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The summer holiday season can be quite challenging for both employers and employees. There are various factors to consider, such as public holidays, annual leave, business closures, and the associated rules that employers need to understand.
Book an appointment with Procure to ensure you're well informed and compliant
It's important to note that employees are entitled to annual leave and public holidays as per the National Employment Standards, which outline the minimum entitlements.
Employers do have the option to request employees to work on public holidays within reason. For instance, if your business operates throughout the year and your employment agreement specifies the possibility of working on public holidays, you can reasonably make such requests.
However, employees have the right to decline working on a public holiday if the request is deemed unreasonable or if they have valid personal reasons for refusal.
For the upcoming public holidays during the holiday season in 2023-24, here are the key dates:
25 December 2023
Christmas Day (25/12/2023)26 December 2023
Boxing Day (26/12/2023)1 January 2024
New Year’s Day (01/01/2024)
Public holidays involve paying employees at their regular rates if they take the day off. Those who work on a public holiday must either receive penalty rates according to the relevant award or be granted an additional day off in lieu of the public holiday. It's crucial to check the specific provisions in your award, as some may offer additional benefits.
When employees have scheduled annual leave during the Christmas and New Year period, these public holidays do not count as part of their annual leave. For example, if a permanent employee is on annual leave from 25 December to 5 January, they will utilise eight days of annual leave, with two of those days being paid as public holidays.
Here are some essential points to remember:
Leave accumulation during public holidays
Public holidays are considered as part of an employee's service, so annual and personal leave will continue to accrue.Overtime rates on public holidays
Overtime worked on a public holiday may have different pay rates compared to regular overtime, depending on the relevant award or agreement.Provisions for business shutdowns
Check your award or agreement for provisions regarding business shutdowns, as many provide guidance on directing employees to take leave during annual shutdowns.Options for employees with insufficient annual leave
If employees don't have sufficient annual leave, you can discuss options such as paying them in advance for leave not yet accrued or allowing them to take unpaid leave.
The Fair Work Ombudsman (FWO) offers additional guidance on rules and entitlements during the end-of-year holiday season.
It's essential to consider cash flow planning for the holiday period, especially if your business temporarily shuts down while still having payroll and other financial responsibilities.
Receive expert advice for your business finances
At Procure, we can provide expert advice on your employer responsibilities and help you plan for holiday period payments to ensure a smooth and stress-free summer holiday season.
