (excluding casuals) are entitled to 4 weeks of paid annual leave per year of service, accruing progressively according to ordinary hours and carrying over year to year. 

Leave Accrual During Shutdown

Annual leave continues to accrue during the shutdown unless the educator is taking leave without pay

4. Public Holidays Are Still Paid

If a public holiday falls on a day an educator would normally work, they must be paid for that day — even during the shutdown period.

This protects educators’ entitlements and ensures they are not disadvantaged by the closure.

5. If You Don’t Have Enough Annual Leave, You Have Options

If an educator does not have enough annual leave to cover the entire shutdown, the employer and employee can agree on alternatives such as: 

• time off in lieu
• annual leave in advance
• leave without pay

These options must be mutually agreed upon; they are not automatic deductions.

6. Casual Employees

Shutdown rules apply only to permanent staff. Casual educators are not “on shutdown”; they simply are not rostered during the closure period.

Summary for Educators

A Christmas shutdown can be a smooth and supportive process when everyone understands their rights. Under the Children’s Services Award:

• Services can direct permanent staff to take annual leave
• 28 days’ written notice is required
• Annual leave continues to accrue (unless on LWOP)
• Public holidays remain paid
• Options exist if leave balances are low
• Casuals are not covered by shutdown provisions

These rules ensure fairness, clarity, and consistency across the sector.

Reference: 
Direction To Take Annual Leave During A Shutdown, Fair Work Australia