Public holidays in New Zealand (also known as “stat days”) consist of a variety of cultural, national, and religious holidays that are set out in legislation.
Employees who do not work on a public holiday that would otherwise be a working day, must be paid not less than the employee’s relevant daily pay or average daily pay for that day.
With four public holidays just around the corner and the end of the year being the traditional holiday leave period, it’s important to get public holiday entitlements correct.
Public Holiday Entitlements
Where an employee works on a public holiday that falls on an otherwise working day for them, they receive at least a payment of time and a half for each of the actual hours they worked, as well as an alternative paid holiday. Whereas where an employee works on a public holiday that is not an otherwise working day, there is no entitlement to an alternative holiday, but the employee must still be paid at least time and a half.
An “otherwise working day” is a day that an employee would normally have been working had the day not been a public holiday. In most cases this is easy to determine. However, when employees work in accordance with irregular shift patterns and it is not clear when the otherwise working day will be, then the employer and employee must attempt to reach agreement. In reaching agreement in this regard, they should take into account the employment agreement, work patterns, rosters, reasonable expectations and whether the employee only works when work is available.
Christmas Day (25 December) – A Restricted Shop Trading Day
The restricted shop trading days mean that for three and a half days each year, almost all shops must close in New Zealand except for some shops allowed to open with conditions, or that have an area exemption or Easter Sunday local policy. Under the Shop Trading Hours Act 1990, the days when almost all shops must be closed are:
Christmas Day (a public holiday)
Good Friday (a public holiday)
ANZAC Day, until 1.00 pm (a public holiday)
Easter Sunday (not a public holiday)
An employee can be required to work if a public holiday (such as Christmas Day and New Year’s Day) is observed on a day the employee would normally work (their otherwise working day), and their employment agreement states that they are required to work on a public holiday.
However, if an employer is a shop owner it is important to ensure that their shop can trade on Christmas Day under the Shop Trading Hours Act 1990. If the shop is required to be closed and their employment contract allows it, the employer can direct employees to work and perform duties not related to trading. (eg: stock takes or spring cleaning).
Leave and Public Holiday Pay
If an employee is taking annual holidays during the festive season and a public holiday falls on an otherwise working day for the employee, it is treated as a public holiday and not a part of the employee’s annual holidays. The employee is then paid their relevant daily pay or average daily pay if applicable. However, if the public holiday falls on a day that is not an otherwise working day for the employee, then they would not be paid for the public holiday.
If a public holiday occurs during an employee's sick, bereavement or family violence leave and that day would have been an otherwise working day for the employee, the day is considered a paid unworked public holiday. No sick, bereavement or family violence leave is deducted.
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