SKY UPDATE | HOLIDAY SEASON EMPLOYMENT ISSUES

01 November 2024

As the Christmas and New Year period approaches, small to medium-sized enterprise (SME) owners often face unique staffing challenges.

From managing annual leave requests to ensuring fair workloads and compliance with holiday pay requirements, it’s essential to be prepared to navigate the complexities of this busy time of year.

Here’s a look at some common employment issues and practical tips to help SME owners manage them smoothly.

Managing Leave Requests

The holiday season is prime time for annual leave requests, and striking a balance between operational needs and staff preferences can be tricky.

Firstly, it is important to understand that annual leave may only be taken when agreed between the employee and the employer.

An employer may refuse a request for annual leave, provided that they are acting reasonably. For example, when there are sound business reasons for why the leave cannot be accommodated at that time.

We recommend that SMEs consult the NES and any applicable Awards to develop an annual leave policy.

A good policy should clearly set-out the process for applying for leave, including relevant notice periods/timelines, and how requests will be decided.

As part of this, the policy should include details on seasonal factors such as peak times and annual shutdown periods.

A good annual leave policy will set clear expectations and make it easier to manage annual leave requests within the business.

Holiday Pay Compliance

Understanding public holiday entitlements is critical to avoid disputes that can lead to issues with the Fair Work Ombudsman and reputational damage.

Employers are encouraged to consult the Fair Works Ombudsman’s pay guides and the Pay And Conditions Tool (PACT) to ensure that staff pay and conditions through the holiday period remain compliant.

Planning for a Shutdown

If you are planning to close your business for a period during the holiday season, it is important to understand the rules and plan accordingly.

First and foremost, you should ascertain if you are permitted to direct employees to take annual leave during a shutdown.

If such a direction is not permitted, you may still request that employees take annual leave due that period. However, if they refuse you will be required to pay their ordinary pay during the shutdown period.

There are also rules concerning the handling of staff who have insufficient accrued leave to cover the shutdown period.

Once there is an understanding of the requirements, information should be communicated to employees well in advance to ensure that there is plenty of time to get organised and make suitable arrangements.

Seasonal Workloads and Temporary Staff

Many SMEs, particularly those in retail and hospitality, experience increased demand over the holiday season.

If you will require temporary staff to meet a seasonal spike in demand, it is important to plan ahead.

Firstly, you should seek to understand your options. For example, will it work better to hire directly or through an agency?

Secondly, you need to get in sufficiently early to ensure that you can find and train the additional staff that are needed.

You will also need to be across the applicable pay and conditions and set clear expectations around the period of engagement.

Lastly, it is important to communicate with regular employees to ensure that they know what to expect and how the presence of the temporary staff may affect their work.