If your business operates on a public holiday, or you’re thinking of trading on a public holiday for the first time, have you considered your employees and whether they want to work? What if employees take paid annual leave but work elsewhere in the time off?

Before the alarm bells start ringing let’s look at strategies to help you put the Christmas cheer back into your operations

Paying annual leave but employee works elsewhere

By paying your employee annual leave, you expect them to enjoy a break from work – right? What happens if one of your employees plans to work elsewhere during that time?

According to the Fair Work Act, an employee can work for another employer while on annual leave, provided the work performed does not conflict with the business interests of the main employer. Encourage an open and honest conversation with your employee – it’s the best approach.

One consideration when hiring new staff is to outline your expectations in the employment contract and avoid any confusion from the outset.  

Rostered day off falls on a public holiday

It’s not surprising that an employee who is entitled to a rostered day off (RDO) may feel a little ripped off if their RDO falls on a public holiday.

If you have an RDO system in your workplace and an employee’s RDO falls on a public holiday, you need to mutually agree on another day.

For more information, refer to the applicable modern award or enterprise agreement and work out an arrangement that keeps you both happy. 

Leave without pay during Christmas period

If you have an employee who takes leave without pay over the festive season, they may question why they haven’t been paid for the public holidays. The general rule is if an employee does not have ordinary hours of work on the day of the public holiday, the employee is not entitled to payment. Similarly if an employee is on leave without pay on both sides of a public holiday, they are not eligible to be paid for the public holiday. 

Unravelling Boxing Day

Many retail businesses are now following major department stores with Boxing Day trading but if you think you can make your employees work, you may need to think outside the box.

Did you know there is no unilateral right for an employer to direct an employee to work on Boxing Day? The right of an employee to refuse to work on Boxing Day is subject to the Fair Work Act and in some cases, the relevant state or territory retail trading law. An employee can refuse to work but must provide a satisfactory reason.

To avoid staffing issues, talk to your employees – find out who’s around and who’s keen. Pay the correct penalty rates and find a way to make it attractive for them to snap up a shift.   

Wrapping up

With good communication and an understanding of your obligations as an employer, you can make it a cracker of a year-end. And when 2025 rolls around, it’s a clean slate and you get to do it all again. 

My Business Workplace has a leave policy and more than 200 documents to ensure you’re compliant with workplace legislation.