Employers
Managing public holidays as an employer
Your employees are entitled to a paid day off if a public holiday falls on a normal working day for them.
Your responsibilities as an employer
If an employee takes the Employees are entitled to 12 paid public holidays every year if they fall on days that the employee would otherwise be working. If a public holiday falls on a Saturday or Sunday and this is not an otherwise working day for the employee, the public holiday is moved to the following Monday (or Tuesday if 25 or 26 December or 1 or 2 January fall on a Sunday) for that employee.
As an employer, you should also be clear on the rules around:
- paying employees for public holidays that fall at a time they are taking another form of leave
- transferring public holidays.
Entitlements and conditions
All employees are entitled to a maximum of 12 public holidays a year. However, an employee:
- cannot claim 2 public holidays if a public holiday is ‘Mondayised’ (one for the actual date and one for the Mondayised date) – even if both are ‘
otherwise working days ’ for themAn otherwise working day is a day that an employee would have worked had the day not been a public holiday, sick leave, bereavement leave, family violence leave or alternative holiday for that employee.
- cannot be entitled to more than 4 public holidays over the Christmas and New Year period, regardless of their work pattern
- can claim only one Anniversary Day per year – for example, if an employee normally works in Auckland but is temporarily based in Wellington, you and the employee should agree which Anniversary Day will be observed. If you cannot reach an agreement, then the employee is entitled to observe the anniversary of the province in which they usually work.
Otherwise working day
An otherwise working day is a day that an employee would have been working had the day not been a public holiday, sick leave, bereavement leave, family violence leave, annual holiday or An alternative holiday is a day where someone can take a paid day off from work to make up for working on a public holiday, when that public holiday fell on a day they would usually work.
If an employee is taking agreed time off without pay when they would otherwise be required to work, the day would not normally be classified as an otherwise working day.
In many cases it’s easy to work out whether or not an employee would otherwise have worked on the day in question because the working pattern or roster is constant. You and your employee can easily agree about whether the employee would otherwise have worked that day.
It’s important to be able to work out whether a day is an otherwise working day for an employee because for example:
- An employee is entitled to a paid day off work on a public holiday or alternative holiday, and may take sick leave, bereavement leave or family violence leave, only on days that are otherwise working days for them.
- If an employee works on a public holiday and the day is an otherwise working day for them, they are entitled to an alternative holiday (unless they are employed to work only on public holidays).
- Annual holidays can only be taken on days that would be otherwise working days.
Unclear whether a day is an otherwise working day
If it’s unclear whether the day is an otherwise working day for an employee, the things that you and your employee must consider in trying to reach agreement include:
- what the
employment agreement saysEmployment agreements contain the terms and conditions of employment. Every employee must have a written employment agreement outlining the terms and conditions of employment. ‘Employment agreement’ has a broader meaning that includes all other documents and other agreements forming part of the contractual agreement between the employee and employer.
- the employee's usual work patterns
- any other relevant factors such as:
- if the employee works for you only when work is available
- your rosters or other similar systems
- your reasonable expectations and that of your employee as to whether the employee would have worked on that day
- if the employee would normally have worked if it was not a holiday (public or alternative) or if the employee was not on leave (sick or bereavement).
You and your employee must consider all these factors when trying to reach an agreement. For example, you cannot just rely on one and then conclude that the day is not an otherwise working day.
Working out whether the day is an otherwise working day is a practical task, and each situation needs to be considered based on the employee’s specific situation and work pattern.
If the day falls during a closedown period, the above factors need to be taken into account as if the closedown period were not in effect.
You cannot take an employee off the roster on a public holiday when it’s a day that they would otherwise have worked on, to avoid giving the employee public holiday entitlements. Not recognising an employee’s holiday entitlements is against the law.
When an employee does not have a clear work pattern or there’s a lot of variation in work times, it may be harder to decide if a day is an otherwise working day.
Factors to use to decide whether a day is an otherwise working day [PDF, 310 KB]
If you’re still unsure, please contact us.
Kiri alternates her shifts with Ross. Kiri’s roster requires three 10-hour days on Monday to Wednesday one week (Week 1) and the same hours on Thursday to Saturday the following week (Week 2). If Week 1 coincides with the week in which Good Friday falls, Kiri will not get paid for Good Friday or Easter Monday (that will fall in Week 2) because she would not have been scheduled to work on that Friday or Monday (they are not otherwise working days for her).
Ross will be paid for both Good Friday and Easter Monday as the roster pattern would have scheduled him to work these days if they weren’t public holidays (these are otherwise working days for him).
When employees work on a public holiday
If an employee works on a public holiday, you must:
- pay them at least time and a half for the hours they work
- give them an
alternative holiday (also known as a ‘day in lieu’) if it's a day they would otherwise be working – unless they are employed only to work on public holidays.An alternative holiday is a day where someone can take a paid day off from work to make up for working on a public holiday, when that public holiday fell on a day they would usually work.
An employee is entitled to an alternative holiday, even if only part of their shift fell on the public holiday.
Most of the time, it is up to the employee if they want to work on a public holiday. You can only require an employee to work on a public holiday if:
- it falls on a day they would otherwise be working, and
- their
employment agreement says they have to work on the public holiday.Employment agreements contain the terms and conditions of employment. Every employee must have a written employment agreement outlining the terms and conditions of employment. ‘Employment agreement’ has a broader meaning that includes all other documents and other agreements forming part of the contractual agreement between the employee and employer.
If an employee is required to work on a public holiday that does not fall within their agreed and guaranteed hours, this must be covered by an availability clause in their employment agreement.
Shifts split across a public holiday and a normal day
Generally, a public holiday runs from midnight to midnight, so if an employee works on any part of the public holiday (and it is an An otherwise working day is a day that an employee would have worked had the day not been a public holiday, sick leave, bereavement leave, family violence leave or alternative holiday for that employee. An alternative holiday is a day where someone can take a paid day off from work to make up for working on a public holiday, when that public holiday fell on a day they would usually work.
Sean works an 8-hour shift from 7pm Sunday to 3am Monday, and Monday is a public holiday and an ‘otherwise working’ day for him. He is entitled to:
- 5 hours at his normal Sunday rate of pay for the hours 7pm to 12am, and
- at least time and a half of his regular pay (or average daily pay, if applicable) for the 3 hours he worked on the Monday, and
- an alternative holiday.
Tom works 8 hours from 10pm Christmas Day to 6am on Boxing Day and both are ‘otherwise working days’ for him. He receives:
- 8 hours pay of at least time and a half, and
- 2 alternative holidays (one each for Christmas and Boxing Day).
Dianne works from 10pm Christmas Eve to 6am on Christmas Day, and Christmas Day is an ‘otherwise working day’ for her. She works the same shift beginning on Christmas night, finishing at 6am on Boxing Day. Dianne gets:
- 2 hours pay at ordinary time (for Christmas Eve), and
- 6 hours pay of at least time and a half for the first shift, and
- 8 hours pay of at least time and a half for the second shift, and
- 2 alternative holidays (one each for Christmas Day and Boxing Day).
Helen works an 8-hour shift starting on ANZAC Day at 10pm and ANZAC Day is an ‘otherwise working day’ for her. She is entitled to:
- 2 hours pay of at least time and a half, and
- 6 hours pay at the normal hourly rate, and
- an alternative holiday.
Alternatively, Helen and her employer could agree to transfer the public holiday so that it covers one whole shift.
When employees are on call during a public holiday
If, on a day they would otherwise be working, an employee:
- is called out, they are entitled to at least time and a half for the time worked – plus an
alternative holiday An alternative holiday is a day where someone can take a paid day off from work to make up for working on a public holiday, when that public holiday fell on a day they would usually work.
- has to limit their activities on the day to the extent that they haven’t enjoyed a full holiday – for example, if they are required to stay at home all day, but are not called out – they are entitled to be paid at their
relevant daily pay , orRelevant daily pay means the pay an employee would have been paid if they had been working on the day concerned. It is used to calculate payment for public holidays, alternative holidays, sick leave, family violence leave and bereavement leave.
average daily pay (if applicable), and also get an alternative holidayAverage daily pay is a way of determining what an employee should be paid on a day that they would have otherwise worked but didn’t. It is used to calculate payment for public holidays, alternative holidays, sick leave, family violence leave and bereavement leave.
- is on call, but doesn’t have to limit activities – for example, if they can choose not to accept a call-out – they only get an alternative holiday if they accept a call-out. They must also be paid at least time and a half while they're on the call-out
- is on call but they are not called out, or chooses not to accept the call-out, they are entitled to their relevant daily pay or average daily pay for the public holiday.
Transferring a public holiday
An employer and employee can agree that a public holiday is taken on another day for the employee.
Requests to transfer a public holiday:
- can be made by you or the employee
- must be considered in
good faith by both partiesGood faith means dealing with each other honestly, openly, and without misleading each other. It requires parties to raise issues in a fair and timely manner, treat the other party with respect, and give the other party information which may be referred to in any future discussions.
- must be in writing – in the
employment agreement or a separate agreement, andEmployment agreements contain the terms and conditions of employment. Every employee must have a written employment agreement outlining the terms and conditions of employment. ‘Employment agreement’ has a broader meaning that includes all other documents and other agreements forming part of the contractual agreement between the employee and employer.
- must meet the minimum requirements below.
If you ask an employee to transfer a public holiday, they do not have to agree. Conditions when transferring a public holiday are:
The day the public holiday is transferred to must be an identifiable calendar date or a 24-hour period.
- The day must be a normal working day for the employee.
- The day must not be another public holiday.
- You cannot make the transfer to avoid paying the employee time and a half for working on a public holiday or to avoid providing them with an alternative holiday (although this might happen).
- The transfer must not reduce the number of public holidays the employee gets.
Transferring part of a public holiday for shift workers
If an employee works shifts that span two days, you can agree with them in writing to transfer a public holiday so that it covers one whole shift.
The 'day' a public holiday is transferred to must:
- be a 24-hour period that begins or ends on the actual public holiday, and
- include the whole of the shift the employee is due to work.
If a public holiday falls while an employee is on leave
These scenarios show what happens when a public holiday falls when an employee is on leave.
If your workplace has a close-down period that includes public holidays – for example, over the Christmas and New Year period – your employees are entitled to a paid public holiday if they would otherwise have worked on that day had there not been a closedown.
If an employee is on annual holidays when there’s a public holiday, they get a paid public holiday if they would otherwise have worked that day. They do not lose a day of annual holidays.
Example – ANZAC day falls on a weekend during a period of annual holidays
Julie works full-time Monday to Friday. She takes 2 weeks’ annual holidays from 16 to 30 April, during which time ANZAC Day falls on a day she would ordinarily be working. Julie must be paid her relevant daily pay or average daily pay for the ANZAC Day public holiday, and does not lose a day of annual holidays.
If ANZAC day were to fall on a weekend, as Julie doesn’t work weekends, ANZAC Day would be Mondayised for her.
You don't have to pay an employee for any public holiday that falls while they're on parental leave, as they would not have otherwise worked that day.
If an employee would have worked on a public holiday but could not do so because they were sick, affected by family violence (if entitled to family violence leave), or suffering a bereavement:
- they should be paid their
relevant daily pay orRelevant daily pay means the pay an employee would have been paid if they had been working on the day concerned. It is used to calculate payment for public holidays, alternative holidays, sick leave, family violence leave and bereavement leave.
average daily pay for the day of the public holidayAverage daily pay is a way of determining what an employee should be paid on a day that they would have otherwise worked but didn’t. It is used to calculate payment for public holidays, alternative holidays, sick leave, family violence leave and bereavement leave.
- they are not entitled to time and a half, or an
alternative holiday , because they did not work on the dayAn alternative holiday is a day where someone can take a paid day off from work to make up for working on a public holiday, when that public holiday fell on a day they would usually work.
- they do not lose a day of annual holidays
- the public holiday does not count as one of the days they are entitled to take after suffering a bereavement.
You don’t normally have to pay employees for any public holiday that falls while they're on planned unpaid leave, as they would not have An otherwise working day is a day that an employee would have worked had the day not been a public holiday, sick leave, bereavement leave, family violence leave or alternative holiday for that employee.
An employer is required to pay an employee for an unworked public holiday when it falls on a day the employee would otherwise have worked. Generally, an employer won’t have to pay an employee for a public holiday while they are on ACC, as these days are not otherwise working days.
There may, however, be exceptions to this, so it’s important to consider on a case-by-case basis whether a day is an otherwise working day.
When an employee gets injured, it’s likely that any public holiday in the following week that would have been an ‘otherwise working day’ will continue to be considered as such. This means the employee will be entitled to payment for those public holidays.
Where an employee is using leave entitlements (such as sick leave) to cover the first week after a non-work-related injury, their leave balance should not be reduced, and they should be paid for the public holiday.
If you are paying first-week compensation to an employee, and the employee is entitled to a paid public holiday during that week, you should pay them their full Relevant daily pay means the pay an employee would have been paid if they had been working on the day concerned. It is used to calculate payment for public holidays, alternative holidays, sick leave, family violence leave and bereavement leave. Average daily pay is a way of determining what an employee should be paid on a day that they would have otherwise worked but didn’t. It is used to calculate payment for public holidays, alternative holidays, sick leave, family violence leave and bereavement leave.
ACC payments
ACC weekly compensation payments are calculated on a weekly basis and cover time away from work due to an injury. If an employee is paid for any public holidays while receiving ACC weekly compensation, their payment for that week may be affected. Employees must let ACC know if any income, including for a public holiday, is paid during a period of weekly compensation in case it affects how much compensation ACC can pay them.
Employers who are paying weekly compensation to an employee on behalf of ACC (through an Employment Reimbursement Agreement) should contact ACC to advise of any additional income paid to the employee, as this may affect the calculation of the employee’s weekly compensation.
Income for your employee while they recover - ACC(external link)