So you blinked and now it’s Christmas! If you are in business, no doubt you have planned what will be happening over the end of year break. For some it is a compulsory shutdown but for others it can mean juggling staff and navigating statutory holidays.
We have 4 public holidays over the Christmas break. These are:
- Monday 25 December
- Tuesday 26 December
- Monday 1 January
- Tuesday 2 January
These can be treated in a number of ways, depending on how your business operates. You might operate with only your core staff or use casual staff to keep things covered. Whatever your situation, it’s important to know what your legal requirements are.
Annual Office Closure:
A common practice for some businesses, including manufacturing, retail, and education, is to completely shut down. Closing over the Christmas and New Year period requires employees to use annual leave, leave without pay or a mix of the two. Closing for two weeks (10 working days), uses 6 annual leave days to supplement the 4 public holidays. New employees who have not accrued enough days receive holiday pay of 8% of their total earnings up to the closure start date, with adjustments for leave taken in advance.
Working Public Holidays
Employees are only obligated to work on a public holiday if specified in their employment agreement and if it falls on an “otherwise working day.” An “otherwise working day” is one the employee would normally work if it wasn’t a public holiday, annual holiday, alternative holiday, sick leave, or bereavement leave. For employees who work variable hours, a practical approach is needed to determine if the public holiday falls on an “otherwise working day”.
In cases where an employee’s shift spans multiple days, the same principle applies. For instance, if a shift begins on Christmas Day and ends on Boxing Day, the employee is entitled to time and a half for all hours worked and receives a one-day alternative holiday for each public holiday considered an “otherwise working day”.
Seasonal or casual employees specifically hired to cover public holidays are not entitled to an alternative holiday but must receive payment at time and a half.
On-Call Employees during Public Holidays:
Employees who must be “ready to work” if they are required are considered on call. If an employee is called out on an “otherwise working day”, they receive time and a half for the hours worked as well as a one-day alternative holiday. If the call-out hours are fewer than their usual working hours, the balance must be paid at Relevant Daily Pay or Average Daily Pay. If not called out but required to restrict activities, i.e. stay in cell phone reception, and fit-for-duty, the employee is entitled to a paid day off and a one-day alternative holiday.
Leave and Public Holidays:
Public Holidays override all other leave types. If a public holiday falls during an annual leave period, the employee gets a paid day off when the holiday is an otherwise working day. However, during parental leave, no paid day off is granted. If an employee is on ACC, there are a number of complex conditions that apply and they can be read here.
Sickness during public holidays
If the employee was rostered to work but calls in sick, the day is still treated as a public holiday taken, paid at Relevant Daily Pay or Average Daily Pay, not as a sick leave day however if the employee falls sick while working on a public holiday, the employee is paid time and a half for actual hours worked and receives a one-day alternative holiday. The remaining shift is treated as a public holiday taken, paid at Relevant Daily Pay or Average Daily Pay, not as a sick leave day.
Alternative Holidays:
Measured in days, not hours, employees gain one alternative holiday regardless of time worked on the public holiday. This allows flexibility for employees with variable hours to take a full day off on a day of their choice. For example, if an employee works 4 hours on a public holiday and they normally work 6 hours, they would get the whole day off when they take their alternative holiday later in the year.
