The Queensland Government has implemented a part-day public holiday from 6pm to midnight on Christmas Eve since 2019. Queensland is the third Australian jurisdiction to implement a Christmas Eve part day public holiday, following similar moves by South Australia and the Northern Territory.
What does this mean for you & your business?
Impact on employees
Employees, such as essential services personnel, retail staff and shop employees who work after 6pm on Christmas Eve are entitled to be paid at public holiday penalty rate.
Public Holiday Penalty Rate
The public holiday penalty rate is usually 250% of an employee’s based rate, depending on the industry or specific award.
As such, employees are entitled to be paid at 2.5 times their normal rate whilst casual employees usually receive their casual loading and penalty rates.
Shift Workers
For shift workers or those with irregular working hours, entitlement to public holiday pay or a substitute day off may depend on whether their work schedule requires them to work on Christmas Eve.
Employers must follow the conditions set out in the employee’s award, enterprise agreement, or employment contract.
Impact on Employers
Employers may face operational challenges when determining whether to operate on Christmas Eve. As a result, clear communication with employees about their working hours and expectations on Christmas Eve is crucial.
Employers who choose to open and trade after 6pm on Christmas Eve must ensure compliance with relevant pay entitlements. This includes:
- ensuring that penalty rates are paid for any hours worked after 6pm on Christmas Eve.
- giving employees a substitute day off, if applicable, in accordance with industrial agreements or the employment contract.
Hospitality Businesses
With hospitality and small to medium sized business sector likely to be most affected, these businesses are already subject to modern awards such as the Fast Food Industry Award 2020 and the General Retail Award 2020, which specify the penalty rates that apply.
Businesses in the hospitality industry have the choice to levy a surcharge on customers to cover costs of increased wages. Alternatively, a business can choose to not stay open after 6pm on Christmas Eve.
Businesses Operating on 24-Hour Cycle
Businesses in the following areas need to operate on a 24-hour cycle in order to meet their customer’s demands.
- manufacturing
- health
- transport
- aviation
- emergency services
- energy
- IT
- maintenance services
- telecommunications
- accommodation
These businesses have little to no opportunity to prepare and budget extra costs that impact business operations on one of the busiest trading days of the year.
However, the part-day public holiday on Christmas Eve will pay for itself in the increase in consumer spending at post-Christmas sales due to increased wages and happiness within the workforce.
Disclaimer:
The information contained in this article is for general informational purposes only and is not intended to provide legal advice or substitute for the advice of a professional. This information does not consider your personal circumstances and may not reflect the most current legal developments. Should you need advice, please contact our firm for targeted information relating to personal your situation.
Greenhalgh Pickard’s Employment Law Team
