Preparing for the Christmas Season: Managing Employee Leave and Overtime

Why December is tricky

December can stress-test any business. Demand spikes just as teams want time off, and managers juggle rotas, cover, and employee overtime. Here’s a practical playbook for managing employee leave and overtime lawfully and fairly, so you protect output, morale, and compliance.

• More requests for leave: School breaks, trips, and family plans all mean that people want the same dates off.
  
• Higher demand: Retail, hospitality, logistics, and customer service often need more people to help.
  
• Pressure to work extra hours: Longer trading hours and last-minute orders raise the number of hours worked, which increases legal and health risks.

Holiday entitlement: what you must get right

• Statutory minimum: Most workers are entitled to 5.6 weeks’ paid holiday a year (pro-rated for part-time). Bank holidays can be included in those 5.6 weeks if your contract says so.
• Holiday pay: If an employee regularly earns overtime, relevant overtime must be included in statutory holiday pay calculations (at least 4 weeks for most workers, and 5.6 weeks for irregular-hour and part-year workers).
• 2024 reforms: There are updated rules for irregular hours and part-year workers on entitlement and pay. Check the government’s guidance if these worker types are in your mix.
• Fair allocation
  Have a clear, written approach for peak periods: e.g., first-come-first-served within set windows, rotating priority year-to-year, or splitting popular weeks. Apply criteria consistently, document decisions, and consider reasonable adjustments where relevant.

   

Best-practice scheduling and communication

1. Publish a Christmas leave & overtime plan early. Share blackout dates (with objective reasons), request deadlines, and how you’ll prioritise clashes.
2. Use one source of truth. Keep a live rota showing leave, overtime, and on-call cover.
3. Cross-train now. Build resilience by training backups for critical roles.
4. Confirm in writing. Approve/decline leave and overtime by email, referencing the policy.
5. Protect rest and safety. Workers must not exceed the 48-hour average weekly limit unless they’ve voluntarily opted out in writing; keep records. Plan shifts so anyone working over 6 hours gets at least a 20-minute uninterrupted break.

Employee overtime: contracts, hours, and pay

• What the contract says matters. State whether overtime is voluntary or compulsory, how it’s requested/approved, and the rate (or time off in lieu).
• Pay and minimum wage: Overtime does not have to be paid at a premium rate in law, but total pay for total hours must not fall below the National Minimum Wage.
• Working time limits: Without an opt-out, average weekly hours are capped at 48 (usually over 17 weeks). Opt-outs must be voluntary and written, no pressure to sign, and you must keep records.
• Holiday pay link: Regular overtime should feed into holiday pay, as above, plan for this in budgeting and payroll runs.

Policies that prevent December disputes

Clear, accessible policies set expectations and keep decisions defensible:

• Holiday policy: Entitlement, how to request, peak-period rules, notice periods, carry-over.
• Overtime policy: Eligibility, priority order (e.g., volunteers with required skills), rates/TOIL, approval workflow.
• Working time & wellbeing: Maximum hours, breaks, fatigue management, opt-out process.
• Record-keeping: Hours worked, approvals, and risk assessments (especially for long shifts/night work).

If your policies are outdated, Herries-Smith can help you refresh or introduce them in plain English. See our guidance on employment law training for HR teams, insights on workplace investigations when issues arise, and our employment law services for hands-on support.

Practical manager tips for the run-up to Christmas

• Balance the rota. Mix experienced staff with newer hires on every shift; avoid stacking long shifts back-to-back.
• Use sign-ups first. Offer overtime to volunteers with the right skills before mandating it.
• Be transparent on “no”. When you can’t grant leave, explain the business reason and offer alternatives (partial days, swaps, or priority in January).
• Track trends. Monitor sickness spikes, late finishes, and customer wait times to guide where you truly need overtime.
• Say thanks. Recognition (and good food on late shifts) goes a long way.

Why work with Herries-Smith Solicitors

• We prevent problems. We draft and update contracts, peak-season leave rules, and overtime clauses that stand up in practice.
• We Give Good advice. We tailor our advice to fit your business’s hours, busiest times, and staffing model, whether you own a store, restaurant, warehouse, or professional services company.
• We follow the rules and help you follow them. Our team helps you stay on the right side of the law without slowing down your business by figuring out holiday pay that includes regular overtime, keeping track of opt-outs, and more.
• We Give Practical Training.  We teach managers and HR how to make fair decisions and keep good records so that Christmas goes smoothly.  Check out our training on employment law to find out how we can help.

Ready to prepare your team for Christmas?

If you’d like policy templates, a quick contract health-check, or one-to-one advice on managing employee leave and employee overtime, contact Herries-Smith Solicitors. We’ll help you protect productivity, morale, and legal compliance, so your busiest season runs smoothly.