Reduction of Hours Notice
This Notice of Reduction of Hours notify an employee of a reduction in their working hours during a business downturn.
4.8 (4 reviews)
Last updated January 29, 2025
Under 5 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
Casual employee hours can be readily changed in response to your business needs however reducing the hours of a full-time or part-time employee requires the employee’s acceptance in writing. A written record can help protect a business if any questions or legal issues arise regarding the reduction of hours. It is recommended that you discuss the reduction with your employees first before sending out the notice to reduce their hours.
Standing down employees
If your business cannot operate normally during this time, you may be able to stand down employees. This is only applicable for businesses that have been forced to close due to an unforeseeable event. Standing down your employees also indicates that you intend to get your employees back to work as soon as your business is able to.
Consequences of reducing hours
When reducing your employee’s hours, you should also consider other effects it may have. This includes loss of sales and your employee potentially moving on to a new job with increased hours of work.
The Legal Risk Score of a Reduction of Hours Notice Template
Our legal team have marked this document as medium risk considering:
- There is a risk that the temporary nature of the reduced hours might be unclear or indefinite, as the document states the new schedule will "operate until further notice," potentially leading to uncertainty or dissatisfaction for the employee.
- The document does not specify any recourse or additional support for the employee whose hours are being reduced, which might affect their financial stability and morale.
- If not properly executed, this measure could be in breach of the Fair Work Act.
Reduction of Hours Notice Checklist
Complete your free Reduction of Hours Notice with our checklist
Official Notification
Deliver the notice to the employee either through email or as a hard copy to ensure they receive it officially.
Open Communication
Encourage the employee to contact you or the other mentioned contact for any queries or concerns regarding the change in hours.
Monitor and Update
Regularly update the employee on any changes or end date of the reduced work hours arrangement.
Use this Notice of Reduction of Hours if:
- You would like to reduce a full-time employee’s working hours.
- You would like to concisely explain to the employee why his or her hours need to be reduced.
- You want to follow all the proper processes in reducing the employee’s working hours.
- You would like to have a record of the reduction of hours in the event of any legal action.
What does the Notice of Reduction of Hours cover?
- Information about the change of working hours, e.g. what the change will be and when it will occur.
- The reasons why this change is necessary for the company.
- Invites employees to give their views about the impact of the change.
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