The rules for paying an employee who is on call on a public holiday are set out in the Employment Relations Act 2000. What has to be paid depends on a number of factors including whether the employee was or was not called in to work on the public holiday, and if not called in to work, whether the conditions and restrictions of the call-out arrangement limited the employees activities.
If an employee is on call and is called in to work
If an employee is on call on a public holiday and is called on to work on that day, the employee is entitled to an alternative holiday (s 59 ER Act). This applies only if the public holiday would otherwise be a working day for the employee. If it would not otherwise be a working day for the employee, and they are not called into work, or restricted from going about their day, then they will not be entitled to an alternative holiday.
Also, if called into work, the employee must be paid at least time and a half for the hours actually worked on a public holiday (s 50 ER Act).
So, for example, if a public holiday falls on a Monday and that is a day you would normally work, and you are called into work for four hours you will be entitled to:
- A paid alternative holiday; and
- At least time and a half for the four hours actually worked on the public holiday
If an employee is on call, is not called in to work, but has to limit activities
If an employee is on call on a public holiday but is not called in to work, the employee is also entitled to an alternative holiday, only if it would have otherwise been a working day, and the nature of the restrictions imposed by being on call are such that the employee’s freedom is limited so that they cannot enjoy a full days holiday. If it would not have otherwise been a working day, then the employee will not be entitled to an alternative holiday.
So, for example, if you are on call and you are required to stay at home all day in case you are needed at work, then you will be entitled to:
- A full day’s paid alternative holiday even if you don’t get called in to work
If the employee is on call but is not required to limit activities
If an employee is on call but is not required to limit their activities, and is not required to come into work if called on, then they will be entitled to only the normal daily pay for a public holiday. If the employee chooses to accept the call out, they will be entitled to:
- A full day’s paid alternative holiday; and
- At least time and a half for the hours actually worked on the public holiday
If you are unsure about your rights or obligations in your particular situation, give our team a call on 03 211 0080
