Year-end closedown: leave, public holidays and pay over December

1. Tell staff the closedown dates in writing, now

If you close between Christmas and New Year, staff need to know the dates early enough to plan. Put the dates in writing and say how the days will be treated: annual leave, paid closedown days on the business, or a mix.

2. You can decide when leave is taken, within limits

The Basic Conditions of Employment Act gives full-time employees at least 21 consecutive days of annual leave per leave cycle, which is 15 working days for a five-day week. Where there’s no agreement on timing, the employer may decide when leave is taken. A closedown clause in your contracts or leave policy makes this far easier to apply fairly, so check yours says so.

For staff who don’t have enough leave to cover the shutdown, you can agree to advance leave or agree on unpaid days. The key word is agree. Don’t simply deduct the days from pay: deductions generally need the employee’s written consent.

3. Know the public holidays in the period

Only a public holiday that falls on a Sunday moves to the Monday. The Day of Goodwill falls on a Saturday this year, so it doesn’t move: staff who normally work Saturdays get it as a paid holiday, and Monday-to-Friday staff don’t get an extra day off.

If a public holiday falls during someone’s annual leave on a day they would normally have worked, it doesn’t count as a leave day.

4. Working on a public holiday is by agreement, and costs more

Staff can only be required to work on a public holiday by agreement. If the holiday falls on a day they would ordinarily work, pay is at least double their normal daily wage. If you trade over the festive season, agree the roster in writing now rather than on the 15th.

5. Bonuses and 13th cheques

The law doesn’t require a year-end bonus. It becomes an obligation when it’s in the contract, or when it has been paid consistently enough to become an established practice. If you’re changing what you pay this year, explain it early and apply it consistently across the team.

6. Fixed-term contracts that end in December

A contract that has been renewed before, or where the person was told they’d probably be kept on, can create a reasonable expectation of renewal. Not renewing it can then be treated as a dismissal. Decide now, and communicate the decision properly.