Annual leave should be something to look forward to. It’s a chance for your employees to take a well-earned rest, spend time with family, go travelling and come back energised and full of fresh ideas.
However, if you’re the person responsible for managing your company’s annual leave, it can all get a bit stressful, especially around Christmas!
If you’re more anxious than excited by the thought of annual leave, our HR experts have answered the top holiday queries that tend to come up as December approaches.
We’ll look at:
- Forcing an employee to take holiday over Christmas
- What to do when everyone wants time off
- Retracting annual leave once it’s been granted
Managing a Christmas shutdown: Can you force employees to take holiday?
If you know that your business will always shut down between Christmas and New Year, we recommend letting employees know about this as far in advance as possible.
Ideally, you’ll have included this in your employment contracts, so that employees are aware from the moment they join you.
You’ll need to let staff know as soon as possible if you expect them to keep back sufficient holiday to cover a Christmas shut down.
HR software can really help here as you can pre-book the necessary days for all your employees yourself, preventing them from using them elsewhere in the year.
No clause in your contract regarding Christmas annual leave?
It’s not essential to have a clause in your employment contracts if you want employees to take holiday over Christmas and New Year.
By law, you only need to give them at least twice the amount of notice as the number of days of holiday that you want them to take.
So, if you wanted them to take 4 days off over Christmas, you’d have to give them at least 8 days’ notice. Be mindful though that such short notice may lead to disgruntled employees!
The practical difficulty with doing this is that if your holiday year is January to December, employees may not have any holiday allowance left if you haven’t warned them in advance to save the holiday.
You may be able to negotiate that employees deduct any shortfall in the number of days holiday they would need from the new holiday year allowance, but this will require their agreement.
If they’re reluctant to do this, your options would either be to allow them to work, if it’s still practical for them to do so, or to offer a one-off additional holiday allowance for the year.
Holiday management headaches?
From calculating holiday entitlement and pay to booking leave, our software can help.
Busy over the festive season but everyone wants time off?
If your business is busy during the holidays you can limit annual leave during this time, but it’s important to make this clear in advance, ideally in your employment contracts.
One way to approach this is to allocate leave on a first-come, first-served basis.
Alternatively, you could ask everyone to submit requests for time off over Christmas as early in the year as possible, and try to fulfil each request as fully and as fairly as possible given business needs and competing requests.
Already granted annual leave for the festive season but need to retract it?
Going back on your acceptance of an annual leave request isn’t advisable, but it would be possible to do so, if faced with a business-critical emergency. You’d also have to be prepared to pay compensation if the employee was to lose money spent on a holiday booking or travel arrangements.
Needless to say, it’s also important to consider the impact on staff morale that an about-turn like this will have.
A few more tips to take the stress out of Christmas annual leave
- Encourage staff to submit annual leave requests as far in advance as possible.
- Regularly review how much annual leave your staff have taken throughout the year.
- Be proactive in encouraging staff to take annual leave, especially if you need annual leave requests to be well spaced across the whole year to ensure you have enough cover.
Well-written employment contracts, good internal communication and a streamlined process for submission and review of annual leave are the keys to avoiding the common pitfalls that tend to arise around annual leave towards the end of the year.
Get HR software
HR software can really help, making it easy for staff to request annual leave and providing you with a business-wide view of the leave that’s been booked so far, and how much is left to take.
For advice on specific issues, or support with employment contracts, our HR consultants can help.
- Office Christmas parties: What you need to know as an employer
- How to manage staff holidays
- What to include in an annual leave policy
The content of this blog is for general information only. Please don’t rely on it as legal or other professional advice as that is not what we intend. You can find more detail on this in our Terms of Website Use. If you require professional advice, please get in touch.
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