Public Holidays: Entitlements for Employees
In New Zealand, specific rules govern employee entitlements when working on a public holiday. These entitlements aim to ensure fair compensation and time off for employees who perform duties on these designated national holidays. The primary legislation governing these entitlements is the Holidays Act 2003.
What is an 'Otherwise Working Day'?
An 'otherwise working day' is a day that an employee would have worked if it had not been a public holiday [Source: Holidays Act 2003, s 12]. Determining an 'otherwise working day' involves looking at the employee's usual work pattern. Factors considered include the employee's employment agreement, their work patterns, and whether the employee has worked on that day of the week previously [Source: Holidays Act 2003, s 12(b)]. For employees with irregular work patterns, factors like the employer's roster, the employee's attendance record, and any expectation of work on that day can be considered [Source: Holidays Act 2003, s 12(c)].
Entitlement to Public Holiday Pay (Time-and-a-half)
Employees who work on a public holiday that would otherwise have been a working day for them are entitled to be paid at least time-and-a-half for the hours worked on that day [Source: Holidays Act 2003, s 50(1)(a)]. "Time-and-a-half" means that the employee receives their ordinary hourly rate plus an additional half of that rate for each hour worked.
If an employee works on a public holiday but it is not an otherwise working day for them, they are generally only entitled to be paid for the hours actually worked, at their ordinary rate, unless their employment agreement specifies a greater entitlement [Source: Holidays Act 2003, s 50(1)(b)].
Entitlement to an Alternative Holiday
In addition to being paid time-and-a-half, an employee who works on a public holiday that would otherwise have been a working day for them is also entitled to an alternative holiday, sometimes referred to as a "day in lieu" [Source: Holidays Act 2003, s 56(1)(a)]. This alternative holiday is a paid day off to compensate for working on the public holiday.
An alternative holiday is not granted if the public holiday is not an otherwise working day for the employee [Source: Holidays Act 2003, s 56(1)(b)].
Calculating Public Holiday Pay
Public holiday pay is calculated based on the employee's relevant daily pay or average daily pay for the hours worked on the public holiday. When an employee works on a public holiday that is an otherwise working day, they are paid at least time-and-a-half for the actual hours worked [Source: Holidays Act 2003, s 50(1)(a)]. For example, if an employee's ordinary hourly rate is $20, and they work 8 hours on a public holiday that is an otherwise working day, they would be paid (8 hours * $20) * 1.5 = $240. They would also receive an alternative holiday.
If the employee does not work on a public holiday that is an otherwise working day for them, they are entitled to be paid for that day as if they had worked, at their relevant daily pay or average daily pay, as applicable [Source: Holidays Act 2003, s 50(1)(c)]. This ensures they do not lose pay due to the public holiday.
Taking an Alternative Holiday
An alternative holiday must be taken on a day agreed upon by the employee and employer [Source: Holidays Act 2003, s 57(1)]. If no agreement can be reached, the employer may specify when the alternative holiday is to be taken, provided they give at least 14 days' notice [Source: Holidays Act 2003, s 57(2)]. The alternative holiday must be taken as a whole day, unless the employee and employer agree to it being taken in parts [Source: Holidays Act 2003, s 57(4)]. The payment for an alternative holiday is based on the employee's relevant daily pay or average daily pay, as applicable, for the day on which the alternative holiday is taken [Source: Holidays Act 2003, s 57(3)].
Employment Agreements and Public Holiday Entitlements
An employment agreement is a legally binding contract between an employer and an employee, outlining the terms and conditions of their employment [Source: Employment Relations Act 2000, s 63]. While employment agreements can specify additional benefits beyond the minimum legal requirements, they cannot provide for lesser entitlements than those specified in the Holidays Act 2003 or other relevant legislation [Source: Employment Relations Act 2000, s 66]. This means that the minimum entitlements for public holiday pay and alternative holidays, as outlined above, must always be met.
When to Seek Independent Legal Advice
Individuals seeking to understand their specific entitlements or obligations regarding public holidays, or those involved in a dispute with an employer concerning public holiday pay or alternative holidays, should contact Employment New Zealand for general information or seek advice from a qualified legal professional or a community law centre. Independent legal advice helps ensure that all applicable laws and individual circumstances are correctly considered. Community Law Centres
Key Resources
- Employment New Zealand: Provides comprehensive information on employment rights and obligations in New Zealand. https://www.employment.govt.nz/
- New Zealand Legislation: Official source for all New Zealand Acts of Parliament, including the Holidays Act 2003 and the Employment Relations Act 2000. https://www.legislation.govt.nz/
- Ministry of Business, Innovation and Employment (MBIE): The government department responsible for employment law. https://www.mbie.govt.nz/