Every employee in New Zealand is entitled to 12 public holidays over the year. The 12 days refer to the 11 fixed dates that are common right across the country, namely: New Years Day, 2 January, Waitangi Day, Good Friday, Easter Monday, ANZAC Day, King’s Birthday, Matariki, Labour Day, Christmas Day and Boxing Day.
The one additional public holiday is the Anniversary Day of the province in which the employee is based.
Many public holidays occur around the same time as school holidays. This presents a big challenge for employers as employees look to extend time off by requesting annual leave days either side of a public holiday, or extended leave to spend time with family during school holidays.
When too many people take annual leave at the same time, the result is often understaffing. Leading to increased stress and workloads for managers and remaining employees.
There are several strategies you can take as an employer to ensure you aren’t inundated by requests for annual leave at popular periods, and at the same time, prevent a tidal wave of unexpected sick leave if applications are denied. It starts by knowing your obligations and rights as an employer, alongside having a clear understanding of the entitlements of your employees.
Is everyone here?
As an employer you should provide equal access to annual leave for all employees. Including at peak periods throughout the year when requests are at their most popular.
To be prepared for the increase in leave requests around school holidays, it’s helpful to mark your calendar as a reminder of when they occur, noting public and private schools don’t always align. You should also make note of other festivals, celebrations, or observances, such as Ramadan, Chinese New Year, or Passover, when employees may look to request extended leave to be with family or to travel.
Training team members and implementing workload planning to ensure coverage during absences ensures there’s minimal disruption to productivity. Easing the workload of remaining employees.
First in, first out
One of the most utilised policies for annual leave is first-in first-out. Meaning, those that put their leave application in first are most likely to have it approved. While that system is ok, keep in mind each request still needs to be individually considered on its merits.
Putting a leave policy in place will make managing leave requests much easier for you. It can also help minimise staff from being disgruntled if their leave is not approved. Including your leave policy in the onboarding program of new employees and in your employee handbook provides clarity on how leave requests are received, processed and prioritised.
It can also be helpful to send a company-wide email or post a notification on a noticeboard requesting all staff to confirm the likelihood of taking annual leave in the coming months. This provides greater visibility and advanced notice of requests before and after public holidays.
Setting a realistic limit on the number of employees that can be on leave at any one time protects your business and workforce from the problems of being short-staffed.
Some businesses also opt for forced leave. Closing over what, in some industries, can be a very quiet trading period, such as between Christmas and New year.
Approved/denied
Annual leave is taken when it’s agreed on by employers and employees, as outlined in the– Holiday’s Act 2003, however, an employer can’t unreasonably refuse a request for leave. Before declining leave requests consider alternative options.
Some questions you can ask your employee include:
* Can you take annual leave at a different time?
* Can your annual leave start a week earlier or finish a week later?
* Can a longer period of leave be broken into two shorter periods?
If the leave request still cannot be agreed upon after a discussion, clearly outline the reasons for the decline, stating what the barriers are and why they can't be overcome.
Business owners who are unsure about their obligations or rights should seek advice from an employment relations professional to ensure they remain compliant with legislation.
An employer is not obligated to approve a leave request if an employee does not have any leave entitlement. Although many businesses do approve leave in advance or leave without pay.
Let’s be clear
Any communication on the outcome of an annual leave request should be formalised in writing in either hard copy or digitally. This is part of maintaining a record of leave balances, as required by law, and creates a record of facts.
Having a record of facts is important in the case of denied annual leave requests because it details why the decision was made and how you informed your employee. If the matter is escalated to the Employment Relations Authority, this record can serve as evidence as to why the denial was reasonable.
If an annual leave request is not viable for the continued functioning of the business, rather than just refusing leave, explore if there is room for compromise. This can prevent potential conflict and promotes a fair decision-making process.
If you deny annual leave, it’s important to be understanding of your employee’s situation – they will likely be upset or angry. Listen to their frustrations and acknowledge their emotions when advising why their request was rejected, emphasising the operational needs of the business and the policies in place when applying for leave.
For advice on successfully managing multiple requests for annual leave, contact the team at Peninsula on 0800 675 697.