Public holidays and penalty rates during Christmas

Public holidays under the Fair Work Act

Under the Fair Work Act 2009 (Cth) (FW Act), employees are entitled to be absent from work on a public holiday in the place they work. However, an employer may request an employee to work on a public holiday if the request is reasonable. In such cases, an employee may refuse the employer’s request if it is unreasonable or if they have reasonable grounds to refuse to work.

Some factors in determining whether an employer’s request to an employee to work or an employee’s refusal to work is reasonable include, but are not limited to:

• the nature of the workplace and work performed by the employee
• the employee’s personal circumstances including family responsibilities
• whether the employee could reasonably expect that the employer might request them to work on the public holiday
• whether the employee is entitled to overtime payments, penalty rates or other compensation for working on a public holiday
• whether the employee is employed full-time, part-time or as a casual
• the amount of notice in advance the employer has given the employee when making the request
• the amount of notice in advance the employee has given the employer when refusing the request
• any other relevant matter.

When are the public holidays during the Christmas season?

What are the penalty rates if an employee works on a public holiday?

Most modern awards provide employees with an entitlement to be paid penalty rates for working on public holidays.

Generally, the penalty rate for working on a public holiday is 250% of the ordinary hourly rate for all hours worked. Depending on the award, casual employees may not receive the 25% casual loading on a public holiday.

Employers are encouraged to check the relevant award which covers their employees to confirm the correct entitlements.

What payment does an employee receive if they do not work on a public holiday?

If an employee is absent from work on a public holiday and they normally have ordinary hours on that day, the FW Act provides an entitlement for the employee to be paid their base rate of pay for their ordinary hours on the day.

For example, if an employee normally works 8 hours on Mondays but has the day off because of the Christmas Day public holiday, they will still receive payment for the 8 hours at their base rate of pay.

On the other hand, if the employee does not normally work on Mondays (because they are part-time for example), they will not receive any payment on Monday because they do not have any ordinary hours on that day.

More information

The Fair Work Ombudsman (FWO) has a Pay and Conditions Tool to help employers check minimum award pay rates and other pay entitlements.

The FWO also have an Employer Advisory Service to help employers ensure that they are meeting their obligations under the FW Act.