What a privilege it is to be able to meet many of the wonderful people behind the scenes of our small to medium businesses in New Zealand. ...
Policies, Procedures & SafeguardsNovember 13, 2019
The Christmas and holiday season is almost upon us again, and we’re sure that many businesses are already making plans to maximise their business during this festive time.
One thing you may not have thought about is Christmas closedowns. If you’re planning to close down all or part of your business over the Christmas/New Year period, there are a few regulations that you may like to know about.
Generally, businesses are allowed to have one customary closedown a year. Customary closedowns must be 12 months apart, however with the employee’s agreement a business can agree to additional times the operations are closed.
Yes, provided that employees are given at least 14 days’ notice.
In this case an employee gets paid out as much as they have built up and, with the employer’s permission, that employee can take annual leave in advance.
Another option is for the employee to take leave without pay.
But there are also rules for employees who aren’t entitled to annual holidays.
An employee may not be entitled to annual holidays for one or more of the following reasons:
You may still closedown your business.
If the employee is paid leave on a pay-as-you-go-basis, the employer has already paid out the leave and as such, any closedown period will be unpaid.
With regards to employees who are accruing leave but are not entitled to annual holidays, they must be paid 8% of their gross earnings, from:
Employers may also choose to let the employee take annual leave in advance to top up their pay for the closedown period.
Paying out annual leave to employees who are not entitled to annual holidays for the closedown does, however, affect the employee’s anniversary date.
If you have any more questions, feel free to get in contact with Employsure on 0800 675 700