Are Sundays Public Holidays In Australia? Pay, Leave And Trading Rules

Sunday trading is now part of everyday life for many Australian small businesses. Cafes, retailers, gyms, tradies, online stores and customer support teams often work weekends because that’s when customers have time (and money) to spend.

But Sundays also bring one of the most common questions we hear from business owners: is Sunday a public holiday?

The short answer is no - a regular Sunday is not automatically a public holiday in Australia. However, there are some important exceptions (especially around Easter), and the difference matters because it can affect:

• how much you need to pay staff
• whether employees are entitled to paid public holiday leave
• whether your business can trade (particularly for certain retail businesses)
• how you roster and manage staffing costs on weekends and public holidays

Below, we’ll walk you through the key rules and practical steps so you can confidently plan your rosters, pay your team correctly, and avoid unpleasant surprises.

Is Sunday A Public Holiday In Australia?

In Australia, public holidays are set by each state and territory. That means the exact public holidays (and what they’re called) can vary depending on where your business operates.

But as a general rule:

• A normal Sunday is not a public holiday.
• Sunday can be a public holiday if a specific public holiday is declared on that Sunday (for example, in many places, Easter Sunday is a public holiday).

So Why Do People Ask “Is Sunday A Public Holiday” So Often?

Many business owners ask this because Sunday penalty rates can feel similar to public holiday rates. But they are not the same thing.

A helpful way to think about it is:

• Sunday is a day of the week (and may attract penalty rates under an award or agreement).
• A public holiday is a specific date that attracts public holiday entitlements (including potentially higher pay and paid time off for eligible employees).

Common Exception: Easter Sunday

Whether Easter Sunday is a public holiday depends on the state or territory - and the rules can change over time. In many jurisdictions it is treated as a public holiday, but the name and entitlements can differ.

From a practical small business perspective, the safest approach is to:

• check the official public holiday list for your state or territory each year, and
• treat Easter Sunday as a “high risk” day for payroll until you confirm what applies in your location (including whether any substitute day rules apply in your state/territory).

If you have staff working in multiple states (or remotely), you may also need to consider which state’s public holidays apply. This can depend on factors like where the employee is actually performing the work, where they’re based, and what the contract or applicable industrial instrument says - so it’s worth getting specific advice if you have a multi-state workforce.

Why It Matters: Sunday Pay Rates Vs Public Holiday Pay Rates

For small businesses, the question “is Sunday a public holiday?” isn’t just academic - it goes straight to your staffing costs.

In Australia, pay rates are usually driven by:

• the employee’s Modern Award (very common in hospitality, retail, admin, cleaning, etc.)
• an Enterprise Agreement (more common in larger workplaces)
• an employment contract (but it generally can’t undercut award minimums)

What that means in practice is:

• Sunday penalty rates may apply even when Sunday is not a public holiday.
• Public holiday rates may apply on a public holiday that falls on any day (including Sunday).

These rates can be significantly different depending on the award, classification level, and employment type (full-time, part-time, casual).

If you regularly roster staff on Sundays, it’s worth having a clear internal payroll process for weekend exceptions and approvals. Many small businesses also build this into their pricing, minimum spend, or weekend surcharges (where permitted and disclosed correctly).

If you’re trying to sanity-check weekend payroll costs, it can help to read up on weekend pay rates and how they interact with awards and penalty structures.

What Do You Need To Pay Staff On A Sunday?

If Sunday is not a public holiday, then you generally pay:

• the employee’s base rate (or casual rate), plus
• any Sunday penalties that apply under the relevant award/enterprise agreement

Because this varies so much, it’s important to confirm the correct award coverage and classification level for each employee.

Step 1: Confirm The Award (Or Other Industrial Instrument)

Most small businesses fall under a Modern Award. For example:

• a cafe might fall under the Hospitality Award
• a shop might fall under the General Retail Industry Award
• a clerical worker might fall under the Clerks Award

The award will usually spell out:

• ordinary hours
• weekend penalties
• public holiday penalties
• minimum shift lengths (important for short Sunday shifts)
• overtime triggers

Step 2: Apply The Correct Sunday Rate

Once you confirm the award and classification, you can check what Sunday rate applies. Many awards apply a higher rate for Sunday work, and that can be different again for casuals.

If you roster staff on Sundays regularly, it’s worth having a documented rostering and payroll process so managers aren’t making “best guesses” on the fly. The rules around Sunday work pay rates can be surprisingly technical once you factor in overtime and minimum engagement periods.

Step 3: Don’t Forget Other Add-Ons That Often Apply On Sundays

Sunday isn’t only about penalties. Depending on your business, you may also need to consider:

• overtime (if Sunday hours push an employee over daily/weekly thresholds)
• allowances (for example, higher duties, split shifts, or industry allowances)
• on-call arrangements if someone is rostered “available” rather than actively working (see on-call allowance)
• break entitlements if shifts are long (meal breaks and rest breaks can be award-specific)

What If Sunday Is A Public Holiday?

If Sunday is a public holiday (for example, Easter Sunday in your state), then you generally need to apply public holiday rules, which can include:

• higher public holiday pay rates for hours worked, and/or
• paid time off for eligible employees who would ordinarily work that day

It’s not safe to assume you can treat it as “just Sunday rates” - you should confirm what applies under the relevant award or agreement (and whether any substitute day provisions apply in your state/territory or industrial instrument).

As a quick sense-check tool when you’re planning labour costs across different days, you might find a public holiday pay calculator helpful (but always cross-check with the employee’s correct award and classification).

Public Holiday Leave: What Happens If A Public Holiday Falls On A Sunday?

This is where a lot of small businesses get caught out - not because they’re trying to do the wrong thing, but because the rules can feel counterintuitive.

Here are the common scenarios to plan for.

Scenario 1: Full-Time Or Part-Time Employee Is Not Working But The Day Is A Public Holiday

If an employee would ordinarily work on that day (for example, they’re regularly rostered Sundays), and the Sunday is a public holiday, they may be entitled to be paid for their ordinary hours even if your business closes.

This doesn’t usually apply to casual employees (more on that below), but it often applies to full-time and part-time employees.

Scenario 2: Employee Works On The Public Holiday Sunday

If they work, they may be entitled to:

• the applicable public holiday penalty rate, and
• in some cases, an alternative arrangement like time off instead of being paid at the higher rate (but only where this is allowed under the relevant award/enterprise agreement and properly agreed and recorded)

Some awards and agreements allow “substitution” of a public holiday or swapping for another day off by agreement. Others don’t, or they may impose strict conditions (such as being in writing, taking the time off within a set period, or paying out unused balances).

If you’re considering time off instead of extra pay, it’s important to do it properly (including having clear records and written agreement where required). Many employers use time in lieu arrangements, but the rules depend heavily on award coverage and the employee’s contract.

Scenario 3: Casual Employees On Public Holidays

Casual employees generally don’t get paid public holiday leave when they don’t work. However:

• if a casual employee works on a public holiday, they may be entitled to public holiday penalty rates under the relevant award/enterprise agreement.

Because casual rates already include a casual loading, it’s especially important not to assume you can “blend” the rates yourself. Always check the award calculation method.

Scenario 4: Public Holidays During Annual Leave

If a public holiday falls during an employee’s annual leave, it may not count as annual leave (it may be treated as a public holiday instead), depending on the circumstances and the employee’s ordinary hours.

Getting this wrong can create underpayment issues or leave balance disputes later. It’s worth having payroll processes that clearly identify public holidays and annual leave overlaps, especially if you operate seven days a week. (For a general overview of how leave payments work, annual leave payments can be a helpful reference point when you’re reviewing your internal processes.)

Trading Rules: Can Your Business Open On Sundays And Public Holidays?

Even if the payroll question is handled, there’s a second layer: trading restrictions.

Whether you can open on Sundays and public holidays depends on your industry and location. Many businesses can trade freely (especially hospitality and essential services), but some retail businesses face restrictions on:

• trading hours on Sundays
• trading on particular public holidays (often “restricted trading days”)
• staffing rules, security, and licensing requirements (especially for licensed venues)

Retail Trading Restrictions Often Vary By State (And Sometimes By Local Area)

Trading rules are typically set by state legislation and can also be influenced by local arrangements and exemptions.

For example, some jurisdictions restrict trading on days like:

• Good Friday
• Christmas Day
• ANZAC Day (often morning restrictions)

And while Sunday itself is usually not treated as a restricted trading day, it can still have regulated trading hours for some businesses.

If your business is expanding into a new location, taking on a lease, or buying an existing retail business, it’s a good idea to confirm:

• what trading hours you’re allowed to operate
• whether you need an exemption
• how these rules affect your staffing model and wage budget

This is also one of those areas where “what competitors do” isn’t always a reliable guide - sometimes businesses are trading under an exemption, or they may simply be taking a compliance risk.

Practical Steps To Stay Compliant (And Keep Sunday Staffing Profitable)

When you’re managing tight margins, Sunday shifts can be a balancing act: you want to capture weekend demand without payroll and compliance blowing out.

Here are practical steps we often recommend to small businesses operating on Sundays and public holidays.

1. Build A “Sunday And Public Holiday” Payroll Checklist

A simple internal checklist can reduce errors and speed up approvals, particularly if you have different managers rostering staff. At a minimum, it should cover:

• Is this Sunday also a public holiday in our state/territory (and is there a substitute day involved)?
• What award/enterprise agreement applies to this worker?
• What classification and pay point are they on?
• Are there overtime triggers based on weekly hours?
• Do minimum shift engagements apply?

2. Get Rostering Rules Right (Before There’s A Dispute)

Weekend rostering becomes much easier when you set expectations early, document availability, and follow the notice requirements in the applicable award/contract.

This is especially important if your Sunday trading depends on demand (for example, weather, events, or seasonal peaks), because last-minute changes can create compliance issues or employee dissatisfaction. Having a clear approach to employee rostering can reduce the chance of misunderstandings.

3. Consider Your Customer Pricing Strategy (Carefully)

Some businesses use weekend surcharges to help cover Sunday penalty rates. Whether that’s acceptable can depend on your industry and how you present the pricing to customers.

If you use surcharges:

• make sure it’s clearly disclosed (for example, on menus or signage)
• avoid misleading pricing practices
• ensure your staff understand when it applies and how to explain it calmly to customers

4. Keep Strong Time And Wage Records

Good records matter if you ever need to respond to a staff question, resolve an underpayment, or show that you’ve applied the correct rate on a Sunday or public holiday.

At a minimum, keep clear records of:

• start and finish times
• breaks taken
• rosters issued and changes made
• the pay rate applied (including penalty/public holiday rates)

5. Plan Ahead For “High-Cost” Dates

Even if most Sundays are not public holidays, there are predictable periods where weekends and public holidays collide (Easter is the classic example).

To stay profitable, you can plan ahead by:

• forecasting sales and staffing needs earlier than usual
• confirming public holiday status for your state/territory (including any substitute days)
• checking whether your award has special rules for particular holidays
• setting customer expectations early (trading hours, bookings, lead times)

Key Takeaways

• Is Sunday a public holiday? In most cases, no - a normal Sunday is not a public holiday in Australia, but a public holiday can fall on a Sunday (such as Easter Sunday in many jurisdictions), and some states/territories may also have substitute day rules.
• Sunday pay is usually governed by Sunday penalty rates in the relevant Modern Award or enterprise agreement, which are different to public holiday rates.
• If a public holiday falls on a Sunday, public holiday pay and leave entitlements may apply for eligible employees, and you should not assume ordinary Sunday rates are enough.
• Casual employees typically don’t receive paid public holiday leave when they don’t work, but public holiday penalty rates may apply if they do work.
• Trading rules (especially in retail) can restrict opening hours on certain Sundays and public holidays, depending on your state/territory and your business type.
• Strong rostering, payroll checklists, and record-keeping help you control Sunday wage costs and reduce compliance risks.

Note: This article is general information only and isn’t legal advice. Awards, agreements and public holiday rules can be complex and can vary by state/territory and individual circumstances.

If you’d like help setting up your employment contracts, pay structures, and rostering processes for Sunday and public holiday trading, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.