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An employee is entitled to at least time and a half for the work that they are required to do on a public holiday. It doesn't matter whether the employee is paid on a salary, wage, or piece rate basis.
If the day would otherwise be a working day (the employee normally works on the day that the public holiday falls) the employee will also be entitled to an alternative holiday on pay (previously known as a day in lieu).
Our Holidays Online Tool makes it easy to work out what pay and leave an employee is entitled to on public holidays. You can also use it to work out sick and bereavement leave entitlements. Make sure you have payroll information or a pay slip handy when you use the tool.
When is an employee entitled to an alternative holiday?
An employee will be entitled to an alternative holiday where they can show that the public holiday they worked would otherwise have been a working day for them. The question to ask is “would the employee have worked on that day anyway?”
Our Holidays Online Tool helps answer this.
The Holidays Act 2003 gives some guidance to employers as to what to look at to see if the employee would have worked on that day anyway, such as:
- the employment agreement
- the employee's working patterns
- whether the employee works for the employer only when work is available
- the employer's rosters or other similar systems
- the reasonable expectations of the employer and employee that the employee would work on the day concerned.
For example, if the employee had worked for the previous three Fridays before Good Friday with the same employer, and they were expected to work on Good Friday as well, Friday is likely to be an otherwise working day for that employee. Because of this, if that employee is required to work on Good Friday, they will be entitled to an alternative holiday as well as time and a half for the work that they do on the day.
If, however, the employee did not usually work Fridays and it was agreed they would work on Good Friday they would not be entitled to an alternative holiday for working on Good Friday (but they would be entitled to time and a half payment for the hours they worked).
If the issue is too difficult for the employer and employee to determine themselves, a Labour Inspector can determine the issue for the parties.
What happens when the public holiday falls at a weekend?
Public holidays that fall at the weekend are treated in two ways:
- Christmas and New Year holidays are “mondayised” (i.e. shifted to the following Monday or Tuesday) for those who do not normally work at the weekend, but are celebrated at the weekend by those that do. However, no employee is entitled to more than four days worth of public holiday payments for these holidays
- ANZAC Day and Waitangi Day are celebrated on the day they fall, so only those working on the weekend are covered by the public holiday provisions.
What happens if an employee schedules themselves to work on the public holiday?
In circumstances where the employee manages their own work times – say where work is delivered and collected weekly – and a public holiday occurs, the employer and employee should clarify prior to the holiday whether the work will be undertaken on the public holiday. The adequacy of the time available to undertake the work, and the employee's normal working patterns should be taken into account.
We welcome the opportunity to help you further. If you want further clarification, more detailed information or guidance on any matter covered here, contact the Employment Relations Infoline.
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This page was last updated on:
22-Apr-2010
and is current. |
