Published: 28th November 2024
Area: Employment
The festive season often raises questions for employers regarding holiday pay entitlements. Under the Working Time Regulations 1998, employees in the UK are entitled to a minimum of 5.6 weeks of paid holiday per year. This statutory entitlement may include bank holidays, such as Christmas, depending on the terms set out in the employment contract.
Employment Law Christmas Round Up
During the festive season at work spirits are heightened, Christmas jumpers are out in full force and tubs of celebrations and quality street litter the counterspace. While it is a joyous and fun occasion for those who celebrate, there are still a number of things employers should be wary of to ensure a smooth sailing festive season.
Are employees entitled to enhanced pay for working on Christmas Day?
There is no statutory requirement for enhanced pay if employees are required to work on Christmas Day, meaning any additional pay or holiday premium is at the employer’s discretion. Enhanced holiday pay for Christmas work is common in many industries to acknowledge the holiday, but it is not mandatory unless specified in an employee’s contract or within the company policy.
Employers are therefore advised to review contract terms carefully. If Christmas Day is considered part of statutory holiday entitlement, this should be clearly articulated to avoid misunderstandings.
What is the policy for requiring employees to work on Christmas Day?
If an employer requires staff to work on Christmas Day, it is important to communicate this expectation clearly and in advance. Whether an employee has to work on Christmas Day may depend on the industry they work in and for many industries (such as travel and hospitality) it is a commercial or operational necessity.
As per the Working Time Regulations, employers must give notice that is at least twice the length of the holiday period being requested to work. For example, if the employer needs an employee to work on Christmas Day instead of taking leave, at least two calendar days’ notice would be required.
There are no explicit requirements about the form this notice must take and it does not need to be in writing. However, best practice often involves setting these expectations months in advance.
How does holiday pay affect part-time or seasonal workers who work overtime?
Part-time and seasonal workers with fluctuating overtime hours are entitled to holiday pay that reflects their average earnings, just as full-time employees are. If these workers have consistently and regularly worked overtime, this must be included in their holiday pay calculation using the same 52-week average.
For seasonal workers who do not work year-round, employers must calculate the holiday pay based on the actual weeks they worked. If the employee has fewer than 52 working weeks, the employer should look back only over the available weeks, ensuring that any holiday pay fairly reflects the seasonal overtime they worked.
To manage expectations, employers should clearly explain to part-time and seasonal workers how their holiday pay is calculated, especially when it includes irregular or seasonal overtime.
How should holiday pay be calculated for employees with fluctuating overtime?
For employees with variable pay, including fluctuating overtime, holiday pay must reflect an average of their earnings over the previous 52 weeks, as stipulated by the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018. This 52-week reference period helps smooth out irregularities and provides a fairer estimate of average earnings. This rule applies regardless of when the worker’s leave year starts.
Employers should update this calculation regularly to capture any changes in the employee’s work patterns, particularly before holiday-heavy periods like Christmas, when demand for overtime might fluctuate or when seasonal/temporary workers join the business.
By carefully reviewing holiday pay calculations and employment contracts, employers can ensure fair and transparent practices that support employee morale and compliance with holiday pay regulations. If you require any further assistance, then do not hesitate to contact a member of our team today.
While the holiday season brings festive cheer and a chance to celebrate, it also comes with a unique set of challenges for employers. By addressing key issues such as managing seasonal workers’ rights, holiday pay entitlements, flexible working arrangements, and employee wellbeing, employers can navigate the festive period with ease and compliance. Offering support through clear communication, fair policies, and inclusivity ensures a positive and productive holiday season for both employees and employers alike. By remaining proactive and understanding, businesses can create a workplace culture that is festive, fair, and respectful of the diverse needs of their workforce. For a large majority of businesses, particularly those in retail, the holiday season may mean acquiring additional support through seasonal workers. We explore the rights seasonal workers have and address other key questions on the topic. Flexible working, especially during Christmas, can help balance business demands with personal challenges. We explore strategies for managing flexible working requests and policies. Flexible working, especially during Christmas, can help balance business demands with personal challenges. We explore strategies for managing flexible working requests and policies. At this time of year, Christmas bonuses are a key topic of conversation within employment. We explore the types of bonuses and tax implications for your business to consider. Managing employee absences, particularly over the holidays, can make things difficult. We discuss what can be done regarding non-genuine absences and how to balance this with business needs. To avoid grievances over holiday rotas, employers should set clear expectations with staff surrounding holiday cover, time off around the holidays and any additional over-time needed to support the business. However, if a grievance does arise, we set out the steps to consider to ensure it is handled with care. Supporting employee wellbeing during the holiday season is crucial, as this time can bring increased stress, especially for working parents juggling childcare and work responsibilities. We highlight the ways employers can effectively support their employees to foster a positive and productive workplace culture. We explore ways to maintain an inclusive culture at Christmas, focusing on respecting diverse religious beliefs and promoting a supportive and cohesive workplace environment. While the buzz around Christmas heightens, there is no denying that the winter months can make getting to work difficult for those who need to travel. We share the key considerations for employers during this time. Over the holiday season, many businesses see an increase in remote work. With employees logging in from various locations and devices, we share the key steps to protect your business’s security during this season. Over the holiday season employees are increasingly eager to spend time with loved ones and often travel to make the most of the festive break. We share how employers can balance this with the business needs effectively to help the business run smoothly and enhance employee morale. The Christmas period can be an excellent time for workplaces to relax and employees to have fun. However, with social events like office parties, the blurring of personal and professional can present some unique HR problems. We provide guidance to help ensure your office to get together runs smoothy.
This Christmas we are covering a multitude of topics to help you navigate the holidays with ease.
Day 1
Seasonal workers rights
Day 2
Flexible working rights
Day 3
Christmas holiday pay
Day 4
Christmas bonuses and employer gift giving
Day 5
Managing employee absence over the holidays
Day 6
Handling grievances over holiday rotas
Day 7
Supporting wellbeing during the holidays
Day 8
Creating an inclusive workplace culture during the holiday season
Day 9
Can you take the day off when it’s too cold?
Day 10
Remote working security to protect your business over the holidays
Day 11
Travelling over the holiday season
Day 12
Office Christmas party guidance
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Amy is a Solicitor within the firm’s Employment Team specialising in advising education clients including schools, academies, higher education institutions and universities.
Amy specialises in employment law and supports clients on a variety of non-contentious matters including reviewing and drafting policies, procedures, employment contracts and settlement agreements. Amy also provides support on all elements relating to the defence of Employment Tribunal claims.
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