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Closing down for the holidays?

Here’s what you need to know

A closedown 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.

Public Holidays

It's that time of the year again when we are thinking about payrolls over the Christmas / New Year period. The public holidays this year are Thursday 25 December – Christmas Day, Friday 26 December – Boxing Day, New Year's Day and the day after – Thursday 1 and Friday 2 January 2014.

Employees are entitled to a paid day off on a public holiday if it would 'otherwise be a working day'. Public holidays are paid in various ways depending on whether or not employees' are required to work. For further information, please check out the Ministry of Business Innovation & Employment (MBIE) website by clicking here.


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