Christmas Special: Employment law tips for the holiday season
As the festive season approaches, it’s the perfect time for employers to start planning, not just for a well-earned break, but for the unique workplace issues that can arise at this time of year. From managing holiday leave, to hosting Christmas parties, and handling staff conduct, a little forward-thinking can prevent issues from spilling over into the New Year.
Annual leave
Leave management is often the first challenge in December. With many employees looking to take time off, it is important to check leave balances early and encourage staff to submit requests in advance. If an employee does not have enough accrued leave, you may choose to approve annual leave in advance, but this is entirely at your discretion and should be documented in writing. Alternatively, unpaid leave can be granted if both parties agree in writing. While you are entitled to refuse leave based on operational needs, those decisions must be made fairly, consistently, and in line with any applicable policies.
If your workplace has a closedown period, you can require employees (who have become entitled to annual leave) to take that leave during the closedown period, in accordance with the Holidays Act 2003. If an employee is not yet entitled to annual leave, they can still be required to stop work during a closedown period. In either case, at least 14 days’ notice must be given.
Christmas parties
End-of-year celebrations are a great way to reward and thank staff, but it is crucial to remember that Christmas parties are workplace events. That means your usual workplace policies, including those covering conduct, harassment, discrimination and health and safety, still apply. Before the event, it is helpful to send a short reminder to staff reinforcing that while the celebration is a chance to unwind, professional standards still apply. Planning is also key. Ensure there is enough food, water and non-alcoholic drinks, and appoint a few managers to discreetly keep an eye on things. Organising transport options or encouraging ride shares should be considered to avoid employees drink-driving.
Misconduct at a work event
When it comes to misconduct at a work event, it is important to act appropriately. If something goes wrong during the Christmas work event, we recommend taking steps to de-escalate the situation, such as discretely removing someone if necessary, and following up promptly the day after. Once staff return to work, any issues should be handled through your standard disciplinary or grievance procedures, ensuring procedural fairness is upheld. This means conducting a proper investigation, taking statements where needed, and documenting matters thoroughly. It is also worth noting that employer responsibility can extend to conduct at unofficial “after parties”, particularly if the behaviour affects the workplace or involves colleagues.
Support
The holidays can be a difficult time for some employees. Consider what support systems are in place, such as access to an Employee Assistance Program, and be flexible with leave requests where possible. Checking in on employees who may be under stress, experiencing burnout, or feeling isolated can go a long way to maintaining a healthy and inclusive workplace culture during this period.
For employers wanting a deeper dive into the practicalities of running a trouble-free event, Paul Jarvie has published a helpful piece titled How to Hold a Safe Christmas Party. It offers additional practical pointers for how to ensure safety and compliance at Christmas functions.
Final thoughts
Ultimately, a little proactive management now can help you avoid difficult situations in the New Year. If your business needs help updating leave policies, drafting a Christmas party conduct reminder, or managing staffing challenges over the break, our employment law team is available to assist. Please do not hesitate to contact Jaesen Sumner or Eloise Sharpe for more information.
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Frequently Asked Questions
Can an employer legally cancel your approved leave?
In New Zealand, once annual leave has been approved by the employer, cancelling it is not something that should be done lightly. While there is no express prohibition under the Holidays Act 2003, withdrawing previously approved leave may expose an employer to legal risk if not handled fairly and reasonably. Employers should consult with the employee and seek agreement wherever possible, documenting the change in writing. Operational needs may justify changes in exceptional cases, but consistency and fairness are key.
What is the NZ employment law regarding annual leave pay?
Under the Holidays Act 2003, employees are entitled to be paid for annual leave at the higher of their ordinary weekly pay or their average weekly earnings over the previous 12 months. This ensures that employees are not financially disadvantaged while on leave. Annual leave pay must be paid before the employee goes on leave, unless otherwise agreed.
Do employers have to approve annual leave requests over Christmas?
No. Employers are not legally required to approve all leave requests. Leave can be declined if there are valid operational reasons, provided decisions are made fairly and consistently, and in accordance with the company’s leave policy. That said, employers are encouraged to communicate early and plan ahead with staff to balance business needs with employee wellbeing.