Working On Public Holidays: Employer Rules In Australia

Public holidays can be a big opportunity for small businesses. For some industries, they’re your busiest (and most profitable) trading days. For others, they’re a day you’d rather close the doors and avoid staffing headaches.

Either way, if your team is working on public holidays in Australia, there are specific rules around employee entitlements, penalty rates and allowances, and when you can (and can’t) require someone to work. If you get it wrong, the risk isn’t just unhappy staff - it can mean underpayment claims, Fair Work disputes, and compliance issues that cost you far more than the day’s revenue.

Below is a practical employer-focused guide to help you plan ahead, roster confidently, and stay compliant.

What Counts As A Public Holiday In Australia (And Why It Matters For Payroll)

In Australia, public holidays are set by each state and territory (and there are also national public holidays). That means the public holidays your business needs to account for can change depending on where your employees are actually working.

As an employer, it’s important to confirm:

• Which public holiday applies in your state/territory (and whether it’s a statewide holiday or a local/regional one)
• Whether the holiday has been moved (for example, if it falls on a weekend and there is a “substitute day”)
• What your employee’s Award or enterprise agreement says about working on a public holiday (including pay rates, allowances and whether time off in lieu is available)

One common issue for small businesses is assuming the same rules apply across Australia. For example, if you have staff in NSW and QLD, or remote employees working from different states, the public holiday calendar might not match for everyone.

Do Part-Time Employees Get Public Holidays?

Part-time employees generally have public holiday entitlements if the public holiday falls on a day they would normally work. If the public holiday falls on a day they don’t ordinarily work, they may not be entitled to be paid for that day - but this can depend on the industrial instrument that applies (and the employee’s roster pattern).

Do Casual Employees Get Public Holidays?

Casual employees aren’t usually paid for time not worked on a public holiday (because they don’t have paid leave entitlements in the same way permanent employees do). But if they do work on the public holiday, they may be entitled to public holiday penalty rates (and sometimes other loadings) depending on the applicable Award or enterprise agreement, and their classification.

Can You Require Employees To Work On A Public Holiday?

This is one of the most common “manager on duty” questions we see: can you roster someone on and expect them to show up?

Under the Fair Work framework, the general rule is:

• You can request an employee to work on a public holiday, but
• The employee can refuse if the request is not reasonable, or their refusal is reasonable.

Whether something is “reasonable” depends on the circumstances. Factors often include:

• the nature of your business and operational requirements (for example, hospitality vs professional services)
• the employee’s role and usual work patterns
• the amount of notice given
• the employee’s personal circumstances (caring responsibilities, religious observance, etc.)
• health and safety considerations (fatigue, excessive hours, etc.)
• the employee’s entitlements to penalty rates or other compensation

From a practical perspective, your goal is to build a process that is fair and predictable: give enough notice, document the request, and apply your approach consistently.

What If An Employee Refuses A Public Holiday Shift?

If an employee refuses, your next step should be to work through whether their refusal is “reasonable” in the circumstances and what your industrial instrument requires. Jumping straight to disciplinary action can be risky if the refusal is protected.

If you’re unsure, it’s often worth checking your contracts and workplace policies first, and getting advice before escalating.

Pay Rates And Entitlements: What You Need To Check Before Rostering Public Holidays

When it comes to working on public holidays in Australia, pay is where things most commonly go wrong - usually because the correct rate depends on the employee’s classification and the instrument that covers them.

In most small businesses, an employee’s minimum pay rates and key entitlements come from one of these:

• a Modern Award
• an enterprise agreement
• the National Employment Standards (NES) and an employment contract (for Award/agreement-free employees)

Before you roster public holiday work, you’ll want to confirm:

• Is the employee entitled to public holiday penalty rates (or other loadings/allowances)?
• Is there a minimum engagement? (especially relevant for casuals in many Awards)
• Are there extra loadings? for certain times (night shifts, weekends, or overtime)
• Is time off in lieu (TOIL) allowed? If yes, what are the rules for agreeing to it?

If you want a quick sense check when budgeting a holiday roster, a public holiday pay calculator can help you estimate costs - but you still need to confirm the exact entitlement under the right Award/agreement (if any) and your employee’s classification.

Do You Have To Pay Staff If They Don’t Work On A Public Holiday?

Often, yes - for full-time employees, and for part-time employees where the holiday falls on a day they would ordinarily work. But this is not always a simple “yes/no” answer, because it depends on:

• the employee’s employment type (full-time, part-time, casual)
• their ordinary hours and roster pattern
• the applicable Award/agreement rules (if any)

Can You Offer A Day In Lieu Instead Of Paying Public Holiday Rates?

Sometimes. Some Awards and agreements allow you to agree to an alternative arrangement (like a substituted day off, or time off in lieu). The key is that it generally must be agreed properly, and often in writing.

If you’re considering “substitute day” arrangements or time off in lieu, it’s worth making sure your documentation is clear - and that it lines up with the relevant Award terms.

Rostering, Notice And Shift Changes: The Compliance Steps That Save You Headaches

Even if you pay correctly, rostering on public holidays can still cause legal and operational issues if you don’t manage notice periods and communications well.

Three areas that commonly trip up small businesses are:

• insufficient notice of the public holiday roster
• last-minute shift changes
• cancellations when trade is quieter than expected

Give Clear Notice And Put It In Writing

A good starting point is to set expectations early: when will the public holiday roster be published, how do employees confirm availability, and how do you handle shift swaps?

This is where having a consistent rostering approach matters. If you’re regularly moving shifts around, make sure you understand your legal obligations around employee rostering, including any Award consultation or notice requirements.

Be Careful With Last-Minute Shift Changes

Many Awards include minimum notice periods for roster changes (or require consultation). If you change start/finish times, reduce hours, or move someone to a different day, you may need to give a certain amount of notice - and you may need the employee’s agreement.

If your business has variable trading conditions (for example, weather-dependent foot traffic), it’s still important to build a compliant process around shift change notice.

Know The Risks Around Cancelling Public Holiday Shifts

Public holidays can be expensive to staff, so it’s understandable that you might want to cancel shifts if trade drops.

However, cancellations can trigger obligations depending on the applicable Award and how much notice you give. It’s also a common source of employee complaints, particularly for casual staff who may have counted on the shift.

If you’re setting rules for when you can cancel, update your processes around a shift cancellation policy, and make sure it aligns with the Award and any contractual commitments you’ve made.

Don’t Forget Record-Keeping

Public holiday compliance is much easier to demonstrate if you keep clear records, including:

• rosters and any roster change communications
• time and attendance records
• written agreements for any substituted public holidays or time off in lieu (if applicable)
• pay slips showing public holiday penalty rates (where required)

Good record-keeping doesn’t just help if there’s a dispute - it also helps you run payroll accurately and consistently.

Common Public Holiday Scenarios For Small Businesses (And How To Handle Them)

Every workplace is different, but these scenarios come up again and again for small businesses. Here’s how to think about them from a practical, risk-managed perspective.

Scenario 1: You Want Everyone Available For A Public Holiday Trading Day

If your business relies on public holiday trading (for example, retail, hospitality, tourism), you can set the expectation that public holidays are ordinary trading days for your business.

The safest way to do that is to ensure your expectations are clearly reflected in:

• your Employment Contract (for permanent staff) or casual contract terms
• your rostering policies and onboarding materials
• any communications about peak periods and availability requirements

Even then, remember that a “requirement” to work on a public holiday can still be challenged if the request is not reasonable in the circumstances. Clear documentation helps, but you should still approach each refusal case-by-case.

Scenario 2: You Have A Skeleton Staff Roster And Need Volunteers

Many small businesses manage public holidays by asking for volunteers first, then filling the remaining slots fairly. If this is your approach, it helps to have a consistent method, such as:

• asking for expressions of interest by a set deadline
• allocating shifts based on skills/experience required for the day
• rotating public holiday allocations so the same people aren’t always rostered on

This kind of system can reduce disputes and improve employee trust - especially if your team feels public holiday work is shared fairly.

Scenario 3: An Employee Agrees To Work, Then Calls In Sick

If an employee is sick on a public holiday shift, you should manage it like any other sick leave situation: confirm what evidence you can request, apply your policy consistently, and record the outcome.

It’s also worth knowing that disputes often arise around evidence requirements, particularly when the day attracts penalty rates. Having a clear process (and making sure it matches your Award obligations) will help you manage it confidently.

Scenario 4: Your Business Operates Across Weekends And Public Holidays

Many businesses run seven days a week, which means public holiday rostering often overlaps with weekend work, shift penalties, and overtime rules.

If you’re regularly rostering staff on weekends and public holidays, check that your payroll settings and classifications are correct. Even small errors repeated over time can turn into a costly underpayment issue.

As part of that review, it can help to understand your baseline weekend obligations too, including weekend pay rates, so you’re not treating public holidays as “just another weekend day” when they’re not.

Scenario 5: You Need To Change Meal Breaks Or Shorten Shifts On A Busy Public Holiday

On busy trading days, it can be tempting to “push through” breaks or shorten them to keep up with demand. This is another area where Awards often have strict rules, and where small businesses can be exposed if employees later claim they weren’t given proper rest.

If public holiday trade creates pressure on your staffing model, check your obligations around Fair Work breaks and build your roster to comply (for example, by adding a floating break relief person or staggering meal breaks).

Key Takeaways

• Public holidays are state/territory-based, so the rules that apply can change depending on where your employees work and whether a substitute day applies.
• You can request employees to work on a public holiday, but refusals may be lawful depending on whether your request (and their refusal) is reasonable.
• Public holiday pay rates and entitlements are instrument-driven - check the applicable Modern Award or enterprise agreement (if any), and the employee’s classification before rostering.
• Time off in lieu or substituted public holidays may be possible, but you generally need to document the agreement and follow Award/agreement rules.
• Rostering, notice, and shift cancellations matter - last-minute changes can create compliance risks even when you pay correctly.
• Clear contracts, policies, and records make public holiday staffing easier, reduce disputes, and support payroll accuracy.

Important: This article is general information only and not legal advice. For advice about your specific situation, get in touch with a lawyer.

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