Public Holidays

Public holidays generate more payroll queries than almost any other topic, particularly around how they interact with different types of leave, stand-downs, and employee absences. Here’s a plain-language guide to the questions we most commonly receive.

Are public holidays paid if the employee is on unpaid leave?

If the employee is on unpaid leave only the day before or only the day after the public holiday, they are still entitled to be paid for the public holiday.

However, if the employee is on unpaid leave (including unpaid parental leave) on both the day before and the day after the public holiday, the public holiday is not paid.

Note: If an employee is taking annual leave at the same time as unpaid parental leave, they will not be paid for the public holiday.

What happens if a public holiday falls during a period of paid leave?

If a public holiday falls during a period of paid leave such as annual leave or personal/carer’s leave, the employee must be paid for the public holiday. This includes any hours that fall on a part-day public holiday.

The public holiday will not be counted as annual leave or sick leave. This means the public holiday hours will not be deducted from the employee’s accrued paid leave balance.

Long service leave and public holidays

If an employee is taking long service leave when a public holiday falls, whether they are paid for the public holiday depends on the state or territory legislation that governs their long service leave.

What do employees receive if they don’t work on a public holiday?

Full-time and part-time employees are entitled to be paid at their base rate of pay for the ordinary hours they would have worked on that day but only if the public holiday falls on a day they would normally work.

The base rate of pay does not include incentive-based payments, bonuses, loadings, monetary allowances, overtime, or penalty rates.

If the public holiday falls on a day the employee does not normally work, the employee is not entitled to payment.

What about employees who do work on a public holiday?

If an employee works on a public holiday, they are entitled to be paid at least their base rate of pay for all hours worked. However, under many awards and enterprise agreements, an employee who works on a public holiday may:

• receive a penalty rate or loading for the hours they work, or
• be given time off instead of payment of penalty rates.

Note: An employee’s roster cannot be changed specifically to avoid paying for a public holiday.

Do employees receive superannuation for public holidays?

Payment for public holidays not worked that would have been worked had it not been a public holiday is considered Ordinary Time Earnings (OTE) and is subject to superannuation at the current rate of 12%.

If a public holiday is worked and it falls on a normal working day (not overtime), then the full pay for the day, including any applicable penalty rates, is subject to superannuation.

If a public holiday that is worked is classified as overtime, superannuation is not payable.

Are employees entitled to public holidays during a stand-down?

Yes. Employees who are stood down without pay by their employer under the Fair Work Act 2009 are still entitled to be paid for any public holidays that fall during the stand-down period provided the employee would normally have had ordinary hours of work on that day.

What if an employee is working in a different state on a public holiday?

Employees are entitled to the public holidays observed in the state or territory where they are based for work, not where they happen to be working on the day of the public holiday.

For example, if a Melbourne-based employee is working in Sydney on the day of the Melbourne Cup public holiday, they are still entitled to that public holiday because their job is based in Victoria.

An employee called in sick on a public holiday – is it sick leave or public holiday pay?

If an employee is rostered to work on a public holiday on a day they would normally work and calls in sick, they are paid for that day at their ordinary rate of pay. It is not treated as personal leave (sick leave).

If an employee is rostered to work on a public holiday on a day they would not normally work and calls in sick, they are not entitled to payment for that day.

Can a public holiday be an employee’s last day of employment?

Yes. A public holiday can be the final day of employment. For example, if an employee has given the required period of notice and their last day falls on a public holiday, they should be paid for the public holiday.

Summary table