The Christmas break is fast approaching and employers need to start thinking about their employees and their holiday pay entitlements.
If you are a business which has a Christmas closure period, or if you have skeleton staff over the holiday season, it is essential to make sure that you are ticking all the boxes when it comes to correctly paying your employees. Here are our top tips to assist you with this process:
- Remember, if your employee works weekends, they will get the Saturday or Sunday as paid days off. Alternatively, if your staff work on the Saturday or Sunday (being a public holiday) they will be entitled to paid time and a half and a day in lieu.
- If your normal payday falls on a public holiday, set up your payments of wages/salaries to go out the day before. This way you can ensure that if any employees have automatic payments set up, they will not be caught short.
- The Holidays Act states that at the commencement of the closedown period, your employees are entitled to annual holidays. This means that you must pay your employee’s holiday pay in full at the commencement of the closedown period (unless you reach an agreement otherwise with your employees).
- Be transparent - work out your employee’s holiday entitlements before the Christmas break and have conversations with your employees who may not have enough leave to cover the period.
- If your employees do not have any leave owing or not enough leave to cover the entire closedown period, you and your employee can agree that they can take leave in advance.
- This year none of the public holidays fall on a weekend. However, bear in mind that if Christmas, Boxing Day, New Year’s day and/or January 2nd fall on a Saturday or Sunday, which are not normal working days, the next day (or days) will be considered the public holiday – also known as Mondayisation. For example, if Christmas falls on Sunday, Monday will be treated as the public holiday.
It is important to get holiday pay right, especially over the Christmas/New Year Period. Contact Georgia Watts or Shelley Greer at Gallie Miles Lawyers if you have any employment and/or leave related questions on 07 872 0560.