How to manage public holidays: a practical guide for employers
Public holidays can create costly compliance risks for businesses if employee entitlements, rostering and leave requests are not managed correctly.
From staffing shortages to disputes about pay and leave, failing to plan ahead can disrupt operations and increase costs, particularly during peak periods such as Easter and Christmas.
What is a ‘reasonable’ request to work?
Whether a request (or refusal) is reasonable depends on the circumstances. Employers must consider:
- The nature of the business (eg. hospitality vs office-based roles)
- Nature of the work performed by the employee
- Operational requirements and staffing needs
- Employee’s personal circumstances (eg. family or religious commitments)
- Whether the employee could reasonably expect to be requested to work on that day
- The type of employment of the employee (e.g. full-time, part-time, casual, shiftwork)
- How much notice has been provided (including any notice of refusal to work)
- Whether penalty rates or other compensation apply
Taking these factors into account helps reduce the risk of disputes or claims. It is also an express requirement under employment legislation.
Public holiday pay and penalty rates
Public holiday pay rates are typically higher and vary depending on the applicable award, enterprise agreement or employment contract.
Employers should review the relevant industrial instrument before rostering staff to ensure the correct rates and entitlements are applied.
What happens when a public holiday falls on a weekend in WA?
National system employees are entitled to public holidays under the Fair Work Act 2009 (Cth) (FW Act). However, in WA, the Public and Bank Holidays Act 1972 (WA) provides for substituted and additional public holidays.
For example, when Australia Day falls on a weekend, the public holiday is on the following Monday. In this case:
- Penalty rates apply to the substituted day (Monday)
- Employees who would ordinarily work that day are entitled to be paid
- The original weekend date is treated as a normal working day
However, in the case of other public holidays such as New Year’s Day, Anzac Day and Christmas Day, WA legislation provides that where those public holidays fall on a Saturday or Sunday, an additional public holiday is also observed on the Monday.
This means, because of the way both of these pieces of legislation work, WA employees may receive additional public holidays than the usual 11 a year. Employers should check the WA public holiday calendar each year to confirm additional dates.
Employers should also check the applicable industrial instrument, as some awards or enterprise agreements may provide for different substitution arrangements or additional public holidays.
How to manage staffing and leave over public holidays
Planning ahead is critical to maintaining operations and reducing risk.
Employers should:
- Set clear cut-off dates for annual leave requests
- Communicate expectations early, including notice requirements
- Use a fair and consistent system to approve leave (eg. operational needs or first-in basis)
- Identify critical roles that must be covered
- Confirm rosters in writing well in advance
- Review applicable penalty rates and costs before scheduling staff
In smaller teams, it may be reasonable to limit the number of employees who can take leave at the same time, based on genuine business requirements.
Public holidays: common employer questions
Can employers require employees to work on a public holiday? Yes. Employers can request employees to work if the request is reasonable under the Fair Work Act.
Can employees refuse to work on a public holiday? Yes. Employees can refuse if the request is not reasonable or their refusal is reasonable.
Do employers have to pay employees who don’t work on a public holiday? Yes. Employees who would ordinarily have worked are entitled to be paid for the public holiday.
Can employees take annual leave over public holidays? Yes. But public holidays do not count as annual leave, meaning employees are paid for the public holiday without using their leave balance.
Managing personal leave during public holiday periods
Public holiday periods can also see an increase in personal/carer’s leave requests.
Under section 107 of the FW Act, employers can require employees to provide notice and evidence to support these absences. If this requirement is in place and not met, employers may be able to refuse payment.
Having clear policies and consistently applying them can help prevent misuse and reduce disputes.
Know your obligations
The FW Act provisions outlined above apply to national system employers. Different rules may apply to State system employers.
Breaches around public holidays can come with significant penalties, and costly litigation.
Understanding how public holiday laws interact with awards, agreements and State legislation is essential to ensuring compliance and avoiding costly mistakes.
Need help managing public holidays?
CCIWA’s Employee Relations Helpline – a free service for CCIWA Members – provides expert support to navigate public holiday obligations, staffing challenges and employee entitlements. Contact the team on 08 9365 7660 or [email protected].
