The Christmas and holiday season is almost upon us again, and we’re sure that many businesses are already making plans to maximise their trade during this festive time.
One thing you may not have thought about is Christmas closedowns. If you’re planning to close down all or part of your business over the Christmas/New Year period, there are a few regulations that you may like to know about.
Can I closedown during the Christmas period?
In terms of the Holiday’s Act 2003 (the Act), businesses are allowed to have one customary closedown a year. Customary closedowns must be 12 months apart. However with the employee’s agreement a business can agree to additional times that the operations are closed. In this respect, the employer will need to agree with their employees on how the additional closedowns will be treated and what leave, or holiday arrangements will apply.
What is the procedure for a closedown?
Employers must give their employees at least 14 days’ notice in writing of a closedown. For some employers, closedown dates are predetermined especially if it is an annual closedown. Notice needs to be given to the employees outlining the specific dates even if the closedown happens every year at a similar time. If the Employer wants more than one closedown per year, the employer must obtain the employees' consent.
Can I have a closedown of parts of my business?
Employers can have one customary closedown period a year in accordance with the Act. This can be a partial or a full closedown. A partial closedown is where only part of an enterprise temporarily closes (eg: where a factory closes for maintenance while the office, dispatch and sales departments remain open). To avoid doubt, the Act states that an employer may have different closedown periods for each separate part of their business.
How are annual leave entitlements dealt with during the closedown period?
If the employee is entitled to annual holidays at the commencement of the closedown period, then the employee must use their entitlement.
Employees in their first year of employment who are not yet entitled to annual holidays, must be paid out all their accrued annual holiday pay (being 8% of their gross earnings to date, minus any taken in advance). This will have the effect of moving the employee’s anniversary date to the beginning of the closedown. The same is applicable for employees in the second or subsequent year of employment who have insufficient annual holiday entitlements to cover the closedown period
Know your obligations
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