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Does your business have an ANNUAL CLOSEDOWN?

It’s an opportune time to become familiar with the process for annual closedowns with Christmas just around the corner.


If your business closes during the Christmas break (or any another annual closedown period) and you require your employees to take annual holidays (or take unpaid time off) during that period, this is called an ‘annual closedown'.


Your business may have an annual closedown once a year and for that to occur all you need to do is provide your employees 14 days’ notice.


If an employee is entitled to annual holidays, they must stop work (if they get 14 days’ notice) and take as much of their annual holidays balance as is needed to cover the closedown period. Payment for these annual holidays is calculated in the usual way that payment for annual holidays is calculated.


If the employee doesn’t have enough annual holidays to cover the closedown period, then:

  • in addition to taking all of the annual holidays entitlement they currently do have, and you agree, they can also take some annual holidays in advance or

  • they may have to take some leave without pay

There are some other special provisions for employees who may not be entitled to annual holidays at the start of the annual closedown. To find out more contact…..


The HR Guy

M: 021 543 510

E: dylan@thehrguy.nz

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