6 Things Employers Should Consider in Early December

6 Things Employers Should Consider in Early December

With Christmas fast approaching,  its important to make sure your business is suitably covered over the Christmas period, and that you avoid paperwork mishaps and breaches of the Holidays Act 2003.  So here is 6 Things Employers Should Consider in Early December!

Firstly, with the current labour shortage most businesses are experiencing, the Christmas break can be a good opportunity to show your appreciation to your team.  A simple Christmas get together and appreciation gift can be the difference between retaining a valued team member, or going through the recruitment process in the New Year.

ONE: Looking at annual leave entitlements, it’s important to ensure that your employee’s take regular breaks.  This is beneficial to their health, happiness and of course productivity.  Managing annual leave entitlements, also protects your business by minimising the risk of large leave entitlement pay outs.


TWO: Taking time out over the Summer? You can have an “annual close down” for your whole business or part of it, but give employees at least 14 days notice in writing.  You can ask staff to take their existing annual leave.   If they don’t have leave left, they can take leave in advance if you both agree  or leave without pay.    Whilst legally, you can enforce a Christmas shut down, leaving an employee without pay over the Christmas period is unlikely to promote feelings of goodwill and Christmas cheer – consider the long term implications!


THREE: Employees asking to cash up their annual leave? If you agree, an employee can cash up, up to one weeks annual leave in any entitlement year.   Whilst you have the right to decline the request (in writing) you are not required to give a reason.    Whether you accept is entirely your choice, and possibly dependent on your businesses cashflow.  If cashing up the annual leave assists an employee’s financial hardship, the long term good will may make this a good investment.


FOUR: Need employees to work the public holidays? The only way you can make an employee work a public holiday is if it falls on a day they normally work, and the requirement to work public holidays is included in the employment agreement: Include link to employment agreements


FIVE: Know how much you need to pay them? Working on a public holiday attracts different rates.   If the public holiday falls on a day they would normally work, pay them time and a half and a day in lieu.   If the holiday doesn’t fall on a day they would normally work, you pay them time and a half.


SIX: Don’t have an employment agreement, or need to modify an agreement? There are rules to follow.    Either talk to us or an employment specialist.


Confused about holiday pay calculations, or need some help processing payrolls over the Christmas period?  Call us.


Our ‘6 Things Employers Should Consider in Early December’ not enough?

The better you understand your business and your financials, the easier it will be to make more money and ultimately achieve your goals.   We have developed comprehensive resources to enable business owners to fully understand and interpret their numbers.  Need more help? Join our free webinars on financial awareness coaching or talk to us about personalised financial awareness coaching.  Contact Samantha for a call, zoom or meet on 06 871 0793.



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Five Ways to Improve Cashflow

7 Ways to Save on Accounting Fees


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