I Wonder What Needs to be Considered When Implementing a Christmas Shutdown

When implementing a Christmas shutdown, it is important to understand the key considerations involved. With Christmas shutdowns common in many organisations, the relevant clause in the employment contract must be carefully drafted to provide clarity for both employers and employees.

This article outlines the main considerations for implementing a Christmas shutdown.

What Is a Christmas Shutdown Clause?

Workplace shutdowns over the Christmas and New Year period are common in many sectors, particularly where business activity naturally slows at this time.

A Christmas shutdown clause in an employment contract is a provision that specifies the closure of the workplace during the Christmas and New Year period. Typically, it requires employees to take annual leave during this shutdown, with the specific dates usually communicated at the start of each holiday year.

For a Christmas shutdown clause to be enforceable, it must form part of the employment contract.

Legal and Regulatory Considerations

Employers and HR professionals should be aware of key legal and regulatory considerations:

• Working Time Regulations 1998 (WTR 1998) – Under Regulation 13 of the WTR 1998, workers are entitled to a minimum of 5.6 weeks’ annual leave in each leave year. This leave must be taken within the same year unless the worker is prevented from doing so due to statutory or sick leave. Employers are permitted to determine when employees take their leave, including requiring employees to take some of their leave during a Christmas shutdown.
  
  However, when requiring employees to take annual leave on specific dates, employers normally need to give their employees notice, which is at least twice the length of the proposed leave period. The exception to this is where there is a relevant agreement in place between the employee and the employer that excludes that notice requirement. A contractual clause requiring employees to take annual leave on specific dates would qualify as a relevant agreement.
   
• Equality Act 2010 – Religion and belief are one of the protected characteristics covered by discrimination law under the Equality Act 2010. Employers should be aware that not all employees celebrate Christmas, and requiring them to use their annual leave entitlement for a Christmas shutdown may be perceived as unfair by those who do not observe the holiday. Unless an employer can justify the requirement as a proportionate means of achieving a legitimate aim, it may give rise to claims of indirect discrimination.

What to Include in a Christmas Shutdown Clause

Several elements should be included in a Christmas shutdown clause, such as:

• Dates – Whether the shutdown dates are fixed each year or set annually.
• Duration – The length of the Christmas shutdown
• Notification – Minimum notice periods and the timing of when employees will be informed.
• Annual Leave Requirements – Whether employees must use their annual leave to cover the Christmas shutdown or will be granted those days as additional paid leave.
• Insufficient Leave – What happens if employees do not have enough annual leave to cover the Christmas shutdown? This might happen when employees join the business late in the year and haven’t accrued enough annual leave to cover the shutdown period. In those cases, employers may have to pay them for the shutdown days unless there is a clause in the contract stating that the employer will close over the Christmas period.

Communicating and Implementing the Shutdown

If you are considering introducing Christmas shutdowns in your organisation, amending staff contracts would constitute a change to terms and conditions, and careful consideration is required. Click here to learn more about how to change employee contracts while minimising risk.

However, if a Christmas shutdown has been in place in your organisation for some time, the focus should be on communicating and implementing it effectively. This can be achieved by:

• Including a clear Christmas shutdown clause in employment contracts.
• Giving employees clear and timely notice, in accordance with the Working Time Regulations 1998.
• Sending reminders before the shutdown period outlining the applicable rules.
• Making effective use of the intranet, including publishing the Holidays Policy, which should align with the relevant contractual clause.

Conclusion

In conclusion, ensuring that your Christmas shutdown rules and clauses are clear and compliant will help to minimise potential disputes and facilitate a smooth seasonal closure.

Further Advice

If you have any queries on Christmas shutdown clauses or any other employment-related matters, our Peace of Mind Team is here to provide expert guidance. Our Document Audit Team can also assist in drafting relevant workplace policies.

Contact our Employment Team by emailing employment@warnergoodman.co.uk or calling 023 8071 7717.

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