For example, if Australia Day is on a Saturday, employers must pay working employees public holiday rates for the Monday. But what happens if an employee works on Saturday and Monday? Are they paid public holiday rates for both days?

When a public holiday falls on a weekend

The short answer is no.

Since 2012, when Australia Day (26th of January) falls on a Saturday or a Sunday, there will be no public holiday on that day, as the following Monday will be declared a public holiday. This means, for any staff working on Saturday or Sunday, won't be entitled to additional public holiday penalty rates.

The Fair Work Act also covers substituted public holidays under a state or a territory law. Section 116 of the Fair Work Act provides that an employer must pay an employee at the employee's base rate of pay for the employee’s ordinary hours of work on the day or part-day.

This means, for example, a casual employee who is not rostered on for the public holiday is not entitled to payment for the day, likewise, a part-time employee is not entitled to payment for the holiday if their hours do not include the day of the week on which the public holiday occurs.

Employers should also check their award or enterprise agreement for any further provisions in case it provides different information for public holidays and payments. Some awards and agreements provide that if a public holiday falls on a day you don’t normally work, you still get compensation such as additional leave or time in lieu.