The Christmas season can bring payroll headaches, but knowing the rules will help you stay compliant.
Annual leave: Legally, employees are entitled to four weeks of paid leave each year, so set clear deadlines for leave requests to prevent last-minute staffing issues.
Holiday pay: You must pay employees for public holidays if they fall on a regular work day. Keeping employee records and rosters up to date helps ensure accurate payment.
Christmas closures: Plan ahead. You have to give employees at least 14 days’ notice before business shutdowns. Employees without enough leave must be paid at 8% of gross earnings since their employment started or their last entitlement to leave, minus any amount paid for annual leave taken in advance if that has been agreed.
Cashing up leave: If you have contractually agreed to allow this, or are otherwise happy to consent to it on a one-off basis, an employee may cash up to one week of annual leave each year. You cannot, however, pressure them into doing this.
Casual workers: Casual employees should be paid an additional 8% on top of their earnings instead of accruing leave: present this clearly on their payslips.
With proper planning, you’ll keep payroll on track so you and your team can enjoy a stress-free holiday break.
Disclaimer: This blog has been carefully prepared, but it has been written in general terms only. The blog should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.
