Payroll – Christmas and Public Holidays

Christmas is a time of sun, sand, lots of food and family time here in the Southern Hemisphere.  Ensuring employees get paid right for the public holidays however can be a challenge for those employing staff.   We thought we would put together some examples to help you on with navigating the challenges of the Christmas payroll this year.

PUBLIC HOLIDAYS THAT FALL ON SATURDAY 

How to work out pay and holiday entitlements for a calendar date public holiday falling on a Saturday, as Christmas does this year.
Examples:

Christmas falls on Saturday – employee normally works Saturday

Sharon has a part-time job at a service station. She normally works on a Saturday and 25 December is a Saturday on this occasion. The service station opens on Christmas Day. The Christmas Day public holiday won’t be Mondayised for Sharon because 25 December is a normal working day for her and she will either get:
  • 25 December as a day off on her relevant daily pay or average daily pay, or
  • she can work on 25 December and be paid at a rate of at least time and a half for the hours she works and she will also get an alternative paid holiday day to use in the future.
If Sharon works on Monday 27 December, she:
  • would be paid for the hours she works at whatever rate she would normally be paid for working on a Monday, and
  • would not receive an alternative days paid holiday to use in the future for working on Monday 27 December because this is just a normal Monday for Sharon.

Christmas falls on Saturday – employee works Monday to Friday

Paul also works at the service station. He works full-time and normally works Monday to Friday. 25 December is a Saturday which is not a normal working day for Paul, so the Christmas Day holiday is Mondayised for him. He will either:
  • have Monday as a day off on his relevant daily pay or average daily pay or
  • he can work on Monday and get at least time and a half for the hours he works and also get an alternative paid holiday day to use in the future.
Paul will not get any payments (or alternative holiday) in relation to Saturday (25 December) unless he works on that day. If Paul did work on Saturday 25 December, because Saturday is not a normal working day for him, he would:
  • be paid for the hours he does at whatever rate he would be paid for any other Saturday he worked, and
  • not get an alternative holiday for working on Saturday 25 December.
Paul’s employer should explain this to him before Paul agrees to work on 25 December, so that he understands that he won’t be paid at time and a half and won’t get an alternative holiday for working on 25 December.

So the same goes for Boxing Day being a Sunday, and Tuesday, the alternative day for Boxing Day.

If you need assistance, feel free to contact us for support
The Small Business Training Hub is delivering training for Small Business Owners in February on Payroll Essentials – all you need to know as a Employer.  Check out the information on our website and come join us so you are not left in the dark when it comes to paying your staff.
Need support with your business? Our Free Resources will Help