Getting your business ready for the end of the year

As the end of 2024 draws ever closer, whether it’s planning when to start winding down for an annual shutdown or gearing up for a busy season ahead, there’s a lot to think about. Let’s explore some of the HR issues that employers might face and practical tips on dealing with them.

Using atypical workers to fill short-term staffing needs:

Atypical workers can be a valuable tool in managing seasonal increases to workloads. “Atypical workers” is a broad term that covers those who work for an employer on a pattern that does not fit the traditional model of working full-time, for a single employer, under an indefinite contract. Casual and fixed-term workers are two common types of atypical working.

With fixed-term contracts, the employment is for a fixed period with a defined end date. These can be particularly useful for employers who know how long they are going to need additional staff for, such as where they need staff for a festive pop-up shop that has a set end date. Those working under these contracts would be classed as employees and therefore will have full employment rights.

Many employers with seasonal commitments or fluctuating workloads will benefit from zero-hours contracts. As opposed to traditional employment contracts, employers have no obligation to offer work if none is available and the individuals themselves are not guaranteed any pay as a result. In the case of casual workers, they are not obliged to accept any work that is offered, but employees will be required to accept it as long as it is offered during the times and days agreed in advance. Whilst this offers maximum flexibility, this could create issues where an employer needs consistency in its workforce.

Holiday bookings:

Under the Working Time Regulations 1998, unless specific exceptions apply, such as sickness absence or family-related leave, annual leave must be taken in the year in which it is accrued. This means that employers are able to operate a “use it or lose it” system when it comes to annual leave from one year to the next, as long as they:

•           recognise a worker’s right to annual leave

•           give the worker a reasonable opportunity to take the leave they’re entitled to

•           inform the worker that any leave not taken by the end of the leave year, which cannot be carried forward, will be lost.

(As per Regulation 13 of the Working Time Regulations 1998.)

When an employer operates a January–December holiday year, and employees have excessive holiday left to take before the end of the year, this can create issues in the workplace around the lack of time to take all the annual leave that remains.

Check out BrAInbox for instant answers to questions like:

How long can a fixed term contract be?

Can I pro-rate annual leave for casual workers?

Can I make staff use their holidays when I close the business for Christmas?

For employers in this situation, now is the time to remind employees and workers to take their annual leave and the consequences should they fail to do so. This may need careful managing; letting them know what days are available to book will help them to plan their time off and manage their expectations should they try to book a day where too many people are already off. Making them aware of the rules on the number of people that can be off an annual leave on given days is also recommended.

Where this has been a problem, in future years, it’s a good idea to introduce a policy indicating when people may take holidays, how they should apply and how applications will be prioritised if too many employees want the same time off. Making the rules explicitly clear will ensure employees understand the potential consequences of leaving it too late to book their holidays. Regular reminders throughout the year of the need to use up all holiday entitlement should also be used to help minimise the risk of too many people having too much holiday remaining by the end of the year.

Part-year and irregular-hours workers:

For employers of these types of workers, there’s another issue on the horizon — rolled-up holiday pay. For holiday years starting on or after April 2024, employers are now able to introduce rolled-up holiday pay for part-year and irregular hours workers. January may be the first time that some employers have the opportunity to introduce this. If planning to do so, it’s important to consider the contracts into which this will be inserted. When it comes to employees, a period of consultation will be needed in order to get their agreement. Planning this in advance and leaving enough time for the negotiations is going to be important to ensure all employee questions are answered and to increase the likelihood of getting agreement.

Whether it’s taking on new employees and workers or managing those already on the books, time is ticking away for making sure your business is set for the end of the year. Our HR Advisory team are here to support you and any queries you may have as you prepare for the end of the year.