2020/21 Christmas/New Year Public Holidays – The Basics

14 December 2020

In essence:

  • If Christmas Day (Friday 25 December) is otherwise a working day for the employee that day must be their recognised public holiday.  Conversely if Friday would not otherwise be a working day for the employee, they are not entitled to be paid for that public holiday.  They observe it as an unpaid day off (see s48(1) Holidays Act 2003).  
  • Similarly, if New Years’ Day (Friday 1 January) is otherwise a working day for the employee that day must be their recognised public holiday.  Conversely if Friday would not otherwise be a working day for the employee, they are not entitled to be paid for that public holiday.  They observe it as an unpaid day off (see s48(1) Holidays Act 2003).  
  • If Boxing Day (Saturday 26 December) is otherwise a working day for the employee that day must be their recognised public holiday.  Conversely, if Saturday would not otherwise be a working day for the employee, the day must transfer to Monday 28 December.  If Monday would not otherwise be a working day for the employee, the employee is not entitled to be paid for that public holiday.  They observe it as an unpaid day off (see s48(1) Holidays Act 2003).  
  • Similarly, if 2 January (Saturday 2 January) is otherwise a working day for the employee that day must be their recognised public holiday.  Conversely, if Saturday would not otherwise be a working day for the employee, the day must transfer to Monday 4 January.  If Monday would not otherwise be a working day for the employee, they are not entitled to be paid for that public holiday.  They observe it as an unpaid day off (see s48(1) Holidays Act 2003). 

Note that an employee is not entitled to more than 4 public holidays over this period.

How do we determine whether a particular day would otherwise be a working day for an employee?

If there is a roster in place that will usually govern.  Otherwise, there are a number of factors to consider such as the employee’s employment agreement, the employee’s work pattern and whether the employee would otherwise have worked on the day, but for the public holiday.  As a guide:

  • If the employee has worked on a given day of the week for at least 7 out of the previous 13 weeks, it may be reasonable to conclude that day is “otherwise a working day” for the employee. 

  • If the employee has worked on a given day for at least 3 out of the previous 5 weeks it may also be reasonable to conclude that day is “otherwise a working day” for the employee. This option recognises there may have been a recent work pattern change.

Payment for working on a public holiday

Every person who works on a public holiday is entitled to be paid not less than time and a half (as defined in the Act).

But only employees for whom that day would otherwise be a working day, are entitled to an alternative holiday.

Note: Payment for the alternative holiday is the employee’s relevant daily pay for the day on which they take the alternative holiday.  The period of time spent working on the public holiday has no bearing on the matter.  Therefore, if you’re asking an employee to work for only a short period on a public holiday, be aware they will probably be entitled to a whole day off on pay at a later date.

Employees on standby on a public holiday are also entitled to an alternative holiday even if they are not actually required to perform any work, provided the nature of the restriction imposed by the on-call condition on the employee’s freedom of action is such that, for all practical purposes, the employee has not had a whole holiday.