Are you ready for Mondayisation?

Holiday Are you ready for Mondayisation?

With Waitangi and ANZAC Day looming, it’s timely for us to consider what the practical impacts are for an employer for payment for working on either the “actual” date of the public holiday and/or the recognised dates.

The Holidays Amendment Act 2013 "Mondayises" Waitangi Day and ANZAC Day should they fall on a weekend in the same way that Christmas and New Year holidays are treated.  Although the Amendment Act was passed some time ago, the first New Zealand businesses are going to be affected is 2015 (Anzac Day).

A number of public holidays are already "Mondayised" under the Act.  If Christmas Day, Boxing Day, New Year's Day or 2 January fall on either a Saturday or Sunday (and that day would not otherwise be a working day), then those public holidays are to be treated as falling on the following Monday or Tuesday.  Similarly under the new "Mondayising" Act, if Waitangi Day or ANZAC day falls on Saturday or Sunday (and that day would not otherwise be a working day for the employee), then those public holidays should be treated as falling on the following Monday.

So what does that mean in practical terms?  To make sure you are complying with the legislation, it’s important to first work out what is a “normal working day for the employee”.  The following then applies:

  • If the holiday falls on a Saturday or Sunday and that day would not otherwise be a working day for the employee, the holiday is transferred to the following Monday so that the employee still gets a paid day off if the employee would usually work on these days
  • If the holiday falls on a Saturday or Sunday and that day would otherwise be a working day for the employee, the holiday remains at the traditional day and the employee is entitled to that day off on pay

For example:

Joe runs a retail store that is open on both ANZAC Day, Saturday 25th April and the following Monday, 27 April.  He has two permanent part time employees, Scott and Mary – Saturday is a normal working day for Scott and Monday is a normal working day for Mary.  Let’s review the different circumstances for paying them:

Scott

  • Saturday is treated as the public holiday for Scott
  • He is entitled to a public holiday for Saturday as that is a normal working day for him
  • If Scott does not work on Saturday, he is entitled to be paid for it
  • If Scott does work on Saturday then he is entitled to payment at 1.5 times his normal rate and an alternative holiday to be taken at a different time
  • Scott is not entitled to a public holiday for the Monday, nor is he entitled to be paid 1.5 times his normal rate if he works on that day

Mary

  • Monday is treated as the public holiday for Mary
  • She is entitled to a public holiday for Monday as that is a normal working day for her
  • If Mary does not work on Monday, she is entitled to be paid for it
  • If Mary does work on Monday then she is entitled to payment at 1.5 times her normal rate and an alternative holiday to be taken at a different time
  • Mary is not entitled to a public holiday for the Saturday, nor is she entitled to be paid 1.5 times her normal rate if she works on that day

In short, employees can only receive the benefits of the public holiday in one event.  In this situation if both Saturday and Monday are a normal working day for the employee, then a choice will be made as to which one will be observed as the public holiday – they don’t receive a benefit for both days.

peoplepassion