Statutory (public) holiday payments

ANSWER ID:23034

Since the Holidays Act 2003 was introduced, it is a requirement to pay time and a half for the hours an employee works on a public holiday.

If it is the employee's 'normal' day of work, they are also entitled to an 'Alternative Holiday', in other words a day off in lieu.

To comply with this regulation, you will need to carry out the instructions below.

The example used in this support note is based on an employee who normally works 40 hours per week.

To create a pay for a public holiday

Go to the Prepare Pays command centre and click Enter Pays.
Double-click the applicable employee.
Enter the amount of hours of Ordinary Time worked (ORD pay code).
Raise the ORD1.5 pay code by pressing F4 and choosing the ORD 1.5 pay code then clicking OK.
Enter the number of hours worked on the public holiday then click OK.
Enter the same amount of hours entered into the ORD 1.5 pay code in the STAT pay code. This will record the 'STAT' day.
Enter the same amount of hours, but in a negative amount, in the LIEU pay code. This will accrue the 'Alternative Holiday'.

No payment in the 'Current Pay' will result from the entry of steps 7 and 8 as they counteract each other. It will simply record the 'STAT' Day and accrue the 'Alternative Holiday' for use at a later date.
When you put the hours in the LIEU pay code an analysis window for 'Alternative Holidays' will appear. Enter the Date the holiday occurred then tab along to over-key the Quantity and Days fields, in other words -8.00 and -1.00 respectively, then click OK.
Continue processing the pay as normal.

To pay out the day in lieu

When the day in lieu is taken by the employee, process their pay as follows:

Go to the Prepare Pays command centre and click Enter Pays.
Double-click the applicable employee.
Enter the amount of hours of Ordinary Time worked and any applicable overtime.
Enter the number of hours taken as the day off in lieu in the LIEU pay code, for example 8. Ensure this is entered as a positive amount.
When you put the hours in the LIEU pay code an analysis window for 'Alternative Holidays' will appear. Enter the Date the holiday occurred. Ensure the Quantity and Days fields display 8.00 and 1.00 respectively, then click OK.
Continue processing the pay as normal.

What if only part of the Stat Day is worked?

If an employee works on a Public Holiday and it is their normal working day they are entitled to be paid ORD 1.5 (Time and a half) for the time they actually work on that day, plus an "Alternative Holiday" (Day in Lieu).

This can be processed following our step by step guide above but using the hours that the employee actually worked.
In the example shown below, the employee has worked four hours on a public holiday so their entitlement is 4 hours at ORD 1.5 and a full day off in lieu for the STAT day.

You can now follow the process from Step 8 in the To create a pay for a public holiday process.

What if the public holiday is not the employee's normal day of work?

If an employee works on a public holiday and it is not their normal working day, they are entitled to time and a half (ORD 1.5) for the time they work - follow the steps above.

They are not entitled to an 'Alternative Holiday', in other words a day in lieu.

What if the employee does not work on the public holiday but it is their normal day of work?

If an employee does not work on a Public Holiday but it is their normal working day, they are entitled to STAT hours for the time they would have normally worked at their Relevant Daily Pay (that is, what they would have earned, if they had in fact worked that day).

Enter the required hours using the STAT pay code.

If it is not possible or practical to calculate the employee's Relevant Daily Pay. See Holiday Act changes 1 April 2011 for information on the payment of public holidays introduced from 1 April 2011.