Enforced Christmas leave to grow

The roads are quiet. And many phones are switched to message bank as more companies have closed earlier this year to use up annual leave.

Some accountants and lawyers have directed staff to take at least three weeks annual leave over Christmas as companies crack down on the so called “Christmas working holiday” whereby staff appear at work but intersperse the day with shopping, web surfing and generally taking it easy.

Peter Vitalie, who provides IR advice to VECCI’s member companies, says there are a lot more firms this year closing for three weeks. This was a trend that began last year with the GFC and has been continued this year.

He says the new national employment standards that come into effect on January 1, 2010 will make it easier for employers to direct staff to take annual leave. “Under the Howard provisions it was more difficult to direct people to take leave but now you can if the requirement is reasonable and you can document what the workload is.”

Some firms such as legal and accounting firms have stated that no one is to work for the three weeks unless they can show a full day of billable hours.

“I emailed my accountant at Ernst & Young about a matter and found out they were off for three weeks which is a bit tough when you need a matter sorted out,” one grumpy punter told SmartCompany.

Peter Anderson, head of ACCI, says accountancy firms contains managers and professionals tend to build up and stockpile annual leave and there has been a greater focus highlighting the costs and problems associated with stockpiling leave.

There is also some catch up after the long hours put on particularly by accounting firms through the GFC. “Major accountancy firms are having to work their way through very large numbers in the books carried from one year to another, which increase in dollar value year on year. As remuneration increases it is a poor management practice and I think they’re trying to set some examples to ease pressure on their liabilities.”

While cost is an issue, other companies want bums on seats that are being productive.

“Employers should sit staff down a few weeks before the holidays start and run through their workloads and if you can see they don’t have a lot to do then direct them to take holidays,” Vitalie says.

If the office is shut, then it is a very straight forward matter to direct staff to take annual leave. If they do not have the leave owing, then with their agreement, they can take unpaid leave.

“Some employers do give leave in advance and take it on good faith that the employer will be around long enough to accrue it but that is a chance you take because you can’t get it back once it is given and that employee decides to leave.”