Why is December a hotspot for disputes? Understanding seasonal pressures

 1. Year-end pressures and deadlines

December is synonymous with end-of-year deadlines. In the business world, companies rush to finalise contracts, close financial accounts, and meet annual performance targets.  Procurement tender deadlines also often fall at the end of the month.  This pressure can create heightened stress among stakeholders, errors, and increase the likelihood of miscommunication, oversight, or unmet expectations. Holiday absence heightens these issues. For example, disputes can arise over project delays, incomplete deliverables, or discrepancies in financial reporting as parties scramble to finalise matters before the new year.

Employees and contractors may feel the strain of added workloads, creating potential for workplace disputes or grievances. This is particularly true in industries where year-end sales targets or holiday season demands are critical to success.  For example, we are often asked to bring or defend tender challenges in relation to procurement deadlines in December, where the submission has been rushed or is incomplete.

2. Budget reconciliations and financial disputes

Many UK businesses’ financial year ends on 31 December. As budgets are reconciled, disputes over profit sharing, expenses, and unpaid invoices become more common. Shareholders may question management decisions, and disputes between directors or partners may surface over the allocation of resources or business direction.

3. Family and succession disputes

The holiday season often brings families together, which can be a double-edged sword. For some, unresolved disputes simmer throughout the year and boil over when family members meet in December. This is particularly common in cases involving family businesses or estates. Discussions about succession planning, inheritance, or family roles may lead to disagreements that result in legal disputes.  In one extreme example we dealt with in connection with a family business, a family member chose the Christmas period to break into the office and install listening devices to eavesdrop on future meetings.

4. Increased emotional stress

December is a time of heightened emotions, as people reflect on the year gone by and set expectations for the future. This emotional context can amplify existing frustrations and lead to conflict. The holiday season, while joyful for many, can also be isolating or stressful for those facing personal or financial difficulties, further straining relationships.

5. Planning for the New Year

Businesses and individuals often use December to prepare for the upcoming year. In doing so, unresolved issues or grievances from earlier in the year may resurface. For instance, shareholders might scrutinise business performance more critically.

How to navigate December disputes

While the potential for conflict is high in December, it is also an opportunity to address issues constructively. Open communication, early intervention, and professional advice are key to preventing disputes from escalating. Businesses can benefit from clear processes for resolving year-end conflicts, while individuals can seek support from legal or mediation experts to address grievances amicably.

For those involved in disputes, acknowledging the seasonal pressures and focusing on collaborative solutions can pave the way for a fresh start in the new year. If you are facing a potential dispute this December, seeking early guidance can make all the difference in achieving a positive outcome.