These tips on how to manage staff holidays, particularly with the Christmas season in mind, were written for Bytestart by the Department for Business, Innovation & Skills (BIS)
Christmas is fast approaching and for many small businesses, it can be a very busy time of year. On top of the surge in activity, many employees will be looking to take their last few days of holiday. Therefore, it is important for small business owners to manage staff holidays efficiently to ensure that the business isn’t affected by absences and enjoys maximum success.
Some bosses may feel that managing this and other areas of employment law can be daunting, and as a result, turn to costly external support for assistance. However, the Government offers free advice to help small businesses comply with employment legislation at Business Link. The information clearly articulates how bosses can manage their employment obligations themselves, saving them money and allowing them to concentrate on their bottom line.
As a small business owner, think about the ways in which you handle staff holiday. Outlined below are four top tips to help you manage this process yourself and save money.
Balance business and employee needs
Adopt a good balance between operating your business and encouraging staff to take their full leave entitlement. Giving staff the time off they deserve will keep them motivated and will have a positive effect on your company. Encourage employees to take time off throughout the year so there isn’t a frantic rush before the end of the year to use up holiday allocation around Christmas. It is a good idea to run a report of outstanding holiday, a couple of months before the end of the year and remind staff to book and take it. If you work in an industry that experiences seasonal peaks in activity, it may also suit you to lay out rules for when holiday can and cannot be taken or to arrange annual cover.
Holiday entitlement
Know how much holiday you can allocate staff. Almost all workers above school leaving age are entitled to at least 5.6 weeks’ paid holiday. You can count any days off for public or bank holidays towards a worker’s statutory holiday entitlement but only if you pay them for these days off. This is the minimum allocation that staff (employees, agency workers and casual workers) should be given.
There are different rules for employees working a six-day week so make sure you know your obligations, if this applies to your business.
As an employer, you must set out a worker’s paid holiday entitlement in their contract of employment. To do this, you need to have a valid written statement of employment. In some cases, there are types of worker who do not have the right to benefit from the minimum paid holiday entitlement so be aware of this.
Holiday Pay
A worker’s entitlement to paid annual leave starts on the first day of employment and is not subject to a minimum period of employment. Ensure you are up-to-date with the different ways pay can be calculated according to the type of work that is carried out. For example, the way that holiday pay is allocated differs for those working fixed hours, for those on variable hours and for shift workers.
Notice periods, restrictions and sickness
As an employer, you will need to make staff aware that if they wish to take leave, they must give you notice. Agree the notice period with workers and then set this out in writing. If there is no agreement in place, they must give notice at least twice the length of the intended leave period. It may be necessary for your business to restrict the taking of leave; this could include identifying specific periods when leave may or may not be taken, capping the amount of leave that can be taken at any one time or shutting down for certain periods, e.g. between Christmas and the New Year or for a few weeks in August. It is also important to note that a worker continues to accrue their statutory minimum holiday entitlement as normal while absent from work due to sickness.
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