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Holidays & Paying Staff over the Xmas period

By SmartPayroll | December 6, 2016

Christmas & New Year Public Holidays

Employees should be paid for any Christmas and New Year’s public holiday that falls on a day which the employee would otherwise be working (this includes employees who are on a ‘closedown’ period). Under Mondayisation legislation, public holidays that fall on the weekend can be ‘moved’ to the following Monday or Tuesday.

This year both Christmas Day (25th December) and New Year’s Eve (1st January) fall on Sunday.

The Mondayisation legislation states that:

  • If one of the Christmas or New Year public holidays falls on a Sunday, and the employee normally works on Sunday, the public holiday will be on the Sunday for that employee.
  • If one of the Christmas or New Year public holidays falls on a Sunday, and the employee does not normally work on a Sunday, then that public holiday will be observed on the following Tuesday for that employee.

If an employee would normally work on the Sunday which the holiday actually falls their public holiday benefits will apply to that Sunday calendar date.

If an employee does not normally work on a Sunday, then the employee’s public holiday will be moved to the next Tuesday (27th December and/or 3rd January).

Where employees work both the Sunday and the possible Tuesday, they will receive their public holiday benefits for the Sunday. They are not entitled to two public holidays for each occasion. This can mean that the holidays fall on different days for employees who have different work patterns.

To help you determine the Mondayisation of Public Holidays, here’s a handy flow chart from MBIE:

Mondayisation of Public Holiday's Flow chart
(Click to view full-size Mondayisation PDF)

Further Information

Find out more about Holidays Act compliance in our previous blog post.

Read about how our SmartPayroll apps can help manage payroll even if you’re not in the office during the Christmas period.

 

Thanks to our friends at Employers Assistance for providing this article.