Public holidays in Australia: state-proclaimed dates and award penalty rates

Who proclaims public holidays

Public holidays in Australia are proclaimed by each state or territory under its own holidays legislation. This means that the specific public holidays observed, and the dates they fall on, can vary across the country. Employers need to be aware of the public holidays applicable in the state or territory where their employees are working. A compliance calendar tool can assist in tracking these variations.

Nationally observed holidays exist, such as New Year’s Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Christmas Day, and Boxing Day. However, states and territories also proclaim their own specific holidays, such as Labour Day, Show Day, and Picnic Day, which are observed on different dates depending on the jurisdiction.

When a proclaimed public holiday falls on a weekend, states may declare substitute days. These substitute days are also subject to the relevant state’s holidays legislation.

What the Fair Work Act provides

The National Employment Standards (NES) establish a baseline for public holiday entitlements for Australian employees. These standards recognise public holidays and provide that full-time and part-time employees who do not work on a public holiday are entitled to be paid their base rate for the ordinary hours they would have worked.

Employers have the ability to request that employees work on a public holiday. However, such requests must be reasonable, and employees have the right to refuse a request if they have reasonable grounds for doing so.

Casual employees are treated differently regarding public holiday pay. They are not entitled to public holiday pay if they do not work on the holiday, but are eligible for penalty rates if they are required to work.

Penalty rates for working a public holiday

Penalty rates for work performed on a public holiday are determined by the relevant modern award or enterprise agreement that covers the employment. These instruments establish the specific rates payable for work on these days.

Most awards prescribe public holiday penalty rates falling between 200% and 250% of the employee’s ordinary rate of pay. This means the employee receives a significantly higher rate for hours worked on a public holiday.

It is important to recognise that the penalty rate is an additional payment. It is paid in addition to the employee’s usual wage or salary and is not intended to replace it.

Common compliance mistakes

Several common errors arise when employers calculate public holiday pay. A frequent mistake is assuming that a casual loading within an employee’s pay already accounts for public holiday penalty rates. This is incorrect; casual loading is separate from the penalty rates required for work on a public holiday.

Another common oversight involves neglecting state-specific public holidays. Employers must be aware of and account for holidays proclaimed by individual states, such as Show Days, as these apply to employees working within that state. Failing to recognise these dates can lead to underpayment.

Incorrect handling of substitute days is also a source of compliance issues. When a public holiday falls on a weekend, a substitute day may be proclaimed. Awards can dictate whether both the original holiday and the substitute day are recognised as holidays, requiring different pay arrangements. Furthermore, employers sometimes fail to pay public-holiday-not-worked pay to part-time employees whose ordinary rostered work would have been on the public holiday.