Understanding Australian Public Holidays: What Employers Need to Know

Public holidays in Australia are more than just days off — they come with legal obligations for business owners, especially in the hospitality industry where trading doesn’t always stop.

Let’s break down when public holidays occur, how they differ by state, and when employees must be paid.

NOTE: The information in this article is for reference only. Refer to Fair Work and the awards to verify the specific conditions for your state and industry.

Well before a public holiday occurs, decide if you will keep your food business open or closed. Consider these issues:  how many sales do you predict, can the business function on a skeleton staff, who are the “affordable” employees, will the chosen employees be able to work, is it worth being open and many other impacts to the profitability.  Some businesses decide to close due to the cost of wages. Some do a roaring trade on a public holiday, so they trim the menu, operate with a low base skeleton staff, and prep in advance to cope with the rush.

When Are Employees Paid for Public Holidays?

Public holiday pay depends on whether employees work or don’t work on the day.

If the employee does not work:

  • Full-time and part-time staff are entitled to be paid their base rate for their usual hours, if the holiday falls on a day they would normally work.
    Note: if a part-time employee is not normally rostered on the day that falls as a public holiday, the employee is not paid.

  • Casual employees do not get paid if they don’t work the public holiday day.

If the employee does work:

  • You must pay the higher penalty rates, as outlined in your employee’s award or enterprise agreement.

    • For most hospitality workers under the Hospitality Industry (General) Award, public holiday rates can be up to 250% of the base rate.

    • Some businesses provide a day off in lieu or extra annual leave instead — but this must be in writing and agreed upon as per the award conditions.

Alternative public holiday payments (Restaurant Industry Award)

Each time a full-time or part-time employee works a public holiday, they can agree with their employer to get one of the following, instead of the public holiday penalty loading:

  • a 25% loading on their ordinary pay rate and
    • a day (or equivalent time) off with no loss of pay or
    • an extra day (or equivalent time) to add to their annual leave.

If they choose time off with no loss of pay, the time off is taken either:

  • during the week of the public holiday, or
  • within 28 days of the public holiday.

An employee being paid an annual salary must get paid time off or time added to their annual leave (that is equal to the time worked) if they work on a public holiday.

Right to not work on a public holiday

Employees should be given the choice to work on a public holiday or not.

Employers can request employees to work on a public holiday, but the request has to be reasonable.

An employee can refuse a request to work if the:

  • employee has reasonable grounds, or
  • request is unreasonable.

What are reasonable grounds for requesting or refusing to work on a public holiday?

In determining whether an employer’s request or an employee’s refusal to work on a public holiday is reasonable, the following must be taken into account:

  • the nature of the employer’s workplace (including its operational requirements) and the nature of the work performed by the employee
  • the employee’s personal circumstances, including family responsibilities
  • whether the employee could reasonably expect that the employer might request work on the public holiday
  • whether the employee is entitled to receive overtime payments, penalty rates, or other extra payments
  • the type of employment (for example, full-time, part-time, casual or shiftwork)
  • the amount of notice in advance of the public holiday given by the employer when making the request
  • the amount of notice in advance of the public holiday given by the employee in refusing the request
  • any other relevant matter.

Annual leave and sick leave

If a public holiday falls during a period of paid leave (for example, annual leave or sick leave), the employee has to be paid for the public holiday. This includes any hours that fall on a part-day public holiday.

The public holiday isn’t counted as annual leave or sick leave. This means that the public holiday hours will not be taken away from the employee’s amount of built-up paid leave.

If an employee takes sick leave either side of a public holiday, they should still be paid for the public holiday if it is on a day that they would normally work. Normal sick leave rules apply for the time taken as sick leave. An employer can also ask the employee for evidence that shows the reason they took the leave.

If an employee is rostered to work on a public holiday on a day they don’t normally work, and calls in sick, they don’t get paid for that day.

If an employee is taking annual leave at the same time as unpaid parental leave, they won’t be paid for the public holiday.

Unpaid leave and public holidays

An employee isn’t paid for any public holiday that falls during a time when the employee is on unpaid leave. Examples of unpaid leave include:

  • unpaid carer’s leave
  • unpaid parental leave
  • unpaid community service leave.

Where an employee has agreed to take unpaid leave during a shutdown, they may be entitled to payment for the public holidays that fall during that time. This will depend on:

  • if the employee has ordinary hours of work on those public holidays
  • any award or agreement provisions that apply
  • the circumstances of the unpaid leave
  • any agreement between employer and employee to be paid for public holidays.

Minimum hours on public holidays

Check your relevant award, because these hours may vary:  Regardless of how long they actually work, when an employee works on a public holiday they have to be paid for a minimum of:

    • 4 hours for full-time and part-time employees; and
    • 2 hours for casual employees.

Working outside your state or region on a public holiday

An employee is entitled to the public holidays that fall where they are based for work, not where they are working on the day of the public holiday.

When do public holidays occur in my state

The latest list of gazetted public holiday dates for 2025 can be found HERE.  Take note, they can vary by state.  Start planning now.

Pay Guides

Click to download the latest PAY GUIDES for:

The rates in these pay guides may change as at 1 July 2025 – check Fair Work regularly for rate changes.

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