How to keep payroll smooth over the summer break

The Christmas season can bring payroll headaches, but knowing the rules will help you stay compliant.

Annual leave: Legally, employees are entitled to four weeks of paid leave each year, so set clear deadlines for leave requests to prevent last-minute staffing issues.

Holiday pay: You must pay employees for public holidays if they fall on a regular work day. Keeping employee records and rosters up to date helps ensure accurate payment.

Christmas closures: Plan ahead. You have to give employees at least 14 days’ notice before business shutdowns. Employees without enough leave must be paid at 8% of gross earnings since their employment started or their last entitlement to leave, minus any amount paid for annual leave taken in advance if that has been agreed.

Cashing up leave: If you have contractually agreed to allow this, or are otherwise happy to consent to it on a one-off basis, an employee may cash up to one week of annual leave each year. You cannot, however, pressure them into doing this.

Casual workers: Casual employees should be paid an additional 8% on top of their earnings instead of accruing leave: present this clearly on their payslips.

With proper planning, you’ll keep payroll on track so you and your team can enjoy a stress-free holiday break.