Your SME’s Guide to a Smooth End-of-Year (and Stress-Free Start to 2026)
We know it’s only November!
But trust us, a smoother December starts with a little planning now.
The end of the year can be one of the busiest times for New Zealand businesses. Between wrapping up client projects, juggling annual leave requests, and trying to celebrate the wins that got you here, it’s easy to feel like Christmas is just another deadline.
But planning ahead doesn’t have to be stressful. In fact, it’s the simplest way to protect your time, your team, and your sanity. With a bit of structure and early communication, your business can close the year feeling organised, compliant, and ready to start 2026 strong.
Why End-of-Year Planning Matters
For small and medium-sized businesses, the end-of-year period is about more than ticking legal boxes. It’s a moment to reflect, reset, and make sure your people get the rest they’ve earned, whether your business shuts down entirely or keeps the doors open.
When managed well, this time of year benefits everyone:
Your people return (or stay) recharged and motivated.
Your business meets its legal obligations and avoids last-minute headaches.
You start January without scrambling to fix things that could’ve been sorted weeks earlier.
Even if you operate right through the holidays, planning ahead can help you spread workloads fairly, give everyone a meaningful break at some point, and keep morale high.
Think of it as wrapping up 2025 with care, for your people and your processes.
Compliance Basics: Get the Legal Stuff Right
The Holidays Act 2003 sets out what employers can (and must) do when it comes to annual close-downs. Here’s a quick refresher:
1. Give at least 14 days’ written notice
You’ll need to provide written notice of your close-down, including start and finish dates. Early communication helps your team plan their holidays (and you avoid confusion later).
2. Manage annual leave carefully
Employees with enough leave should use their accrued annual leave during the shutdown.
If someone doesn’t have enough, discuss options early — this might include taking leave in advance or unpaid leave (by agreement).
3. Honour public holidays
If statutory holidays like Christmas Day or New Year’s Day fall on a day the employee would normally work, they’re entitled to a paid day off.
4. Keep records tidy
Document all communications — notices, approvals, and agreements. It’s a simple step that protects both you and your team if questions arise later.
Pro Tip: Check everyone’s leave balances now. This gives you time to have those tricky “you might not have enough leave” conversations early — while there’s still time to plan alternatives.
Managing Leave When Everyone Wants Time Off
It’s the great Kiwi summer juggling act: trying to keep your business running while everyone understandably wants a break.
Here are a few practical tips:
Plan early: Draft your roster or confirm close-down dates as soon as you can.
Be transparent: Explain how decisions are made, whether it’s “first-in, first-served”, or based on business needs.
Rotate fairly: If you stay open, rotate shifts so everyone gets a reasonable rest.
Offer flexibility: If you can, let those working through take time off in January instead.
You don’t need to be Santa to keep everyone happy, just clear, fair, and organised.
Supporting Employees with Limited Leave
Not everyone will have enough annual leave to cover the entire shutdown, especially newer employees. Handle these situations with empathy and clarity.
You can:
Advance leave: Let employees “borrow” from next year’s entitlement.
Offer unpaid leave: As long as both sides agree and the implications are clear.
Explore alternatives: For example, some staff might prefer to work remotely or complete small projects during the shutdown period if your business allows.
The key is conversation. Talking early helps avoid last-minute stress and ensures everyone knows where they stand.
Keep Morale High as the Year Winds Down
This time of year isn’t just about compliance, but it can also be used as an opportunity to reinforce culture and appreciation.
A few simple actions can make a big difference:
Say thank you. Recognition matters. A personal note or a small celebration can lift spirits, especially at the end of a busy year of work.
Encourage a real break. Remind your team to switch off properly (and lead by example).
Support those working through. If some employees can’t take time off, consider extra flexibility or time in lieu in the new year.
A little kindness now sets the tone for a motivated, energised team in 2026.
Wrapping Up 2025 (and Setting Up for 2026)
A well-managed end-of-year shutdown gives your business a clean slate, and your people the rest they deserve. Take time to celebrate what went well, reflect on what could be improved, and start thinking about how you’ll re-launch in January.
Because the best way to start 2026 strong?
Finish 2025 well.