So we are well into the season of public holidays. Most employees would be saying “yippee” and most business owners would probably be saying quite the opposite. They may well be asking themselves…
“What do I pay my staff if they don’t work public holidays?”
“What’s it going to cost me if I want my staff to work on a public holiday?”
“How do I work out what I should pay them?”
OK, so here are my 5 useful things to know about public holidays…
- There are 11 public holidays in New Zealand in each calendar year.
- As from last year Waitangi Day and ANZAC day were ‘mondayised’. If they happen to occur on a weekend the following Monday would be a public holiday for employees who do not usually work a Saturday or Sunday. This year ANZAC day is on a Saturday and so the following Monday (27thApril) would be a public holiday for those who do not usually work a Saturday. It takes a little to think through all the different scenarios so please do call if you need help working through your different situations.
- If your staff member usually works a day that happens to be a public holiday but you do not require them to come to work then you only need to pay them what they would normally get paid on that day.
- If your staff member usually works a day that happens to be a public holiday and you require them to come to work then you need to pay them time and a half plus credit them with another day’s holiday. This is considered the minimum entitlement but some employment agreements may have conditions that are better than this. Whatever they are you need to be aware of them.
- In order to pay your staff you need to work out what their ‘relevant daily pay’ would be taking into account things such as bonuses, incentive payments, board and lodgings costs and overtime. If it is not practical to do this then you are able to use another formula called the ‘average daily pay’.
So, some things to think about…
- Do you need your staff to work on a public holiday or are they able to have the day off?
- Do your employment agreements detail what public holidays your staff get, if you require your staff to work on a public holiday and what they will be paid for those public holidays?
- Don’t plan training events or any additional activities on public holidays – unless you have to. This will cost you time and a half and another paid day off work at another time in the year.
- If you have a part timer who may only work one or two days a week then look to have them work mid-week therefore avoiding the ‘mondayised’ days or most public holidays which are usually observed on a Monday.