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Holiday Entitlements

Information on employee rights regarding public holidays, including paid leave and alternative holidays.

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Comprehensive Guide to Public Holiday Entitlements in New Zealand

New Zealand has a well-defined system for public holidays, governed by the Holidays Act 2003. This guide provides an overview of the national regulations, entitlements for employees, employer obligations, and cultural or regional considerations.

1. National Regulations on Public Holidays

New Zealand observes 12 public holidays annually, which are either national or regional. These holidays are legislated under the Holidays Act 2003, ensuring employees are entitled to time off or additional compensation if they work on these days.

National Public Holidays (11 days)

  1. New Yearโ€™s Day โ€“ January 1
  2. Day after New Yearโ€™s Day โ€“ January 2
  3. Waitangi Day โ€“ February 6
  4. Good Friday โ€“ Date varies (Friday before Easter Sunday)
  5. Easter Monday โ€“ Date varies (Monday after Easter Sunday)
  6. Anzac Day โ€“ April 25
  7. Kingโ€™s Birthday โ€“ First Monday in June
  8. Matariki โ€“ Date varies (Mฤori New Year, typically in June or July)
  9. Labour Day โ€“ Fourth Monday in October
  10. Christmas Day โ€“ December 25
  11. Boxing Day โ€“ December 26

Regional Public Holiday (1 day)

  • Anniversary Day: Each region observes its own Anniversary Day, commemorating the founding of the province. Dates vary by region (e.g., Auckland Anniversary Day, Wellington Anniversary Day).

2. Employee Entitlements for Public Holidays

Employees in New Zealand are entitled to specific rights regarding public holidays, whether they work on these days or not.

Key Entitlements

  1. Paid Day Off: If a public holiday falls on a day the employee would normally work, they are entitled to a paid day off at their relevant daily pay (RDP) or average daily pay (ADP).
  2. Alternative Holiday (Day in Lieu): If an employee works on a public holiday, they are entitled to:
    • Time-and-a-half pay for the hours worked.
    • An alternative holiday (a paid day off) to be taken later.
  3. Shift Workers: If a public holiday falls on a shift that spans two calendar days, the holiday is observed on the day the shift starts.
  4. Public Holidays on Weekends:
    • If a public holiday falls on a weekend and the employee does not normally work weekends, the holiday is "Mondayised" (observed on the following Monday or Tuesday).
    • This applies to Christmas Day, Boxing Day, New Yearโ€™s Day, and the Day after New Yearโ€™s Day.

Eligibility for Entitlements

  • Employees must have worked for the employer for at least one day before the public holiday.
  • Casual employees are entitled to public holiday benefits if the holiday falls on a day they would normally work.

3. Employer Obligations and Associated Costs

Employers must comply with the Holidays Act 2003 to ensure employees receive their entitlements. Non-compliance can result in penalties.

Costs for Employers

  1. Time-and-a-Half Pay: Employees working on a public holiday must be paid at least 1.5 times their normal hourly rate.
  2. Alternative Holiday: Employers must provide an additional paid day off for employees who work on a public holiday.
  3. Relevant Daily Pay (RDP): Employers must calculate and pay employees based on their usual earnings, including overtime and regular allowances.

Payroll Considerations

  • Employers must accurately track public holiday entitlements and payments.
  • Payroll systems should account for time-and-a-half rates and alternative holidays.

4. Observing Public Holidays

Public holidays are observed differently depending on the type of business and the region.

Standard Procedures

  1. Business Closures: Many businesses, especially retail and offices, close on public holidays. However, essential services (e.g., healthcare, emergency services) and hospitality businesses often remain open.
  2. Retail Trading Restrictions: Certain public holidays have restrictions on trading hours:
    • Good Friday, Easter Sunday, Anzac Day (until 1:00 PM), and Christmas Day.
    • Exemptions apply to businesses like dairies, petrol stations, and pharmacies.

Mondayisation

  • If a public holiday falls on a weekend, it is "Mondayised" for employees who do not normally work weekends. For example:
    • If Christmas Day (December 25) falls on a Saturday, the public holiday is observed on Monday, December 27.

5. Unique Cultural and Regional Considerations

New Zealandโ€™s public holidays reflect its cultural diversity and regional history.

Matariki (Mฤori New Year)

  • Introduced as a public holiday in 2022, Matariki is a uniquely New Zealand celebration marking the Mฤori New Year.
  • The date varies each year, based on the appearance of the Matariki star cluster (Pleiades) in the winter sky.
  • It is a time for reflection, celebration, and planning for the year ahead.

Regional Anniversary Days

  • Each region observes its own Anniversary Day, commemorating its founding or settlement.
  • Examples:
    • Auckland Anniversary Day: Last Monday in January.
    • Wellington Anniversary Day: Closest Monday to January 22.
    • Canterbury Anniversary Day: Second Friday after the first Tuesday in November.
  • Employees are entitled to a paid day off if the regional holiday falls on a day they would normally work.

6. Practical Tips for Employees and Employers

For Employees

  • Check your employment agreement to understand your entitlements.
  • If you work on a public holiday, confirm your time-and-a-half pay and alternative holiday with your employer.
  • Plan leave around public holidays to maximize time off.

For Employers

  • Ensure payroll systems are updated to handle public holiday entitlements.
  • Communicate with employees about their rights and obligations well in advance of public holidays.
  • Be aware of regional Anniversary Days if you operate in multiple locations.

7. Summary of Key Points

  • New Zealand observes 12 public holidays annually (11 national, 1 regional).
  • Employees are entitled to a paid day off or time-and-a-half pay plus an alternative holiday if they work on a public holiday.
  • Public holidays falling on weekends may be "Mondayised" for employees who do not work weekends.
  • Employers must comply with the Holidays Act 2003 to avoid penalties.
  • Unique holidays like Matariki and regional Anniversary Days reflect New Zealandโ€™s cultural and historical diversity.

By understanding these regulations and entitlements, both employees and employers can ensure public holidays are observed fairly and in compliance with New Zealand law.