As the festive season approaches, it’s vital for business owners to understand their obligations under employment law. Christmas is a time of celebration, but it can also present unique challenges in the workplace, from managing holiday requests to handling Christmas parties.

Here’s a practical guide to help you navigate these issues while staying compliant with the law and fostering a positive working environment.

1. Bank Holidays: are employers obliged to give time off?

In England, the Christmas period includes bank holidays such as Christmas Day, Boxing Day, and New Year’s Day. However, employers are not automatically required to give employees time off on these days.

The key considerations are:

• Contract terms: check the employment contracts. If the contract explicitly states that employees are entitled to bank holidays off, this must be honoured.
• Working hours: if your business operates on bank holidays, ensure employees understand this expectation and that appropriate arrangements are in place.
• Annual leave use: employers can require employees to use their annual leave for bank holidays if the contract allows. However, this needs to be clearly communicated.

It’s also worth noting that if employees are required to work on a bank holiday, there is no statutory obligation to pay them extra unless this is outlined in their contract.

Top tip: ensure you have contracts of employment in place that cover this issue as is appropriate for your business.

2. Dealing with annual leave requests over Christmas

December is a peak time for annual leave requests, and managing these fairly can be tricky. Here are some tips:

• First-come, first-served: make it clear that requests will be granted on a first-come, first-served basis to avoid disputes, or encourage smaller teams to see if they can agree who will take which days off and consider when cover is required.
• Transparent policies: have a clear annual leave policy in place, specifying how you handle competing requests during busy periods.
• Rotational systems: if possible, implement a rotation system to ensure everyone gets a fair chance to take leave over Christmas.
• Notice periods: employees should provide adequate notice when requesting leave. You can refuse a request if it would disrupt your business operations, but you must give at least as much notice as the leave period requested.

Remember, denying leave without a valid reason or appearing to show favouritism can lead to grievances or claims of unfair treatment or discrimination.

Top tip: consider implementing a system whereby the Christmas holiday terms are confirmed to employees in good time, invite annual leave requests with a cut-off date, then consider the requests in a fair way to determine which are granted.

3. Managing sickness absence over Christmas

Sickness absence tends to spike during the festive season, so it’s important to have robust procedures in place:

• Sickness policies: ensure your sickness absence policy is up-to-date and employees are aware of the reporting requirements.
• Monitor patterns: be vigilant for patterns of absence, such as repeated sickness on the last working day before Christmas. If you suspect abuse, you can investigate, but tread carefully—unfounded accusations can harm morale.
• Occupational health: for persistent issues, consider occupational health assessments to determine whether there’s an underlying problem.

While it’s natural to question suspicious absences, ensure any disciplinary action is backed by evidence and follows a fair process.

Top tip: Avoid the work Christmas party being mid-week if at all possible, and remind staff that any absences should be reported in accordance with usual procedure.

4. Christmas parties: avoiding legal pitfalls

Work Christmas parties can boost morale, but they can also lead to employment law headaches. Here’s how to prevent issues:

• Remind employees of conduct expectations: circulate your code of conduct before the event, emphasizing that the same standards apply at work-related functions.
• Alcohol consumption: if alcohol is being served, encourage moderation and provide non-alcoholic alternatives. Avoid unlimited free alcohol, which can lead to misconduct.
• Harassment prevention: make it clear that harassment or inappropriate behaviour will not be tolerated and outline the consequences.
• Post-party issues: if incidents occur, address them promptly and in line with your disciplinary procedures. Avoid knee-jerk reactions; investigate thoroughly before taking action.

Remember, employers can be held vicariously liable for employees’ actions at work-related events, so proactive planning is essential.

Top tip: clear communication. Have a policy and circulate it around all staff prior to any work Christmas party.

5. Christmas pay: are employees entitled to more?

There is no statutory requirement to pay employees extra for working over Christmas. However, many employers offer enhanced pay rates as an incentive for working unsociable hours.

Key points to consider:

• Contractual obligations: if the contract stipulates enhanced pay for Christmas working, this must be honoured.
• National minimum wage compliance: ensure that any additional Christmas payments or bonuses do not inadvertently bring employees below the minimum wage.

Providing small gestures such as vouchers or festive bonuses can boost morale without creating ongoing contractual obligations.

Top tip: though there is no automatic right to enhanced pay over Christmas bank holidays, consider whether your business can afford to pay a little something extra to employees as a gesture, whether that be a pay enhancement or a small “Christmas bonus”. That type of goodwill can go a long way with employees and when employees feel valued it can really boost morale and loyalty to your business. Just be sure to be transparent as to your policy, criteria and terms for eligibility to any such payment so that it is applied fairly.

Final thoughts

Christmas can be a stressful time for business owners, but clear communication and consistent application of policies will go a long way in managing expectations and preventing disputes. By understanding your legal obligations and planning ahead, you can ensure a smooth festive period for your team and your business.

If you have concerns or need tailored advice on employment law issues, don’t hesitate to consult a specialist solicitor. A little preparation now can save significant headaches later.

Wishing you and your employees a happy and legally compliant Christmas!

For further advice, feel free to contact Sarah Naylor on 01302 320621 or at sarah.naylor@switalskis.com. We’re here to help with all your employment law needs.