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While Kiwi public holidays can be a dream for employees, they mostly pose headaches for employers. Luckily, Citation HR has prepared this ready-to-use guide listing everything you need to know – the when, where, and what you need to expect and potentially budget.
Many of the key questions you’re likely to have about running a business in New Zealand are easily anticipated and answered – after all, Citation HR is all about making managing people simple to free you up so you can get on with business.
Monday 10 April (Easter Monday) is the first one you may need to consider.
“Mondayisation” is the term for when a public holiday that falls on a weekend day, is observed on the next following working day (usually a Monday) so that all workers can get the public holiday benefit.
For example, earlier this year the day after New Year’s Day was Mondayised because it fell on a Saturday. Workers who normally would have worked on Saturday 2 January received a public holiday entitlement, and so did workers who wouldn’t have worked on the Saturday but would have usually worked on Monday 4 January.
You’re required to pay them at least time and a half, or their on-call allowance, for working the holiday, without the entitlement of an alternative day off.
You’re not required to pay them for the holiday as it’s not an ordinary working day. For example, someone rostered Monday to Thursday when Christmas Day falls on a Friday.
You must pay them their normal daily pay and the day off.
You must pay them at least time and a half, or their on-call allowance, plus they should get a full alternative day off (day in lieu), unless you only employ them to work on public holidays.
Your employee can only be required to work on a public holiday if their employment agreement states that they must work when a public holiday falls on their normal working day, or, if they agree to.
You can ask an employee to work on a public holiday, keeping in mind that your request must be reasonable.
Your employees are entitled to 12 public holidays a year. However, they’re only entitled to a paid public holiday if it falls on their normal day of work.
Here are the factors to consider when determining if a request (or refusal) to work on a public holiday is reasonable:
Casual employees aren’t entitled to alternative days or holiday pay entitlements for working on public holidays.
If you’re not currently paying an employee because they’re on Accident Compensation Corporation (ACC) leave or parental leave, you’re not required to pay them for any public holidays during the unpaid leave period. However, do note that ACC leave is regarded as continuous employment and so annual leave entitlements will still accrue.
On-call and shift work are notoriously complex arrangements for working out the public holiday entitlements. Employees who work a shift and work on a public holiday should receive time and a half for the hours they work. If they would have ordinarily worked on that day, then they also are entitled to an alternative holiday.
For on-call employees, the public holiday entitlement will depend on the type of arrangement you have with that employee. Usually, public holiday entitlements would apply if the employee was unable to enjoy a full holiday due to their on-call requirements.
Sometimes you might have a business reason, or your employee may have a personal reason, for observing a public holiday on a different calendar day. To swap a public holiday you must have agreement in writing.
Please get in touch with the team at Citation HR to clarify which holiday entitlements to apply.
Upon termination or resignation of an employee’s service, you must pay them for any public holidays that would have fallen in their available leave period, as if they had taken their annual leave entitlement from the day after the last day of their notice period. For example, someone whose last day of service is 31 January and who has two weeks’ leave owed to them would get paid out for the public holiday of Waitangi Day on 6 February.
If this article has raised any questions or concerns, or you’d like to learn more about how we can help your business, please contact our team of workplace relations experts.