Rules For Working On Public Holidays In Australia

Public holidays are part of the rhythm of working life in Australia. For many people, they’re a welcome break. For others - especially in hospitality, retail, health and essential services - they’re busy trading days that trigger specific workplace rights and obligations.

If you operate a business or you’re rostered across a public holiday, it’s important to understand when pay applies, how penalty rates work, and what the law says about requesting staff to work. Getting these details right helps you stay compliant and fair to your team.

Below, we break down the key rules around working public holidays in Australia in clear, practical terms - including pay for full-time, part-time and casual employees, when an employer can ask you to work, and how time off in lieu fits in.

What Counts As A Public Holiday In Australia?

A public holiday is a day declared by the Commonwealth or by a state or territory as a public holiday. There are national days (like New Year’s Day, Australia Day, Good Friday, ANZAC Day, Christmas Day and Boxing Day) and state or territory holidays (for example, Melbourne Cup Day in Victoria and the Royal Queensland Show Day in parts of Brisbane).

Public holiday entitlements are set out in the National Employment Standards (NES) within the Fair Work Act 2009. Modern awards, enterprise agreements and employment contracts can add to those minimums but can’t undercut them.

Two concepts matter most under the NES:

• The right to be absent from work on a public holiday unless there’s a reasonable request to work.
• Payment for absence at the base rate for ordinary hours if the public holiday falls on a day you would normally work.

States and territories sometimes declare “substitute” or “additional” public holidays (for example, when Christmas Day falls on a weekend). Your entitlement is assessed against the public holiday as it applies in your location and on the day you’d ordinarily work.

Are Public Holidays Paid - And Who Gets What?

Whether you’re paid for a public holiday depends on your work status (full-time, part-time or casual), whether it’s a day you would ordinarily work, and whether you actually worked the day.

Full-Time And Part-Time Employees

• If you don’t work and it’s a day you’d ordinarily work: You must be paid your base rate for your ordinary hours. No penalties or loadings apply to this absence payment.
• If you work: You’re generally entitled to penalty rates for all hours worked on the public holiday, according to your modern award or enterprise agreement. In many sectors, this is commonly double time and a half, but you need to check the specific instrument that applies to your role.
• If the public holiday falls on your non-working day: There’s usually no payment. Some awards or agreements provide a substituted day off or other entitlement - always check the precise terms that apply to you.

Penalty rates are a separate entitlement to the base-rate public holiday absence payment. For a refresher on how multipliers, base rates and loadings operate across different awards, it’s worth reviewing understanding penalty rates in Australia.

Casual Employees

• If you work on the public holiday: You’re paid your casual rate (which includes the casual loading), plus the public holiday penalty specified in your award or agreement.
• If you don’t work: Casuals are not paid for public holidays they don’t work because casuals have no guaranteed ordinary hours.
• If your roster changes: Whether any payment is owed will depend on the award or agreement, including minimum engagement periods and roster change rules. Short-notice cancellations can carry risk - employers should check obligations around cancelling casual employee shifts and minimum notice for shift changes.

Remember, public holiday rules sit alongside your ordinary obligations to comply with the award or agreement that covers your workplace. If you’re unsure which instrument applies, it’s sensible to get advice before you finalise rosters or pay.

Do Employees Have To Work On A Public Holiday?

The Fair Work Act draws a clear line: an employer may request that an employee work on a public holiday, and an employee may refuse that request if either the request is not reasonable or the refusal is reasonable.

In other words, employers cannot simply “require” public holiday work as a blanket rule. There needs to be a request, and both sides have rights depending on what is reasonable in the circumstances.

What Is A “Reasonable” Request Or Refusal?

The law looks at a range of factors, including:

• The nature of your workplace and industry (for example, continuous operations like hospitals, emergency services, petrol stations or hospitality).
• Your role and whether public holiday work is typical for the business.
• Your personal circumstances, such as family or caring responsibilities, or genuine religious or cultural observance.
• How much notice was given to the employee.
• Whether penalty rates or substitute time off are available.
• Any relevant terms in an award, agreement or contract.

For employers, the safest approach is to plan early, communicate clearly and keep the request-and-response process in writing. If you’re updating rosters that touch public holidays, make sure your approach aligns with legal requirements for employee rostering in Australia.

For employees, if you intend to refuse a request, communicate your reasons promptly and professionally. A considered reply that explains your grounds will usually help resolve matters quickly.

Penalty Rates, TOIL And Substituted Days Off

Public holiday compensation often includes more than one moving part. Here’s how the pieces fit together in practice.

Penalty Rates For Work Performed

If an employee works on a public holiday, the applicable modern award or enterprise agreement sets the penalty rate. In many common awards (such as retail and hospitality), the multiplier is double time and a half (250%) of the base rate for all hours worked on the public holiday.

If you’re not covered by an award or agreement, check your Employment Contract to see what has been agreed, while ensuring the arrangement meets or exceeds the NES.

Because penalties vary by classification, day and hours, it’s good practice to verify your instrument’s current rate tables and, where relevant, ensure your arrangements remain consistent with award compliance.

Time Off In Lieu (TOIL)

TOIL is when an employee takes paid time off instead of receiving a penalty rate. TOIL is only lawful if it is permitted by the relevant award or enterprise agreement and the correct process is followed (usually a written agreement for each occasion, with proper record keeping and time taken within a set period).

TOIL cannot be used to reduce statutory minimums unless those award or agreement requirements are met. If your instrument allows it, make sure the TOIL agreement captures the hours worked, when the time off will be taken, and how it’s calculated. For more on lawful alternatives to penalties and overtime, see time in lieu and how Australian employers can use it legally.

Substituting A Public Holiday

“Substitution” means agreeing that another day will be treated as the public holiday. This can happen by agreement between an employer and an individual employee, or under an award or enterprise agreement (often with consultation requirements). Substitution doesn’t remove the entitlement - it moves it to a different day. Always check your instrument for the required process and any limits.

When A Public Holiday Falls On A Day Off

If the public holiday falls on a day that is not part of the employee’s ordinary hours (for example, they never work Mondays and the holiday is on a Monday), there’s usually no payment. Some instruments provide a substitute day off or another entitlement - again, you’ll need to check the terms that apply to your workplace.

Rostering, Notice And Record-Keeping: Employer Responsibilities

Public holidays are manageable with good planning. Here are practical steps for employers to stay compliant and avoid disputes.

Plan And Communicate Early

• Map upcoming public holidays for the year in each state or territory where you operate.
• Consult with your team about availability on expected trading days and note any personal circumstances that could affect reasonableness.
• Issue draft rosters with plenty of lead time and keep a clear written record of any requests to work, responses received, and agreements reached.

Where changes are needed, be mindful of minimum notice for shift changes set out in your award or agreement. Short-notice changes can create compliance risks and morale issues, so aim to finalise rosters early.

Apply The Right Rates And Rules

• Check the exact public holiday rates under the relevant instrument for each classification and type of shift.
• Confirm how the instrument treats part-day holidays, substitute holidays and split shifts.
• Ensure any TOIL arrangements meet the written agreement and timing rules in your instrument.
• For casuals, be careful with cancellations and stand downs - obligations around minimum engagements and cancelling casual shifts can still apply on public holidays.

Keep Robust Records

• Record which day is treated as the public holiday for each employee and whether they worked or were absent.
• Maintain timesheets and payroll records that clearly show penalty rates or TOIL taken.
• Retain written requests, responses and agreements for public holiday work.

Clear, consistent paperwork supports compliance and helps resolve questions quickly if they arise.

Put The Right Documents In Place

Written documents set expectations and reduce misunderstandings. At a minimum, consider having:

• Employment Contract: Clear terms on ordinary hours, rostering, and how public holiday work is handled. Tailor this for full-time, part-time and casual roles using the appropriate employment contract.
• Workplace Policies: A Staff Handbook or policies that explain rostering processes, public holiday requests, TOIL procedures, and who approves leave.
• Rostering Procedures: Internal guidelines that align with your award or agreement so managers know what notice and consultation is required.

Having these documents properly drafted and kept up to date makes compliance simpler and consistent from one public holiday to the next.

When To Get Help

If you’re unsure which instrument applies, how to structure TOIL, or how to apply penalties correctly, it’s safer to get advice before you pay your team. An experienced employment lawyer can review your set-up, confirm the correct obligations, and help you implement practical systems that fit your business.

Useful Links Within Sprintlaw

• Understanding penalty rates in Australia helps you double-check multipliers and base rates.
• Legal requirements for employee rostering in Australia outlines consultation and notice rules you’ll rely on when scheduling public holidays.
• Minimum notice for shift changes in Australia and cancelling casual employee shifts explain change and cancellation obligations that commonly arise around public holidays.
• Use an Employment Contract and a Staff Handbook Package to lock in the settings your team can rely on.
• If you’re uncertain about award coverage or compliance, speak with an employment lawyer for tailored guidance.

Key Takeaways

• Under the NES, employees have a right to be absent on a public holiday and to be paid their base rate for ordinary hours if the holiday falls on a day they ordinarily work.
• Employers may request public holiday work; employees may refuse if the request isn’t reasonable or the refusal is reasonable. It’s not a blanket requirement to work.
• If an employee works, penalty rates apply as set by the relevant award or enterprise agreement; TOIL is only lawful if your instrument permits it and you follow the required process.
• Casuals are paid only for hours worked, with public holiday penalties on top of the casual rate where applicable; take care with short-notice cancellations and minimum engagements.
• Substituted public holidays and entitlements when the holiday falls on a non-working day depend on your award, agreement or contract - always check the exact terms.
• Plan rosters early, communicate requests and responses in writing, apply the correct rates, and keep thorough records to stay compliant and avoid disputes.

If you would like a consultation on working public holidays in Australia, or help setting up compliant employment contracts and workplace policies, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.