Is the standard practice of asking employees to take annual leave over the Christmas period still appropriate in the modern workplace? Sarah Tahamtani looks at some of the legal implications of a ‘Christmas shutdown’.
As the festive season approaches, many UK businesses face a common dilemma – how to manage operations during the Christmas period.
For many, the traditional annual ‘shutdown’ between Christmas and New Year is a standard practice, typically requiring employees to use a portion of their annual leave during this time.
Holidays and holiday pay
However, in a modern and diverse landscape, this approach warrants careful consideration given that some employees may not celebrate Christmas or may prefer to use their holiday entitlement at another time of year.
As realising flexible working patterns continues to be a critical discussion point for businesses, the issue remains as to whether employers should offer increased flexibility as to when annual leave is taken, what this might mean for workplace productivity and the legal and practical issues businesses need to consider.
Legal considerations
Employers can legally require employees (and workers) to take their annual leave at a particular time.
The Working Time Regulations 1998 permit employers to specify when employees take their leave if they give sufficient notice. Typically, the notice provided is twice the length of the period of leave the employee is being required to take.
Many employers leverage this framework to effectively close operations over the Christmas period, with the rationale that this offers employees extended downtime while accounting for potential drops in productivity and industry demand.
However, a blanket Christmas shutdown may not always be the best approach for employees, and employers should maintain a reasonable stance and consider individual circumstances when it comes to enforcing periods of leave.
Inclusivity and flexibility
Offering employees an extended period of time off over Christmas is likely to be received positively by many, and may help boost employee morale and wellbeing.
Despite this, the traditional Christmas shutdown has limitations in a modern, diverse work environment where employees are motivated by flexibility and choice.
Employees from different cultural or religious backgrounds may not celebrate Christmas and/or may prefer to use their annual leave to cover other religious celebrations or family commitments at different times of year.
Making the assumption that all employees will want to take time off during Christmas could fail to recognise the individual circumstances and preferences of a diverse workforce.
A ‘one-size-fits-all’ approach risks breeding resentment and disengagement, potentially damaging employee morale and productivity in an increasingly tight labour market.
A more flexible annual leave policy can help contribute to a more inclusive and supporting workplace which gives greater control to employees to flex this benefit to suit their needs.
Balanced approach
As ever, introducing greater flexibility requires a balanced approach and a need to weigh the impact on the business.
Consultations with employees can help identify and develop approaches that find the right balance between organisational needs and individual preferences.”
Key considerations will be how effective employees might be working on days when the majority of their colleagues are not and whether the alternative dates of their own choosing (which may be much busier), will impact on their colleagues’ workloads and service.
Consultations with employees can help identify and develop approaches that find the right balance between organisational needs and individual preferences.
Advanced planning and encouraging early communication can help premeditate and mitigate any potential challenges, such as conflicts or staff shortages at other times of year while providing a more personalised approach to employee benefits and reward.
Be transparent
The prevalence of conversations around flexible working has shifted expectations on work-life balance, with employees now seeking greater autonomy over their own working schedules, including when they choose to take annual leave.
While a traditional Christmas shutdown may still be appropriate for some businesses, an increasingly diverse workforce requires a more nuanced and personalised approach.
There won’t be a universal solution, but employers that view this issue as an opportunity to demonstrate inclusivity and flexibility are likely to see significant benefits in employee morale and engagement.
Employers should ensure transparent, open dialogues with employees are in place to allow them the space and voice to share their preferences in the context of also understanding business needs.
Neglecting to consider employee preferences could have adverse consequences when it comes to employee wellbeing, satisfaction and ultimately productivity, because after all, everyone prefers a personalised approach to how they are managed.
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