Working out when business is “open” in Australia sounds simple - until a deadline lands on a Saturday or a public holiday falls mid-week. Whether you’re issuing invoices, responding to a customer request or sending a contractual notice, understanding what counts as a “business day” (and what doesn’t) helps you stay compliant and avoid disputes.
In Australia, the meaning of “business day” depends on the context. Different laws, contracts and industries use slightly different definitions and rules about how days are counted. That’s why it’s important to set clear definitions in your own documents and know the common approaches you’ll come across.
In this guide, we’ll explain how “business day” is typically defined in Australia, when Saturdays and public holidays are excluded, how timing works in contracts, and the key legal areas this impacts. We’ll also share practical tips on defining business days and business hours in your contracts and policies so you can set expectations confidently.
What Is a “Business Day” in Australia?
There isn’t a single, universal definition that applies in every situation. However, in most commercial and legal contexts across Australia, a business day generally means:
- Any day that is not a Saturday, Sunday or public holiday in the relevant state or territory.
You’ll see this approach in many commercial contracts and in various laws. That said, the exact wording can and does vary - sometimes by statute, sometimes by industry, and often by what the parties have agreed in their contract.
If you’re looking for an overview you can share with your team, this plain-English explainer on what is a business day sets out the common meaning many Australian businesses use.
Does Location Matter?
Yes. Australia’s public holidays differ by state and territory. If you’re operating nationally, or your counterparties are interstate, a contract should say which location determines public holidays for the purpose of counting business days. If your documents are silent, the applicable location may be inferred from the place of performance, the place of sending/receiving a notice or the governing law - which can lead to uncertainty.
What About “Business Hours” vs “Business Days”?
These terms do different jobs. “Business days” are the days of the week that count for deadlines. “Business hours” are the hours within those days when an action will be treated as effective (for example, when an email notice is deemed received).
Because these concepts govern timing, many businesses define them together in a contracts glossary. For practical drafting points, see our guide on defining business working days for contracts.
Do Saturdays and Public Holidays Count?
In most Australian contracts and policies, Saturdays, Sundays and state or territory public holidays do not count as business days unless you’ve agreed otherwise.
- Saturdays: Commonly excluded, even if your business trades on weekends.
- Public holidays: Excluded in the relevant location specified in your contract or policy (for example, “New South Wales public holidays”).
There are exceptions. Parties are free to define “Business Day” to include Saturdays or specific public holiday periods if that suits their industry (for example, logistics or retail peak seasons). If you want Saturdays to count for a particular agreement, it needs to be stated clearly in the definitions section.
Time Zones and “Local Time”
Australia spans multiple time zones and observes daylight saving in some jurisdictions. If your business (or counterparties) operate across states, be explicit about the time zone for “business hours” and deadlines. A common approach is to use the time where a party is located, or to name a single time zone like “AEST/AEDT” or “Perth time (AWST)” throughout the agreement.
How Are Business Days Counted in Contracts?
This is where precision matters. How you count time can change outcomes - for example, whether a payment is considered late or a notice is valid. Here are the common approaches and where they can differ.
“Within X Business Days”
When a contract says an action must occur “within X business days”, it usually means you count forward the specified number of business days from the triggering event, excluding weekends/public holidays as per the definition. Whether you include the day of the triggering event in the count depends on the drafting and any interpretation clause. Many agreements expressly say the count starts on the next business day, but not all do.
Key takeaway: don’t assume there’s a universal rule - check the definitions and interpretation sections of your contract.
“By Close of Business” or “End of Business”
Contracts sometimes refer to “close of business” or “COB”. If not defined, it’s commonly understood as 5:00 pm in the relevant time zone, but practices vary by industry. To avoid doubt, define “Business Hours” (for example, 9:00 am to 5:00 pm on a Business Day) and then tie COB to the end of those hours.
Deadlines That Land on a Non-Business Day
Some contracts state that if a deadline falls on a day that is not a Business Day, the deadline automatically shifts to the next Business Day. Others don’t include this rule, which can create a stricter obligation. Don’t rely on a default - add a clear “next Business Day” rule if that’s your intent.
Notices and “Deemed Receipt”
How and when a notice is “received” can be critical (for example, contract variations or termination). Deemed receipt rules vary widely and can depend on the method (email, post, hand delivery) and time sent. Many contracts state that a notice sent after business hours, or on a day that is not a Business Day, is deemed received at the start of the next Business Day. If the contract is silent, outcomes depend on general law and any applicable statute - which is less predictable than a tailored clause.
Payment Terms
When you set payment timeframes (for example, “payable within 7 Business Days”), make sure the counting method aligns with your cash flow expectations and your invoicing cycle. Clarity here reduces disputes and late payments. If you’re reviewing your standard invoicing approach, it’s worth tightening your payment terms and aligning them with your Business Day definition.
Where “Business Day” Affects Your Legal Obligations
Getting the definition right does more than tidy up wording. It influences deadlines and compliance across your operations.
Customer Promises and Consumer Law
When you commit to timeframes for delivery, refunds or support, the Australian Consumer Law (ACL) expects your promises to be accurate and achievable. If you use fixed periods expressed in business days, those promises should align with your operations and public holiday calendars. It also helps to set handling time expectations in your Website Terms and Conditions and customer-facing policies.
Supply milestones, response times and acceptance testing windows often run in business days. Defining business days and hours helps you avoid arguments about missed cut-offs - particularly across time zones or when messages are sent after hours. If you’re locking in services, a tailored Service Agreement can make these mechanics crystal clear.
Employment Arrangements
Employment contracts may use business days to set probation review periods, notice requirements or pay cycle cut-offs. Different modern awards and enterprise agreements also set rules about hours and penalties that sit alongside your own definitions. To keep things consistent, make sure your Employment Contract and rosters reflect your chosen definitions and the relevant award obligations.
Ordering, Shipping and Returns
Retailers and ecommerce businesses often say orders received after a certain time will be processed on the next Business Day. Stating this in your Terms of Sale (or shipping policy) helps manage expectations during weekends and holiday periods.
Internal Approvals and Board Actions
Internal governance documents sometimes tie approvals and notices to business days too - for example, meeting notice periods. If you’re operating through a company, ensure your internal processes and any Company Constitution (if you have one) are aligned with your definitions and timeframes.
Should You Define “Business Day” and “Business Hours” in Your Documents?
In most cases, yes. Including short definitions of “Business Day” and “Business Hours” in your contracts and key policies is one of the simplest ways to reduce risk. It standardises how you and your counterparties count time and removes ambiguity across time zones and holiday calendars.
What To Cover In Your Definitions
- Business Day: State that it excludes Saturdays, Sundays and public holidays in the specified location (name the state/territory).
- Business Hours: Set a local time range (for example, 9:00 am to 5:00 pm). Tie “close of business” to this end time.
- Time Zone: Name the time zone that applies for deadlines and “deemed receipt”.
- Next Business Day Rule: If a deadline falls on a non-Business Day, state whether it moves to the next Business Day.
- Deemed Receipt: Explain when a notice is treated as received for email, post and courier - and what happens if it arrives after Business Hours.
It’s a small drafting step that goes a long way - especially if your business has interstate teams or you deliver services nationally.
Documents That Commonly Reference Business Days
- Service Agreement: Sets out milestones, response times, acceptance testing windows and invoice due dates in business days and hours.
- Terms of Sale: Clarifies order cut-off times, shipping timeframes and returns handling based on business days.
- Employment Contract: Uses business days for notice periods, probation checkpoints and pay processing dates.
- Privacy Policy: Can include service commitments about responding to access or complaint requests within business days.
- Website Terms and Conditions: Helps set expectations for customer support availability and order processing.
- Shareholders Agreement: Often uses business days for meeting notices, decision periods and completion mechanics in equity transactions.
You don’t need every document on this list, but most growing businesses will rely on several. Aligning your definitions across them keeps your internal team and your customers on the same page.
Avoid These Common Pitfalls
- Assuming a default rule applies: Don’t assume that deadlines always roll to the next Business Day or that “within one Business Day” always begins on the next day. Check and, if necessary, specify.
- Ignoring public holiday differences: If your team/process runs across multiple states, name one location (or time zone) for counting days.
- Leaving “close of business” undefined: If COB matters to you, define it through your Business Hours.
- Forgetting notice mechanics: Deemed receipt rules can make or break a deadline. Spell them out.
Practical Scenarios To Sense-Check Your Drafting
Scenario 1: Friday Afternoon Email
You email a price variation at 6:15 pm Sydney time to a customer in Perth. Your contract says a notice sent after Business Hours is deemed received at 9:00 am on the next Business Day in the recipient’s time zone. In this case, it’s deemed received on Monday 9:00 am AWST - not Friday - which shifts the response window accordingly.
Scenario 2: Deadline Falls on a Public Holiday
Your agreement says a task is due “on 1 October”, which happens to be a public holiday in the relevant state. If your contract also says deadlines move to the next Business Day, you’re covered. If it doesn’t, a strict reading may still expect performance on that calendar date - avoid this by stating the next Business Day rule.
Scenario 3: Weekend Trading, Weekday Deadlines
You operate seven days, but your warehouse only dispatches on weekdays. Your ecommerce policy tells customers that orders placed after 12:00 pm Friday will be dispatched on the next Business Day. That simple line saves weekend dispute headaches and aligns with your freight partner’s cut-offs.
Key Takeaways
- “Business day” in Australia usually means any day other than Saturday, Sunday or a public holiday in a specified state or territory - but the exact meaning depends on the contract or law that applies.
- Don’t assume universal timing rules: how you count “within X business days”, deal with non-business day deadlines or interpret “close of business” all depend on your definitions and interpretation clauses.
- Define “Business Day”, “Business Hours”, time zone and deemed receipt in your contracts to avoid ambiguity, especially if you operate across states or time zones.
- Customer promises, project timelines, payment terms and employment arrangements are all cleaner and easier to enforce when your business day rules are clear.
- Align the definitions across your core documents such as your Service Agreement, Terms of Sale, Employment Contract, Privacy Policy and Website Terms and Conditions.
- If you’re unsure how to set this up, a short review can ensure your definitions and timing clauses support your operations and reduce dispute risk.
If you would like a consultation on defining business days in your contracts and policies, or want your documents reviewed for timing and notice clauses, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
