As the festive holiday season approaches, there are many rules employers must understand in order to remain compliant.
Employees are entitled to annual leave and public holidays under the National Employment Standards minimum entitlements.
Employers can ask their employees to work overtime or work on public holidays if the request is reasonable.
An employee can refuse a request to work on a public holiday if the request is unreasonable or if there are reasonable personal grounds for refusing. Whether the request is reasonable depends on various factors such as the needs of the business, terms of the employment contract, role and usual responsibilities of the employee, employee’s personal commitments and the notice period given about the extra hours.
Christmas and New Year Public Holidays 2022-23
This year the following public holidays apply to employers in all states:
Sunday 25 December 2022 Christmas Day
Monday 26 December 2022 Boxing Day
Tuesday 27 December 2022 Additional public holiday for Christmas Day
Sunday 1 January 2023 New Year’s Day
Monday 2 January 2023 Additional public holiday for New Year’s Day
When a public holiday falls on a full-time or part-time employee’s usual workday, employees are paid at ordinary rates when they take the day off.
Employees who work on a public holiday must either be paid penalty rates according to the relevant award or be given an extra day off in lieu of the public holiday. It is important to check the specifics of the relevant award for applicable provisions or additional benefits relating to public holidays.
An employer can direct their employees to take annual leave while the business has shut down provided that they follow guidelines of the relevant award.
Key points to remember:
Public holidays are counted as service, so annual and personal leave continues to accrue as usual.
Overtime worked on a public holiday may be paid at a different rate than regular overtime – check the relevant award or agreement.
Check the award or agreement for shutdown provisions. Most awards have guidance for directing employees to take leave during annual shutdowns.
If employees don’t have enough annual leave, employers can agree to pay them in advance for leave not yet accrued, or the employee can take unpaid leave.
The Fair Work Ombudsman has further advice on rules and entitlements during the end-of-year holiday season.
Further, please consider planning your cash flow over the holiday period, particularly if your business shuts down, but will still have obligations for payroll and other expenses.
If you have questions in relation to any of the above, please get in touch.