Closing down for the holidays? Here’s what you need to know…

A close down period is when an employer closes business operations for a certain length of time, often doing so during off-peak times of the year.

Many businesses tend to do this over the Christmas break and many employees are happy to take this time to enjoy summer holidays with family.  But there are some rules that employers need to be aware of before shutting up shop:

  • There may only be one closedown period per year, although employers can shut down different business sectors at different times of the year
  • Employers must give staff at least 14 days’ notice of the closedown period
  • Employers can require staff to use their annual holidays over this time.  Public Holidays are still recognised during the closedown period and are treated as such

There are many benefits for employers during closedown periods, including less disruption to productivity and a reduction in labour and operating costs.  If you are planning on closing down over Christmas, be sure to let your clients know.  It’s not only courteous but is a good way to touch base and wish them a Merry Christmas.