How to manage annual leave requests over Christmas

The festive period is fast approaching, and with it comes a time when many employees hope to take a well-earned break. This year, the bank holidays fall on Thursday, December 25th, Friday, December 26th, and Thursday, January 1st. The days between these dates are considered regular working days.

If your company does not implement a Christmas shutdown, employees may wish to request annual leave during this period to spend time with family and loved ones. Proper planning is essential to manage annual leave requests smoothly and ensure the business continues to run effectively.

Plan ahead and set deadlines

It is advisable to ask employees to book their Christmas leave in advance. You may consider setting a deadline for submissions, which should at least align with the minimum notice period specified in employees’ contracts, though an earlier deadline can also be set if necessary. Employees may still submit requests after the deadline, which you have the discretion to decline.

Using a HR software for small businesses like SafeHR can simplify this process by allowing employees to submit holiday requests online, automatically tracking approvals and providing a clear view of who is off and when. This reduces administrative work and helps you plan staffing levels more effectively over the festive period.

When reviewing leave requests, assess your staffing needs to ensure adequate coverage. If employees are required to work on bank holidays, this should be clearly stated in their contracts, and they are entitled to take time off in lieu.

Managing a compulsory shutdown

If your company plans a compulsory shutdown over the festive period, consider the following:

Diversity of your workforce

Some employees may not celebrate Christmas and may prefer to use their holiday allowance for other occasions, such as religious holidays. You may allow these staff to work during the shutdown and take their holidays at a later date.

One-time vs. permanent policy

• Permanent shutdown: If the shutdown is permanent and employees are required to use part of their holiday entitlement, you must update contracts and consult with existing staff, as this involves amending terms and conditions.
• One-time shutdown: If employees must use their holiday allowance, provide at least double the notice equivalent to the days they are required to take before the shutdown begins.
• No holiday requirement: If employees are not required to use their holiday allowance, you can announce the shutdown or implement a policy for future permanent changes.

Blocked days

Blocked days are periods when employees cannot book holidays, such as retail staff working during Boxing Day sales. It is best practice to include these restrictions in employment contracts. Without this, employees may submit leave requests you cannot approve, which can be time-consuming to manage.

Prioritising holiday requests

There are different approaches to managing holiday requests:

• Prioritising certain employees: Some employers consider giving preference to senior staff or employees with children. While this can be practical, it may raise concerns about fairness or potential discrimination, such as age discrimination, since senior staff may tend to be older.
• First-come, first-served: This method is generally simpler to administer and rewards employees who plan ahead.

If multiple requests result in potential understaffing, consider encouraging employees to adjust their requested dates. Incentives can help, such as:

• Allowing employees to carry over unused holiday days (if not usually permitted).
• Offering discretionary holiday bonuses to encourage flexibility.

Key takeaways

Proper planning, clear communication, and fair processes are essential for managing Christmas annual leave. By setting deadlines, considering blocked days, and choosing an equitable method for approving requests, you can ensure smooth operations and satisfied employees over the festive period.