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Understanding when business is officially “open” in Australia can sometimes feel straightforward – but as any business owner soon discovers, not all working days are counted equally! Whether you’re negotiating supply contracts, hiring your first employee, or preparing for a customer refund, knowing what is a business day in Australia (and when it actually starts and ends) is crucial for meeting your legal obligations and keeping operations smooth.
Australian law refers to “business days” in a wide range of areas, from employment contracts to consumer guarantees. But do Saturdays count? What are considered normal business hours? And how could these definitions impact your compliance, cash flow, or even the enforceability of your contracts?
In this article, we’ll unpack what exactly defines a business day in Australia, how long one lasts, and what hours typically count as “open for business.” We’ll also walk through main legal considerations so you can protect your business – whether you’re just getting started or looking to tighten up your processes as you grow. We’re here to help you demystify the fine print, set clear expectations, and focus on doing what you do best.
What Does “Business Day” Mean in Australia?
Let’s start with the basics. In Australia, the definition of a business day can vary depending on the law, contract, or context. Generally, a “business day” refers to any day when ordinary businesses and government offices are open for work in the relevant state or territory. But, let’s dive deeper to see what that means in practice.
Business Days: The Standard Legal Definition
Most contracts and laws in Australia – including the Corporations Act 2001, the Australian Consumer Law (ACL), and many banking and employment policies – define a business day as:
- Any day other than a Saturday, Sunday, or public holiday in the place the work is being done (usually your state or territory).
This means weekends and public holidays do not count as business days for most legal and commercial purposes in Australia. For national contracts, a “public holiday” refers to any official state or territory-wide holiday in the location where the obligation is being met or the notice is being sent.
How Long Is 1 Business Day in Australia?
When someone refers to “1 business day”, they mean a standard 24-hour period starting from the beginning of the next business day, not including weekends or public holidays. For example, if a contract requires you to provide a report “within 1 business day” of a request made at 3pm on Friday, you don’t need to respond until Monday (assuming Saturday and Sunday aren’t business days for your industry).
Keep in mind:
- If an obligation falls due on a non-business day, it’s generally considered due on the next business day. For instance, if your invoice is “payable within 7 business days” and the last day falls on a public holiday, payment will be due the next business day after the holiday.
What Counts as Normal Business Hours?
The term “normal business hours” isn’t rigidly defined in law, but standard business hours in Australia are typically:
- Monday to Friday: 9:00am to 5:00pm (local time in your state or territory)
Some industries or businesses may operate outside these hours, but unless a contract or award says otherwise, most legal deadlines assume this is when business is “open” for the purposes of delivery, notice, and communication.
If your business regularly trades outside these hours (such as retail, hospitality, or emergency services), it’s still wise to specify your core business hours in contracts or your Terms & Conditions so both you and your customers are clear on when orders, support requests, or deliveries are processed.
Are Saturdays Considered Business Days in Australia?
In most legal and commercial contexts, Saturdays are not business days in Australia – even if you choose to open your doors or trade online over the weekend. This is important to remember for:
- Calculating payment and delivery deadlines.
- Hiring staff and applying award rates or penalty rates for weekend work.
- Counting days for consumer warranty responses or contract notices.
There are exceptions, though. If you and another party agree in writing that a “business day” will include Saturdays (often seen in retail leasing or logistics), that definition stands. Always check your contract or award carefully, and clarify with stakeholders how you’re counting days – especially if you operate a seven-day business.
Why Does the Definition of a Business Day Matter?
At first glance, defining a business day might seem like a technicality. However, in reality, it affects how you:
- Set and enforce payment deadlines.
- Provide consumer refunds or repairs within required timeframes.
- Meet legal notice periods (e.g., for contract termination, staff dismissal, or workplace changes).
- Calculate leave entitlements or payroll obligations for employees.
- Communicate urgent operational information with customers or partners.
Misunderstanding this simple definition has tripped up many new business owners, sometimes turning simple scheduling errors into expensive legal disputes. Applying the correct “business day” rule means you’re less likely to end up in a disagreement or breach your legal obligations.
How Is a Business Day Calculated in Contracts?
When you sign a contract – whether that’s with a supplier, landlord, employee, or customer – it’s standard to include a definitions clause. If the contract simply says “business day”, the default meaning applies (Monday to Friday, excluding public holidays and weekends). However, businesses can define it differently in their contract to suit their industry needs.
- If you leave the term undefined, courts and regulatory bodies will interpret it using the general legal definition.
- If you want a different arrangement (e.g., include Saturdays as working days for urgent logistics), you should explicitly define “business day” at the start of your agreement.
To avoid confusion (and possible disputes), get your contracts reviewed by a lawyer. Small adjustments in definitions can make a major difference to both risk and cash flow.
Do Public Holidays Count as Business Days?
No, public holidays (in the state or territory where business is conducted) are not considered business days. However, Australia is a federated country with different holidays in different regions, so:
- Always check your state or territory’s official holiday calendar.
- If your business operates in multiple locations, clarify which region’s holiday calendar applies to the relevant contract or event.
This distinction is particularly important for national or online businesses and businesses employing remote teams across Australia.
Key Legal Considerations for Business Days
Setting clear and legally compliant business days is essential, but there are several other areas to consider as you build and manage your business. Let’s go through the main ones you should have on your legal checklist.
1. Drafting Contracts and Terms & Conditions
Whether you’re issuing invoices, privacy notices, or refund policies, be sure your Terms & Conditions and standard contracts specify what “business day” means for your operations. This will reduce the risk of misunderstandings, especially with customers or suppliers operating interstate or internationally.
2. Honour Your Legal Deadlines and Consumer Rights
Australian Consumer Law requires that consumer guarantees (like refunds or repairs) and complaint resolution be managed within “reasonable timeframes” or specific day periods. Know how to count business days when responding to customer claims – calculate any stated deadline as excluding weekends and public holidays, unless you make it clear otherwise and the customer agrees.
3. Employment Law and Working Hours
Standard awards, enterprise agreements, and employment contracts often rely on business days to set out working hours, notice periods, and leave entitlements. If you schedule staff outside of recognised business days (such as Saturday), be aware of penalty rates and additional payroll considerations.
Setting your business’s “ordinary working hours” is key – check the relevant Modern Award or employment contract to ensure your schedules are compliant and that payment and overtime provisions are clear.
4. Resolving Disputes and Notices
Legal notices – such as contract terminations, landlord notices, or staff termination letters – must be served within business days to be valid (unless agreed otherwise). If notices are issued on a Friday, and the next day is a public holiday, they’re generally only deemed received on the following business day. This can affect everything from eviction notices to cooling-off periods or settlement deadlines.
5. Compliance with Industry Regulations
Certain regulated industries – finance, construction, legal, or medical services – may have their own sector-specific rules about what counts as a business day or when official paperwork must be filed. Always confirm with your industry body or get specialist legal advice if in doubt.
Do I Need to Define Business Days in My Legal Documents?
In most cases, yes – it’s beneficial to include a definition of “Business Day” at the start of any important legal contract, policy, or handbook. This sets clear ground rules for everyone involved. For example:
- When drafting your customer contracts, supplier agreements, or service agreements.
- When creating an internal workplace policy or staff handbook that sets out leave or notice periods.
- When engaging in partnerships or joint ventures with organisations that may have different working calendars or operate interstate.
This is especially important if you or your business partners operate across different time zones (for instance, across WA, SA, and NSW).
What Legal Documents Should Small Businesses Have in Place?
Regardless of your trading hours or calendar, robust legal documents are the foundation of any well-run business. Here are key documents that should reference business days and core working hours:
- Service Agreement: Outlines your services, timelines (stated in business days), and payment deadlines.
- Terms of Sale or Standard Terms & Conditions: Sets out transaction times, delivery logistics, refund periods and dispute processes.
- Employment Contract: Specifies working hours, notice periods, and compliance with relevant awards or agreements.
- Privacy Policy: If you collect customer information, clarify when you’re available to respond to privacy enquiries or complaints (generally within business days only).
- Non-Disclosure Agreement (NDA): Where deadlines or notice periods arise, clarify business day definitions to align expectations.
- Shareholders Agreement: For startups with co-founders or investors, ensure that any decision timelines or notice periods refer to business days for clarity.
Not every business will need every document on this list, but most will need several – and tailoring the right ones to your needs is a smart way to avoid hassles down the line. If you’re unsure which contracts or policies should reference business days or want them reviewed, it’s best to seek advice from an experienced small business lawyer.
Does Running an Online Business Change the Definition?
If you operate an ecommerce business, you might wonder: “We’re technically open 24/7 – do business days still matter?” The answer is yes. Australian law expects you to respond to customer requests, returns, or complaints in a “reasonable period” defined by business days, unless you have agreed otherwise.
It’s common to state in your Website Terms & Conditions or FAQ that support is provided “during business days and normal business hours”, outlining specific hours or excluding public holidays if relevant. This gives customers clear expectations and protects you if a customer demands an immediate response on a weekend or public holiday.
Key Takeaways
- A “business day” in Australia is typically any day except Saturday, Sunday, or a public holiday in your local state or territory.
- One business day is a 24-hour period within these standard days; weekends and public holidays don’t count, unless your contract specifies otherwise.
- Normal business hours are generally 9am to 5pm, Monday to Friday, but these can vary by industry and contract.
- It’s crucial to define “business day” in your contracts and policies to avoid confusion, especially if working across states or internationally.
- Consumer law, employment law, and commercial contracts all use business days to set deadlines – get your policies and contracts aligned for compliance and peace of mind.
- Make sure all your key legal documents – such as service agreements, employment contracts, and terms of sale – specify timelines in business days and clarify standard working hours.
- Professional legal advice can help tailor contracts and policies to your business’s unique operations and protect you from costly disputes.
If you would like a consultation on setting up your business documents, clarifying legal requirements for business days, or ensuring you’re operating compliantly, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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