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Why public holidays catch businesses out

Australia packs a punch in the public holiday department, especially in the first half of the year. Easter, ANZAC Day, King’s Birthday and state-based days arrive before the year really finds its rhythm. For small business owners, these dates affect more than trading hours. They shape payroll costs, rostering decisions and legal obligations. Getting it wrong can create expensive headaches that last long after the long weekend ends.

Who gets paid on a public holiday

Full time and part time employees who normally work on the day of a public holiday generally receive payment even if the business closes. Casual employees follow different rules. They only receive pay when they actually work, but awards often require higher rates for that work. The Fair Work Ombudsman sets out how public holidays interact with different employment types and awards, and it is worth checking the guidance before the next roster goes out.

You cannot just swap the day

Some employers try to move a public holiday because another day suits the business better. The law does not allow a simple swap. An employer needs genuine agreement from the employee and the relevant award or enterprise agreement must permit the substitution. A quick message in the staff group chat does not meet that standard.

Asking staff to work the holiday

When a business needs employees to work on a public holiday, the employer must make a reasonable request. Employees can refuse on reasonable grounds. Family responsibilities, personal circumstances, health and safety and the amount of notice all matter. Fair Work provides practical examples of what counts as reasonable, and those examples help businesses avoid conflict before it starts.

Penalty rates matter more than pizza

Public holiday shifts usually attract serious penalties. Many awards require double time or double time and a half. Salaried staff can also trigger extra payments if the salary does not properly cover award entitlements. Promising a team lunch instead of the correct rate might feel generous, but it does not satisfy the legal obligation.

What happens when leave crosses a holiday

Annual leave causes another common trap. If a public holiday falls during a period of annual leave, the employee does not lose a day of leave. The business pays the public holiday as “ordinary hours” and the annual leave balance remains untouched. Payroll systems need the right settings to handle this automatically, otherwise balances and wage costs drift out of line.

Multi-state teams add complexity

Businesses with staff in different states must follow the public holidays for each location. Victoria celebrates days that Queensland ignores and vice versa. The employee’s work location decides the entitlement, not the address of head office. State and territory government calendars provide the official dates and prevent awkward arguments later.

Plan early, stress less

Smart businesses plan public holidays well ahead. They check awards, confirm payroll settings and talk to staff before the diary fills with bookings and deadlines. Clear communication about who will work and what rates apply removes most of the drama. Reviewing contracts and policies at the same time strengthens your position if a dispute arises.

Budget for the real cost

Hospitality, retail and service businesses feel the impact most. A single public holiday can double a wages bill. Building those costs into pricing and cash flow plans keeps the business profitable instead of surprised. Casual-heavy teams need particular care because penalty rates add up fast.

Keep compliance simple

Public holidays should give your team a break, not give the owner heartburn. Accurate payroll settings, up-to-date awards and clear agreements protect everyone. A short review now beats a Fair Work complaint later.

Helpful links

• Fair Work Ombudsman public holiday entitlements
• Reasonable requests and refusals to work public holidays
• State and territory public holiday calendars

Quick action checklist

• Check which public holidays apply to the state each employee works in
• Confirm the correct award penalty rates are loaded in your payroll system
• Review how your software treats annual leave that crosses a public holiday
• Communicate early about who is required to work and get agreements in writing
• Budget for higher wage costs on public holidays, especially for casual teams