Wrap It Up: Planning a Smooth Holiday Close Down

Navigating Christmas Close-Downs: Ensuring Rest, Fairness, and Compliance 

As the festive season approaches, many New Zealand businesses are preparing for annual Christmas close-downs. For employers and HR professionals, this period presents an opportunity to prioritise rest for employees, while also managing operational requirements and legal obligations. Knowing how to handle close-downs effectively is essential; read on to check your compliance with the Holidays Act, and support your team in getting a well-deserved break. 

Understanding the Legal Framework for Close-Downs 

The Holidays Act 2003 governs the rules around annual leave and public holidays during Christmas close-downs. Employers can implement a close-down period if: 

1. They provide employees with at least 14 days’ notice. 
   This notice must be given in writing and should clearly state the dates of the close-down period. Early communication ensures employees can plan their leave or alternative arrangements.
2. Annual leave is managed appropriately.
3. Employees with sufficient leave balances must use their accrued annual leave during the close-down.
4. If employees don’t have enough leave, employers can:
5. Agree to advance leave (allowing employees to take leave before it accrues).
6. Allow employees to take unpaid leave.
7. Public holidays are observed. 
   Statutory public holidays during the close-down (e.g., Christmas Day, Boxing Day, New Year’s Day) must still be paid as per entitlement if they fall on days employees would usually work. 

Encouraging a Meaningful Break 

A Christmas close-down offers an excellent chance for businesses to align operational pauses with employee wellbeing. Ensuring as many employees as possible take a two-week break can lead to higher engagement and productivity when they return. 

Benefits of a Two-Week Break 

• Rest and rejuvenation: Extended time off helps employees recharge, which is vital after a busy year.
• Equity across the workforce: Coordinated breaks mean no one feels left out or burdened by unequal work distribution over the holidays.
• Improved mental health: Time away from work reduces burnout and fosters better work-life balance. 

Planning for Operational Needs 

Some businesses, especially those in retail, hospitality, or healthcare, may not have the luxury of shutting down entirely. For these organisations: 

• Rotate shifts to ensure everyone gets a reasonable break.
• Offer incentives or rewards for those working through the festive season.
• Provide opportunities for post-holiday leave for employees who worked during the break. 

Communicating Close-Down Plans 

Clear communication is essential to a smooth close-down. Here’s how to manage it effectively: 

1. Announce the close-down early: Share the dates and details well in advance, ideally in October or early November.
2. Provide reminders: Send follow-up emails closer to the time, ensuring everyone is on the same page.
3. Be accessible for questions: Create an open channel for employees to clarify concerns about leave balances or other arrangements. 

Supporting Employees with Limited Leave Balances 

For employees who lack sufficient annual leave to cover the close-down period, consider these options: 

• Advance leave: Allow employees to borrow from future leave entitlements, ensuring they still get paid during the break.
• Unpaid leave: Be clear about the implications of unpaid leave and ensure this is only used with the employee’s agreement.
• Alternative work arrangements: In some cases, employees may prefer to work remotely or on specific projects during the close-down period. 

Addressing Common Challenges 

Challenge 1: Last-Minute Confusion Over Leave 

• Solution: Maintain a clear and up-to-date leave management system. Encourage employees to check their leave balances regularly and apply early. 

Challenge 2: Overlapping Deadlines 

• Solution: Plan workloads to ensure key deliverables are completed before the close-down. Use the weeks leading up to Christmas to set clear priorities. 

Challenge 3: Employees Feeling Forced to Use Leave 

• Solution: While employers can require annual leave during a close-down, framing it as an opportunity to rest and reset can reduce negative perceptions. 

Final Thoughts 

A well-executed Christmas close-down benefits both employers and employees by ensuring compliance, fostering rest, and creating a shared sense of fairness. By planning ahead and prioritising communication, HR teams can turn the close-down into a stress-free and positive experience for all