With the festive season in full swing, the calendar fills with Christmas and New Year celebrations, work parties, family commitments, and for employers, the potential for some practical challenges. We explore some of the most common HR challenges that arise during the festive season and share strategies to help mitigate risk whilst keeping the spirit of the season.
Annual Leave
The rush for Christmas annual leave can often cause tension among staff, leaving employers to manage conflicting requests.
For some employers, this is not a major issue. Many businesses see activity slow significantly at Christmas and are therefore happy to allow more staff than normal to have time off during this quieter period. However; Christmas is the busiest time of year for sectors such as hospitality and retail, with workloads for health and social care sectors also remaining high. Management of holidays can therefore be a thorny challenge for employers in these sectors.
A clear and transparent holiday policy for busy periods can help manage the influx of requests. This could take the form of a written policy within a staff handbook or similar, or could be communicated specifically at times of peak demand. Any policy/procedure implemented should outline business requirements and how requests will be prioritised, so staff have clear expectations of the process.
Care should be taken when establishing the system of priority. Common approaches include “first come, first served”, or requiring requests by a certain cut-off date to allow discussions and agreement. Prioritising requests from employees with strong religious beliefs or young children risks indirect discrimination claims from staff who do not share these characteristics.
At the other end of the spectrum, businesses in some sectors (construction being a notable example) often shut down entirely during festive periods. Staff therefore may be contractually required to take annual leave during this period, whether they wish to or not. While this could lead to indirect discrimination arguments from those who do not celebrate Christmas, a total industry shutdown would in all likelihood be relevant to a proportionality defence.
Employers should keep in mind that any refusal of annual leave requests must comply with a double notice requirement, meaning employers must give at least twice as much notice of refusal as the length of the requested leave. Given the possibility of staff seeking extended periods of leave at Christmas, it is recommended for employers to address Christmas leave in good time.
Family Engagements During Working Hours
School nativities, nursery singalongs and other family Christmas events often appear in many employees’ diaries at this time of year. Whilst these activities may only require an hour or two of leave, it means employers are possibly faced with not only an increase in formal holiday requests, but also an increase in short ad hoc requests for time off.
Employees do not have a mandatory entitlement to this leave, although many employers do try to accommodate this where possible. Consistency is key in this respect. Some organisations may allow staff informal time off, others require staff to work the time back and some will require employees to use holidays. There is no single “right” approach but adopting a clear and consistent approach among all staff will help avoid perceptions of unfair treatment and potentially disgruntled employees.
Christmas Party Preparations
The work Christmas party is often a highlight of the calendar for staff, but HR teams will know the planning required to ensure an inclusive and enjoyable event.
There are variety of factors for employers to consider from both a legal and general enjoyment perspective – including ensuring dietary needs are appropriately met for all staff, deciding on the provision of alcohol (and how it is to be accessed if under 18s will be in attendance), ensuring venue accessibility, clearly communicating dress code requirements and ensuring that all staff are afforded the opportunity to attend if they wish to do so – including those who are absent on family leave and/or who do not celebrate Christmas.
It is almost certain that the work party will be considered an extension of the workplace insofar as vicarious liability is concerned. Employers would be well advised to ensure that staff are reminded of the employer’s policy on appropriate workplace behaviour in advance of the event. There should be clear expectations set as to work attendance on the day following the party.
Proactive Duty to Prevent Sexual Harassment
Since October 2024, employers have a proactive duty to take reasonable steps to prevent sexual harassment in the workplace. Reminders prior to work parties should therefore include clear communication that any form of sexual harassment will not be tolerated.
The types of steps that are reasonable may vary from organisation to organisation, depending on the size of the business and the resources available to it.
Steps that would potentially be reasonable for many employers include:
- Carrying out a sexual harassment risk assessment;
- Preparing a policy on sexual harassment at work;
- Setting clear standards of behaviour at work (and work social events);
- Implementing a dedicated means by which incidents can be reported;
- Having a system in place where staff can get help quickly if required (for example, silent alarms or panic alarms);
- Informing third parties such as customers and suppliers of the organisation’s policies on the issue;
- Staff training should be rolled out for all staff, with additional training for managers so that they are fully aware of any additional responsibilities that they may have internally; and
- Policies and procedures should be kept under regular review to ensure their effectiveness.
Changes to this area are expected in due course under the Employment Rights Bill. In particular; it is expected that there will be an “all reasonable steps” duty to prevent any type of harassment, as well as possible liability on the part of an employer for harassment of staff that is carried out by third parties.
The Consequences of Festive Misconduct
While the Christmas season offers opportunities for staff to celebrate at social events, it can also lead to potential instances of misconduct at work. Common examples include “pulling a sickie” after leave refusal or the Christmas party, inappropriate conduct at work social events or being unfit for work through alcohol or other substances.
Employers should avoid snap decisions in response to allegations of misconduct and instead conduct a proper investigation in relation to allegations raised. Depending on the severity of allegations, suspension of an employee may be appropriate. Investigations around the festive period may take longer than usual due to staff absences, but the investigation should proceed as quickly as is reasonably possible in the circumstances.
If the dismissal of an employee is the ultimate outcome of a disciplinary process, then employees with over 2 years’ service will be able to raise an unfair dismissal claim. Depending on the nature of the incident in question, a claim may be possible from those with shorter service. Current proposals under the Employment Rights Bill plan to reduce the period of qualifying service for unfair dismissal to 6 months for dismissals that take effect from 1 January 2027 – just in time for next Christmas.
The festive season should be a time of celebration, not complication. By planning ahead, applying clear and consistent policies, and keeping inclusivity and compliance at the forefront, employers can minimise risk while ensuring staff feel valued and supported. A proactive approach now will help everyone enjoy the Christmas period – and start the new year on the right note.
