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Paying an Employee for Working on this Public Holiday which is their Penal Rate Work Day

This example shows how to add hours worked on a public holiday falling on a penal rate arrangement, plus adding the day of alternative leave to a timesheet.

Updated: June 2024

My employee is working some hours on this public holiday. They would normally work on this day and be paid a penal rate if it wasn't a public holiday.

Let's break down this example.

On this public holiday, this employee is:

Working any number of hours
This day is a day they would normally work if it wasn't a public holiday, according to their work pattern (OWD)
There is a penal rate agreement for this day
The penal rate is MORE than the Holidays Act 1.5x regular rate
 

Info - Blue Block (1)If the penal rate is LESS than 1.5x the employee's normal rate, you have to pay them according to the Holidays Act for hours worked. Follow this link to our article for paying at the 1.5x rate.

  

Their timesheet should have this for the public holiday:

The hours they worked - paid at penal rate
A day of alternative leave added to their leave balance to be used later
 
Here is a timesheet example:
S3Example_OWD Penal_PH Worked
 
  1. Add the custom pay type you've created for the penal rate to the timesheet with the hours they worked added on the day. 
    1. This is an example of this employee's penal rate custom pay type setup:
      S3_PenalRate_PHWorked Example
  2. Add 'Alt Hol [+] (days)' pay type to the timesheet with a 1 added to the public holiday date. This adds one day of alternative leave to the employee's leave balance.