December Shutdown 2026: Annual Leave, Public Holidays and Bonuses

Estimated reading time: 7 minutes

Many businesses close over the festive season. This guide covers whether you can require staff to take annual leave during a December shutdown, what to do when an employee doesn’t have enough leave, how the 2026/27 public holidays affect leave and pay, and whether a year-end bonus is due.

In short: Yes, you can generally require employees to take annual leave during a December shutdown. Under the Basic Conditions of Employment Act (BCEA), leave is taken when you and the employee agree, and if you can’t agree, you may decide the timing. Public holidays that fall in the shutdown are not leave days, and a bonus is only owed if a contract, agreement or established practice says so.

Can you make employees take annual leave during a shutdown?

Generally, yes. Section 20(10) of the BCEA says annual leave must be taken:

• in line with an agreement between you and the employee, or
• if there’s no agreement, at a time you determine in accordance with section 20.

So an agreement isn’t strictly required. But the smoothest route is to put the annual shutdown in the contract or leave policy, then announce this year’s dates early, in writing.

There are limits. You may not require or permit an employee to take annual leave during:

• other BCEA leave, such as sick leave or maternity leave (s20(5)(a))
• a notice period (s20(5)(b))

You also may not let an employee work for you while on annual leave (s20(9)).

If a bargaining council agreement or sectoral determination covers your business, check it first. It may set its own shutdown or leave rules. The BCEA, including its leave and public holiday rules, doesn’t apply to employees who work fewer than 24 hours a month for you (s6(1)(c)).

For the full rules, see our employer’s guide to annual leave.

Planning a December shutdown and not sure where your staff stand? Speak to a SEESA Specialist.

What if an employee doesn’t have enough leave?

This is the most common shutdown problem, especially with new starters. You have three main options:

• Unpaid leave. You can only treat shutdown days as unpaid if the employee agrees, in the contract, a leave policy or in writing. If an employee is willing to work and you close, deducting pay without their agreement may be unlawful (s34). Take advice first.
• Leave in advance. The BCEA doesn’t deal with “negative leave”. If you allow it, agree in writing how it will be recovered. Under section 34(1), you may only deduct money from pay with the employee’s written agreement to a specified debt, or where a law, collective agreement, court order or arbitration award requires or permits it. Without that, you may not be able to recover advanced leave from final pay if the employee resigns.
• Another agreement, such as working some shutdown days. Put it in writing and apply it consistently.

Also avoid large balances: you must grant annual leave within six months after the leave cycle ends (s20(4)), and leave not taken by then may be forfeited in some circumstances. Our post on forfeiture of annual leave explains how this works.

Which public holidays fall over December–January 2026/27?

Date	Public holiday	Day
16 December 2026	Day of Reconciliation	Wednesday
25 December 2026	Christmas Day	Friday
26 December 2026	Day of Goodwill	Saturday
1 January 2027	New Year’s Day	Friday

Under section 2(1) of the Public Holidays Act, when a public holiday falls on a Sunday, the following Monday is also a public holiday. None of these falls on a Sunday this season. The Day of Goodwill is a Saturday, and there’s no substitute day for a Saturday holiday, so Monday 28 December is an ordinary working day.

Read more in our post on what happens when a public holiday falls on a Sunday.

How do you pay public holidays during a shutdown or annual leave?

A public holiday isn’t an annual leave day. If one falls during annual leave on a day the employee would ordinarily have worked, you must give an extra day of paid leave (BCEA s20(8)). So don’t deduct public holidays from leave balances.

Example. Lerato works Monday to Friday. Your shutdown runs from Wednesday 16 December 2026 to Friday 1 January 2027. That’s 13 weekdays, but three of them (16 December, 25 December and 1 January) are public holidays on her ordinary working days. So you deduct 10 days of annual leave, not 13. The Saturday Day of Goodwill isn’t one of her working days, so it doesn’t affect her balance.

Pay for the holiday itself. If a public holiday falls on an ordinary working day and the employee doesn’t work, pay at least their ordinary wage for that day (s18(2)(a)), on the usual pay day (s18(4)).

Where shutdown days are unpaid because leave has run out, the safer approach is to pay public holidays that fall on the employee’s ordinary working days (s18(2)(a)). The BCEA makes no exception for unpaid shutdown periods.

Can employees work on a public holiday?

Only by agreement (s18(1)). The agreement can be in the contract or separate, but put it in writing. You can also agree to exchange a public holiday for another day (Public Holidays Act, s2(2)).

Situation	Minimum pay
Ordinary working day, employee works	Double the normal daily wage, or the normal daily wage plus pay for time worked, whichever is greater (s18(2)(b))
Not an ordinary working day, employee works	Normal daily wage plus pay for the work done (s18(3))

Higher earners. Section 18(3) doesn’t apply to employees earning above the BCEA earnings threshold (R269,600.90 a year from 1 May 2026). For them, pay for working that kind of holiday is a matter for the contract. Section 18(1) and (2) still apply.

Do you have to pay a 13th cheque or year-end bonus?

Not by law. The BCEA doesn’t give employees a right to a bonus or a 13th cheque. Whether you owe one depends on where it comes from:

• Contractual bonus. If the contract promises a 13th cheque or a set formula, it’s part of the employee’s pay. Changing or withholding it on your own may be a breach of contract.
• Bargaining council agreement. Some sector agreements require an annual bonus.
• Established practice. Paying the same bonus year after year, without saying it’s discretionary, may create an expectation employees can rely on.
• Discretionary bonus. You can decide not to pay it, but decide fairly and consistently. Employees can refer a dispute about benefits to the CCMA (or a bargaining council with jurisdiction) as an unfair labour practice (LRA s186(2)(a)), within 90 days.

Each case turns on its facts. If cash flow is tight, consult staff early and take advice before changing anything. Our post on whether employers are obliged to pay bonuses covers this in more detail.

December shutdown checklist

• Confirm the dates and tell staff in writing early.
• Check contracts, policies and any bargaining council agreement for shutdown, leave and bonus rules.
• Check leave balances and identify who is short.
• Agree in writing on unpaid leave or leave in advance.
• Mark public holidays (16 and 25 December, 1 January) so they aren’t deducted as leave.
• Get written agreements from anyone working a public holiday.
• Pay leave pay on time: before the leave starts or, if agreed, on the usual pay day (s21(2)).
• Confirm bonus obligations and communicate decisions clearly.

How can SEESA help?

SEESA can help you plan your shutdown, update your leave policy and bonus clauses, and handle leave disputes. See SEESA’s labour law services.

Speak to a SEESA Specialist about leave, public holidays and bonuses over your December shutdown.

Frequently Asked Questions

This article is general information, not legal advice. It reflects the law as at November 2026.