The festive period should be a chance for employees to rest and spend time with the people important to them. For SMEs, however, December can also bring a concentrated rush of leave requests, year-end deadlines and pressure to maintain service levels with a smaller team.
The answer is not to make Christmas leave difficult. It is to set expectations early, apply the same process to everyone and plan cover before the busiest days arrive.
Start with the legal and contractual position
Most workers are entitled to at least 5.6 weeks’ paid holiday a year. For someone working five days a week, that is 28 days, and bank holidays can be included within that entitlement if the contract says so. The Government’s holiday entitlement guidance is a useful starting point when reviewing policy wording.
Bank holidays are not automatically additional paid days off. Businesses should be clear about whether Christmas Day, Boxing Day and New Year’s Day are included in annual leave, treated as extra paid leave, or worked as normal.
Employers can set rules around when annual leave is taken, including an annual Christmas shutdown, but should give proper notice. As a general rule, employers requiring staff to take leave need to give at least twice as many calendar days’ notice as the leave they require. Contracts can set different notice arrangements, so it is sensible to check the wording before communicating a closure.
Where an employee requests leave, they should normally give notice at least twice the length of the requested holiday plus one day. Employers can refuse or cancel approved holiday for genuine business reasons, but must give adequate notice. ACAS explains the rules around booking, refusing and cancelling holiday.
Publish the festive leave process early
A leave policy should not appear in the final weeks of November. By late summer or early autumn, tell staff when festive leave requests will open, the deadline for submitting them and when decisions will be confirmed.
This gives managers time to see the full picture across every team, identify dates where cover will be tight and arrange rotas without rushed decisions. It also helps employees make plans with confidence.
A simple policy could include:
- the deadline for Christmas and New Year leave requests;
- minimum cover requirements for each team or function;
- any fixed closure dates;
- how competing requests will be assessed; and
- when employees can expect a final answer.
Keep the policy accessible in the staff handbook or HR system, rather than relying on a one-off email that may be missed.
Choose a fair way to resolve clashes
There is no single approach that suits every business, but consistency matters. First come, first served can be simple, although it may favour the people quickest to submit requests. A rota system is often more balanced for businesses that need Christmas cover every year.
For example, employees who worked over Christmas or New Year last year could receive priority for the equivalent period this year. Another option is to rotate the most sought-after dates across the team, while allowing managers to account for essential skills and project commitments.
When two people request the same day, use objective criteria and keep a brief record of the decision. Consider previous festive cover, the order requests were submitted, operational needs and whether there is anyone else trained to cover the role. Personal circumstances can be considered sensitively, but avoid informal arrangements that appear inconsistent or unfair.
Plan cover, not just absence
An approved leave calendar is only useful when it is linked to a practical cover plan. Review upcoming client deliverables, customer-support volumes, payroll dates, stock commitments and supplier deadlines. Then decide what genuinely needs to be covered and what can wait until January.
Shared calendars make this much easier. Employees can see who is away before submitting a request, and managers can spot gaps early. For small teams, cross-training one or two colleagues on essential processes can prevent a single absence from becoming a bottleneck.
Digital systems also help businesses maintain accurate holiday records. From April 2026, employers must keep annual-leave and holiday-pay records for at least six years, making a clear process even more valuable.
Keep staff who are working engaged
Some people will need to work during the festive period, particularly in customer service, logistics, hospitality and businesses with year-end reporting deadlines. Their contribution should be recognised.
Depending on the contract and business model, this might mean offering time off in lieu, enhanced pay, an earlier finish on quieter days or more flexibility in January. Smaller gestures can matter too: festive food, a relaxed dress code or a genuine thank-you from senior staff can make a demanding shift feel appreciated.
The most important thing is that colleagues understand why cover is needed and how decisions have been made. Open communication reduces resentment far more effectively than trying to solve every conflict at the last minute.
A well-run festive leave process protects both people and performance. Plan early, set clear rules and apply them fairly, and your business can enter the new year with customers supported and staff feeling respected.
