The Public Holiday of Labour Day is upon us again this month, observed on Monday the 27th October. Commemorating the eight-hour work day it is always observed on the fourth Monday in October.
If an employee works for any part of a Public Holiday, they must be paid at least 1.5x their normal rate for the actual hours worked.
A decision then also needs to be made as to whether or not they qualify for an entire alternative holiday in lieu. That comes down to whether or not the Public Holiday is an "Otherwise Working Day".
Otherwise Working Day (OWD)
An OWD is a day where in all normal circumstances the employee would expect to be working. With most workers it is clear, but with some, usually casuals, it might not be. In which case agreement should be sought with the worker. A useful resource to aid the decision is available here on the Government website:
www.employment.govt.nz/assets/uploads/documents/leave-and-holidays/Factors-to-use-to-decide-whether-a-day-is-an-otherwise-working-day.pdf
The underlying concept is that everyone is entitled to the Public Holidays. If it is not an OWD then presumably the worker has elected to work instead, thus no alternative holiday is due to them as it was their choice.
If it is an OWD and they worked, they possibly didn't have the choice due to their employment agreement, hence they should get an alternative holiday instead. Note that the alternative holiday is a whole day. Even if the employee only worked an hour, it is a whole day in lieu.
Alternative Holidays
Alternative holidays can be paid out to staff upon request if 12 months have elapsed since the entitlement, and it remains untaken. As per normal with holidays, the employer can direct the worker to take the alternative day if agreement cannot be achieved on date after consultation and given 14 days' notice. Alternative days are paid at Relevant Daily Pay (or average if appropriate).
An employer can require an employee to work on a Public Holiday if that day is a OWD for the Employee, and providing they have that provision in the employment agreement.
For further information on Public Holidays, definitions and calculations of Relevant Daily Pay please see our eBook on Annual Holidays & Leave available in the Library of the Employers Toolbox or here for non-members.