Casual staff are such a valued part of the team, coming in when you need extra hands, that you want to pay them what they are worth. Let's make sure we get their pay right.
Updated: March 2023
With different employment contracts and irregular work patterns, it can seem like a daunting task to figure out what your casual staff should be paid for working on a public holiday. Let's take each component of the payroll step by step.
What minimum entitlements are stated in the Holidays Act 2003?
For working on a public holiday, staff should receive at a minimum: time and a half for their hours worked. That is 1.5x their relevant daily pay. This is true for all staff, even if they are casual, or just employed for working on a public holiday.
What if I pay my casuals a special rate for working on a public holiday?
You may agree to pay your employees a special rate for working on a particular day, such as a public holiday. This special rate is called a penal rate.
For public holidays, this is fine as long as the penal rate is more than the 1.5x regular pay minimum entitlement stated in the Holidays Act.
Employees should be paid the greater of:
- either 1.5x regular pay, OR
- the penal rate stated in the employment agreement.
Employees cannot receive 1.5x their regular pay plus the penal rate provision. It is a one-or-the-other situation.
Do I owe casual staff who only works on a public holiday a day of alternative holidays?
If casual staff are specifically employed to work on public holidays, you normally do not owe them a day of alternative holidays as this is not an otherwise working day for them.
Pro Tip: To test whether it is an otherwise working day for an employee, ask yourself: "If this wasn't a public holiday, would I pay the employee for this day?"
If your answer is yes, it is an otherwise working day.
Links to further information:
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| Public Holidays Flow Chart - Employment New Zealand Website | Public Holidays Information - Employment New Zealand Website |
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