Christmas and the festive period can be a very special time for many to spend valuable time with their family, friends, and loved ones. Whilst some businesses will experience an influx of holiday requests over Christmas, others completely close during this period and need employees to book annual leave. This comprehensive guide examines the key considerations for UK employers managing Christmas leave, from legal requirements to practical implementation strategies that balance business needs with employee expectations.
With that being said, let’s delve into our top tips for navigating Christmas annual leave as an employer.
Are my employees entitled to annual leave over Christmas?
Whilst most employees will believe they are entitled to the paid statutory bank holidays over the festive period for Christmas Day, Boxing Day and New Year’s Day, it’s important to refer back to the specific terms in their contract of employment.
Following the terms of the contract of employment, it is also down to the business owner’s discretion if the business is operational or closed over the festive period.
Planning and Communication Strategies
When to communicate booking annual leave over Christmas
If your business closes at any point, such as between Christmas and New Year, you may require employees to utilise some of their annual leave entitlement to cover these dates.
ACAS states that if certain dates are required to be taken as holiday, employers should inform employees at least “at least twice as many days before as the number of days they need you to take.”
It is best practice be transparent and clear on this to give your employees as much notice as possible when asking them to utilise set annual leave days. If you can notify employees at the start of the holiday year that annual leave is required to be booked off during December, this should give employees plenty of notice to get this annual leave booked in
For example, this year certain businesses will be closed between Monday 25th December 2025 – 1st January 2026. Depending on if your business operates Monday – Friday and the terms of your employees’ contract of employment, full time employees will need to book 3 days annual leave to cover the dates 29th, 30th and 31st December 2025 outside of the UK bank holidays.
Compulsory Annual Leave Over Christmas
Many UK employers choose to implement a compulsory shutdown period over Christmas, requiring all employees to take annual leave during specific dates. Under the Working Time Regulations 1998, employers have the legal right to specify when employees must take their annual leave, provided they give adequate notice.
This approach offers several advantages for businesses. It ensures consistent workforce management during traditionally quiet periods, allows for essential maintenance or system updates to be carried out without disruption, and can actually boost employee morale by guaranteeing an extended break. However, it’s crucial to consider the diverse needs of your workforce where possible, as not all employees celebrate Christmas or may prefer to use their leave at different times of the year.
When implementing compulsory Christmas leave, ensure your employment contracts clearly state this requirement, or provide the statutory notice period of at least twice the length of the leave period you’re requiring employees to take. Clear communication and early planning are essential to avoid disputes and maintain positive employee relations during the festive season.
Implementation and Management
How to ensure employees book set annual leave dates?
If you have read our blog post on the benefits of HR systems, you will appreciate how easy and intuitive HR software’s are to effectively manage annual leave.
To ensure employees book off set annual leave dates, such as between Christmas and New Year, you can utilise the company announcements feature on a HR software such as Breathe HR. This means that all employees will be notified of an announcement to book and utilise certain annual leave dates over the festive period. Remember to set a clear date in the company announcement for when employees need to book the required annual leave by.
Alternatively, it may be easier to book off the set annual leave dates for your employees on your HR software to keep your records are consistent and up to date following the company announcement.
Managing Operational Requirements
What if I can’t allow employees to book time off over Christmas to remain operational?
If your business is in sector such as hospitality or retail that requires employees to work during busy seasonal periods, blackout holiday periods can be set over certain festive dates. This means that employees will be unable to book annual leave on the HR system during the blackout period unless approved by the business. Blackout periods are beneficial when it’s essential for your business to work at full capacity.
A Christmas blackout period is essentially a designated timeframe during which employees are restricted from taking annual leave due to business requirements. This approach is particularly common in retail, hospitality, and customer service industries where the Christmas period represents peak trading times. Implementing a blackout period helps ensure adequate staffing levels during your busiest periods, maintains service quality when customer demand is highest, and provides clarity for employees about when leave requests are unlikely to be approved.
However, it’s important to balance business needs with employee wellbeing and legal requirements. Even during blackout periods, you should still consider exceptional circumstances and ensure you’re not unreasonably refusing all leave requests. Clear communication about blackout periods should be provided well in advance, ideally at the beginning of the holiday year, and should be documented in employee handbooks or contracts where possible.
Again, providing as much notice as possible to employees of blackout holiday periods will help to mitigate disappointed employees later in the year.
Christmas Leave Frequently Asked Questions (FAQs)
When do most businesses close for Christmas?
Research indicates that around 35% of UK businesses close their doors completely between Christmas and New Year, while an additional 33% close but require employees to use annual leave for these days. The most common approach is to close from Christmas Eve or Christmas Day through to January 2nd, though this varies significantly by industry.
What days do companies give off for Christmas?
Most companies provide Christmas Day (25th December) and Boxing Day (26th December) as standard bank holidays. Many also include New Year’s Day (1st January). The specific days off depend on your contract terms and whether your employer includes bank holidays within your annual leave entitlement or provides them in addition.
Can an employer make their staff take annual leave over Christmas?
Yes, employers can legally require employees to take annual leave at specific times, including Christmas. Under the Working Time Regulations 1998, employers must provide notice of at least twice the length of the leave period they’re requiring you to take. For example, to mandate five days off, they must give at least ten days’ notice.
Do employees have to use annual leave to book off Christmas Day?
This depends entirely on your employment contract and company policy. If Christmas Day is included in your statutory annual leave entitlement, then yes, you’ll need to use a day’s leave. However, many employers provide Christmas Day as an additional paid day off beyond the statutory minimum.
What statutory bank holidays fall over the Christmas period?
The statutory bank holidays during the Christmas period are Christmas Day (25th December), Boxing Day (26th December), and New Year’s Day (1st January). In England and Wales, there are eight bank holidays per year in total, while Scotland has nine and Northern Ireland has ten.
Do you have to pay staff double for working over the Christmas period?
No, there’s no legal requirement to pay enhanced rates for working on Christmas Day or other bank holidays. Any additional pay, such as double time or time-and-a-half, is entirely at the employer’s discretion and would need to be specified in employment contracts or company policies.
How should part-time employees manage their bank holiday entitlement during Christmas?
Part-time employees are entitled to the same statutory 5.6 weeks of holiday as full-time staff, but calculated pro-rata based on their working pattern. If Christmas Day falls on a day they normally work and the workplace is closed, they may need to use annual leave for that day unless their contract specifies otherwise.
Are employees entitled to time off during Christmas?
While employees are entitled to 5.6 weeks of annual leave per year, there’s no automatic right to time off on specific dates, including Christmas. Employers can approve or decline leave requests based on business needs, though they should act reasonably and consider requests fairly.
And there we have our top tips for navigating Christmas annual leave as an employer!
If you are seeking outsourced HR support on either a time bank or retained basis, or are interested in experiencing the benefits of a HR system for yourself, please get in touch with the Norton Loxley team.
