The weather is heating up and the end of year is fast approaching, which means it’s time to think about Christmas and New Year.
Ignoring your employee’s public holiday entitlements, however, can quickly sour even the most festive occasion.
Don’t forget that under the Fair Work Act 2009, full-time and part-time employees who would normally be required to work on a public holiday are entitled to be absent without loss of pay. This means salaried employees continue to receive their ordinary pay even if they do not work on that day.
Casual employees, by contrast, are generally not entitled to paid public holidays, unless their contract or the applicable award provides for it. If they work on a public holiday, they usually receive a penalty rate, often 1.5–2 times their normal rate.
Employers should also be aware that some salaried staff, such as managers or executives, may not have specific penalty rates for public holidays. However, they are still entitled to their fixed salary. Modern Awards or Enterprise Agreements may include additional provisions, such as time off in lieu if a salaried employee is required to work on a public holiday.
Common mistakes Vertruen uncovers in compliance audits
Failure to pay penalty rates
Some employers neglect to apply the correct penalty rates for employees who work on public holidays, leading to underpayments and noncompliance.
Poor record keeping
Failing to maintain accurate records of hours worked, leave taken, and public holiday entitlements can complicate compliance and make it difficult to resolve pay disputes.
Outdated payroll systems
Some payroll systems do not account for the complexities of public holiday pay, leading to errors in calculations and potential non-compliance.
Don’t be a grinch this Christmas – act now to stay compliant!
Ahead of the Christmas and New Year period, employers should regularly review employment contracts and relevant awards or enterprise agreements to ensure they reflect current public holiday entitlements. Payroll systems must be checked to ensure they’re capable of accurately calculating public holiday pay and related entitlements.
If there is any uncertainty around your public holiday obligations, Vertruen can help prevent costly errors. By offering practical, ongoing support, we can help businesses meet their obligations during the festive season with confidence. To learn more about our services, contact us today.
