1) Holiday Pay, Overtime Compliance and Annual Leave
During the holiday season, businesses may face increased demand, leading to extended hours and additional shifts. It’s essential to comply with the Working Time Regulations 1998 and National Minimum Wage and National Living Wage laws. While there’s no statutory requirement for employers to pay extra for work on Christmas Day or bank holidays, many businesses offer it as a perk and any such agreement should be specified in employment contracts. Overtime pay must comply with minimum wage laws and any hours worked beyond 48 per week must be optional unless the employee has opted out. With many employees looking to take time off around Christmas, managing annual leave requests can be challenging. The law entitles employees to 5.6 weeks of paid holiday per year, which can create scheduling conflicts if multiple employees request the same days off. Implementing a fair and transparent policy for holiday approval helps avoid disputes and ensures that staffing levels are maintained. It is also worth bearing in mind that that in terms of holiday pay, any overtime worked on a regular basis in the 12 weeks preceding that holiday time needs to be included in the calculation of the holiday pay.
2) Employment Allocation of Tips Act 2023
Those working over Christmas may find customers / clients are more generous due to the festive season in industries where tipping is commonplace. The Employment (Allocation of Tips) Act 2023 is recent legislation governing how tips, gratuities and service charges are handled in the workplace. Essentially, it’s now illegal for the employer to keep tips or service charges, and 100% of them must go to employees. Written records have to be kept showing who received what, at every establishment/venue, and it includes all tips, gratuities and service charges paid in cash, card or alternative payment methods like cheque, gift vouchers etc.
3) Being inclusive this Festive Season
It’s a common misconception, fuelled by social media, that it’s inappropriate to wish people Happy Christmas. This is not true, and it’s perfectly acceptable to wish someone Happy Christmas – or Happy Hanukkah or Happy Bodhi Day. Employers don’t need to avoid celebrating Christmas, but should also make a conscious effort to mark other festivals too, especially in workplaces with a diverse range of religions.
4) Mental health at Christmas
Although it’s often described as “The Most Wonderful Time of the Year”, Christmas is not a happy holiday season for everyone and can unfortunately be the most unhappy, or loneliest, time of the year. With that in mind, employers can remind employees of services which can help them with mental health during this time including EAP or – if the company has them – their mental health first aiders.
5) Seasonal Employment Contracts and Misclassification
Many businesses hire temporary or seasonal staff to cope with the holiday rush. It’s essential to clearly define the terms of these roles to avoid legal problems. Temporary and seasonal workers are entitled to many of the same rights as permanent employees, including minimum wage, statutory sick pay and holiday pay. Misclassification issues are governed under UK employment law, which closely examines the nature of a worker’s relationship with the employer to determine whether they are an “employee,” “worker,” or “self-employed.” Misclassification can lead to HMRC penalties and claims for backdated pay or benefits.
We recommend that employers use a genuine zero hours worker agreement, and not an employment contract, if they are hiring seasonal workers, and ensure that holiday pay owed is paid at the end of every assignment of work.
6) Alcohol and Office Party Policies
Office Christmas parties are popular but can bring legal risks, especially where alcohol is involved. Employers can be held liable for incidents that occur at work-sponsored events, including sexual harassment, harassment or misconduct. For the first of those, there is now a legal requirement for employers to implement reasonable steps to prevent employees experiencing sexual harassment from third parties during the course of employment – and Christmas parties are an extension of the workplace, so could fall under this banner. To manage these risks, businesses should have a clear code of conduct, setting expectations for behaviour and ensuring all staff understand the policy. Offering non-alcoholic options and providing safe transport home can also help mitigate risks.
Anyone experiencing harassment in any form, including at the Christmas party, should report this to their employer as soon as reasonably possible. It would also be wise to remind employees that it is a criminal offence to drive under the influence or alcohol, or drugs. Anyone caught doing so not only could land themselves with a criminal conviction but also face disciplinary sanctions, up to and including dismissal.
7) Health and Safety Obligations
The holiday season can increase workplace risks due to high foot traffic, extended hours and often colder, hazardous weather conditions. The Health and Safety at Work Act 1974 requires businesses to ensure a safe working environment, especially during high-demand periods. For instance, retail stores need to manage crowd safety during sales events and businesses should take additional measures to mitigate risks of slips and falls due to winter weather. The Management of Health and Safety at Work Regulations 1999 requires employers to conduct risk assessments and provide adequate training to staff, which becomes especially important during the busy period leading up to Christmas.
8) Adverse Weather and Employee Attendance
Winter weather can lead to disruptions like snow, ice and public transport delays, affecting employee attendance and punctuality. Businesses should consider having a clear adverse weather policy, which outlines expectations for attendance, remote work options and pay for employees unable to get to work. Employers have a duty of care to employees’ health and safety, including whether it is safe for them to travel especially considering local weather warnings. Employers should also be cautious of penalising employees unreasonably for weather-related absences, as it can affect morale and lead to disputes. Solutions in times of adverse weather can include flexible start and finish times, an option to work from home if the role permits it, taking the day as annual leave (if there is annual leave to use) or take unpaid leave. For those with children whose schools may close due to adverse weather, unpaid emergency dependant leave can be considered in line with company policy. Where employees are prevented from working due to adverse weather, it is advisable to check contracts for any clauses pertaining to periods of lay-off, or short time working. Failing this however, if the workplace chooses to close, and the employee cannot work from home (and if it’s a normal working day) they will usually be entitled to their missed wage for their missed working time. However, it is important to refer to their contract for further clarification on this point.
9) Data Privacy and Cybersecurity in E-Commerce
The Christmas season is a peak time for online shopping, which increases the risk of cyber-attacks and data breaches for businesses with an online presence. Specific risks may include phishing links, misspelt URLs or fake log-in pages.
Businesses must adhere to the Data Protection Act 2018 and UK GDPR requirements to protect customer data. Implementing robust cybersecurity measures, like encryption and secure payment systems, is essential to avoid fines and maintain customer trust. Seasonal sales, which drive heavy traffic, can also strain systems, so businesses should ensure their IT infrastructure can handle increased activity.
Steps should also be taken to remind employees that they should not be using work devices for personal use.
10) Advertising and Promotions Compliance
Christmas is a peak time for marketing promotions, discounts and special offers. However, consumer protection laws regulate advertising practices, requiring that all promotional materials be truthful, non-deceptive and compliant with rules regarding pricing and discounts. UK businesses must adhere to advertising rules set out by the Consumer Protection from Unfair Trading Regulations 2008. These rules prohibit misleading advertising, such as false claims about discounts or limited availability. The Advertising Standards Authority (ASA) monitors promotions and has specific guidance for seasonal marketing, ensuring that ads are honest, not misleading and don’t pressure consumers into hurried decisions.
11) Intellectual Property (IP) Issues in Holiday Branding
During Christmas, businesses often release seasonal branding, including holiday-themed logos, packaging and advertisements. It’s crucial to ensure that these materials don’t infringe existing trade marks, designs or material that has the benefit of copyright protection as issues of this nature could lead to an IP dispute. Conversely, businesses may want to protect their own holiday-themed products or branding from unauthorised use by competitors. Certain IP rights are capable of registration with the UK Intellectual Property Office (UKIPO). It’s worth taking advice to see if your seasonal branding assets could be protected.
Managing these issues carefully can help you have a smooth and legally compliant holiday season!