Public Holiday Rates in Victoria: Employer Obligations

Public holidays can be great for sales and team morale - or a headache for payroll if you’re not prepared.

In Victoria, your public holiday pay obligations depend on whether someone works, their employment status (full-time, part-time or casual), and what their modern award or enterprise agreement says.

The good news is, with a simple plan you can roster confidently, pay the correct public holiday rates, and stay compliant with Fair Work rules.

In this guide, we’ll step through how public holiday rates work in Victoria from an employer’s perspective, what’s “reasonable” when you ask someone to work, and the key systems to put in place so you don’t get caught out.

What Are Public Holiday Rates In Victoria?

“Public holiday rates” are higher pay rates that apply when an employee works on a declared public holiday in Victoria. These are a type of penalty rates set by modern awards or enterprise agreements, not by a single statewide number.

So, there isn’t one universal public holiday rate across Victoria. Instead, you must apply the public holiday clause in the correct award (or your registered enterprise agreement). Common awards set public holiday work at a multiple of the base rate (for example, double time and a half), but the exact figure and conditions vary by award and role.

If your business isn’t covered by an enterprise agreement, check the modern award that applies to the employee’s classification. Then, cross-check any special conditions - such as minimum engagements, substitute day rules, or whether the public holiday rate interacts with overtime.

Tip: It’s wise to confirm numbers with the official tool before running payroll. Many employers use the Fair Work Pay Calculator for a quick sense-check.

Who Gets Public Holiday Pay In Victoria?

Your obligations differ depending on whether the employee works the day and their employment type. The National Employment Standards (NES) set the baseline, and awards or enterprise agreements add the detail.

If The Employee Works On The Public Holiday

• Full-time and part-time employees are paid their award or agreement public holiday rate for hours worked on the day.
• Casual employees are also paid the applicable public holiday rate for hours worked. In many awards, the casual loading still applies on top of the public holiday penalty, but you need to check the wording in the specific award.

If The Employee Does Not Work On The Public Holiday

• Full-time and part-time employees are entitled to be paid at their base rate for their ordinary hours if the public holiday falls on a day they would usually work. This is “public holiday pay” (not a penalty rate) for being absent on a public holiday.
• Casual employees generally don’t receive payment if they don’t work, unless your enterprise agreement or contract says otherwise.

Remember, “base rate” for a paid absence does not include penalty rates or loadings unless your award or agreement specifies it. This is different from the higher rate for actually working on the day.

What About Weekend Public Holidays?

In Victoria, some public holidays may fall on a weekend. Awards often spell out how rates apply, whether there’s a substitute weekday, and if different rules apply for Sundays. If you operate weekend shifts regularly, it’s worth reviewing your public holiday clauses alongside your usual weekend pay rates to make sure your payroll system handles both scenarios correctly.

Asking Employees To Work On A Public Holiday: What’s “Reasonable”?

Under the Fair Work Act, you can request an employee work on a public holiday if the request is reasonable, and the employee can refuse if their refusal is reasonable. This is a balancing test - not a blanket “yes” or “no”.

What Makes A Request “Reasonable”?

Factors include your operational needs, the nature of the work (e.g. hospitality and retail often trade on holidays), employee personal circumstances, any notice given, and what the award or agreement says. If trading on public holidays is core to your business model, that can support the reasonableness of a request - especially if your Employment Contract and roster practices are clear about public holiday work expectations from the start.

Best Practices When Requesting Public Holiday Work

• Give as much advance notice as you can - sudden public holiday shifts are more likely to be disputed.
• Use a fair process if you have volunteers or rotating public holiday rosters.
• Be consistent with your rostering rules and apply the applicable award clauses (including minimum engagements).
• Document any agreements to substitute a public holiday or provide alternative leave arrangements in writing.

If a team member refuses, assess the refusal against the same “reasonableness” factors and seek a practical resolution - for example, swapping shifts, offering a substitute day, or splitting hours across the boundary of the day if permitted by your award.

How To Calculate Public Holiday Rates (Full-Time, Part-Time, Casual)

Every payroll team wants one simple formula. In practice, you need to follow your award or enterprise agreement step by step. Here’s a practical, employer-friendly process you can adopt each time a Victorian public holiday is coming up.

Step 1: Confirm The Public Holiday And Your Trading Plan

Check the Victorian Government’s list of public holidays for the year, including any region-specific dates. Decide whether you will open, run with reduced hours, or close entirely - and for which parts of the business.

Step 2: Identify The Applicable Instrument

For each role, confirm whether an enterprise agreement applies. If not, confirm the correct modern award and classification level. Public holiday clauses sit in those documents and control the rates and conditions.

Step 3: Check The Public Holiday Clause

Look for the following details in the award or agreement:

• The multiplier for hours worked on the public holiday (e.g. double time and a half) and whether casual loading is also payable.
• Minimum engagement periods on public holidays.
• Substitution rules (can the day be substituted by agreement?).
• Interaction with overtime - some instruments replace overtime with the public holiday rate; others allow certain loadings to stack. Don’t guess - read the clause carefully.

Step 4: Apply The Correct Rate By Employee Type

• Full-time/part-time: If they work, pay the public holiday penalty rate for actual hours worked. If they don’t work and it would have been an ordinary working day, pay the base rate for those ordinary hours (no penalties unless the instrument says otherwise).
• Casual: If they work, pay the public holiday penalty rate and, where the award allows, the casual loading. If they don’t work, there’s typically no payment unless your agreement or contract provides it.

Step 5: Consider Alternatives Like TOIL Or Substitution

Some awards allow an employee and employer to agree to take time off in lieu (TOIL) instead of a penalty rate, or to substitute a different day off when a public holiday is worked. Follow the exact requirements for any agreement (for example, confirm the agreement in writing, keep it in your records, and track the accrual and use-by periods).

Step 6: Sanity-Check And Record-Keeping

Before finalising payroll, verify your calculations using the Fair Work Pay Calculator. Keep clear records of rosters, any substitution or TOIL agreements, and the award clauses relied on, in case of later audit or dispute.

Managing Rosters, Substitutions And TOIL

Getting your roster right makes public holiday compliance much easier - and helps you avoid short-notice changes that can look unreasonable.

Rostering For Public Holidays

• Set and share rosters early. Advance notice supports reasonable requests and gives staff time to plan.
• Check minimum engagement periods for public holidays under your award - they can differ from ordinary days.
• Where possible, avoid splitting shifts awkwardly across midnight. If you must, document how you’ll treat hours that cross into or out of the public holiday.
• If you change rosters, ensure you comply with your award’s rules on shift changes and notification periods.

Substituting A Public Holiday

Many awards and the NES allow substitution of a public holiday by agreement with an employee. A substitution can be useful if you’re closed on the day but still want to recognise the entitlement, or if an employee prefers a different day due to personal circumstances.

If your award or agreement allows it, record the substitution in writing, specify the date, and explain how it affects pay or leave balances. Keep the agreement with your time and wages records.

Using TOIL Instead Of Penalty Rates

Some instruments let you agree to TOIL rather than pay the penalty. If so, confirm:

• How TOIL is accrued (e.g. hour-for-hour or at the penalty rate multiple).
• Any time limits to use TOIL.
• What happens if TOIL isn’t taken within the set period (often it must be paid out).

Because TOIL rules are technical, it’s smart to bake your approach into your policies and Employment Contract templates, and check your instrument before offering it to staff on public holidays.

Payroll And Compliance Checklist For Victorian Public Holidays

Here’s a quick, employer-focused checklist you can use ahead of any Victorian public holiday.

1) Confirm Your Trading Plan

• Open as usual, reduced hours, or closed?
• Which locations are affected (note any region-specific holidays)?

2) Map Roles To Instruments

• For each role, list the applicable enterprise agreement or award and classification.
• Highlight the public holiday clause, minimum engagements, and substitution/TOIL rules.

3) Prepare The Roster And Notices

• Publish rosters with ample notice; use a fair approach for allocating holiday shifts.
• Check breaks and minimum engagements against your award and your meal break obligations.

4) Update Payroll Settings

• Load the correct multipliers and casual loading settings for the holiday period.
• Add any bespoke rules for cross-midnight shifts if your system requires them.
• Run a test with one roster scenario and confirm totals via the Fair Work Pay Calculator.

5) Document Agreements

• Record written agreements for any substitution or TOIL arrangements and store them with pay records.
• Make sure your policy and contract templates reflect how your business manages public holidays, TOIL, and rosters.

6) Keep An Eye On Award Changes

Awards do change. Build a routine to check for updates, and consider a periodic award compliance review so your payroll and rostering rules stay current.

Common Pitfalls To Avoid

• Assuming there’s a single “public holiday rate” for all staff - it’s instrument-specific.
• Paying the wrong rate for casuals by accidentally excluding the casual loading where the award requires it.
• Overlooking minimum engagement periods unique to public holidays.
• Stacking overtime and public holiday penalties when the instrument says one replaces the other (or vice versa).
• Changing rosters late without considering notice obligations and reasonable refusal risks.

If your team frequently works outside standard hours, it also helps to revisit your overtime settings and how they interact with holiday penalties under your award. A quick refresher on overtime rules and your instrument’s public holiday clause can prevent unintended underpayments.

Key Takeaways

• Public holiday rates in Victoria come from modern awards or enterprise agreements - there’s no single statewide rate.
• If a full-time or part-time employee doesn’t work and the day is one they usually work, they’re paid their base rate for ordinary hours; if they do work, apply the public holiday penalty in the instrument.
• Casuals are paid the instrument’s public holiday rate for hours worked and, in many awards, the casual loading applies as well.
• A request to work on a public holiday must be reasonable; give notice, roster fairly, and consider personal circumstances.
• Use clear policies, strong Employment Contract templates, and accurate payroll settings to manage substitution, TOIL and minimum engagements.
• Sense-check pay with the Fair Work Pay Calculator and schedule periodic award compliance reviews to avoid underpayments.

If you’d like a consultation on public holiday rates and payroll compliance for your Victorian business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.