The Mondayisation of public holidays

Calculating holiday pay has continued to dominate employer resources, with the New Year being accompanied by five Mondayised holidays. When a public holiday falls on a Saturday or Sunday, as with this Waitangi Day, the holiday may be celebrated on a weekday (“Mondayised”) for the purpose of holiday pay, depending on when an employee ordinarily works.[1] 

A public holiday will only be Mondayised for employees who do not usually work on the day the holiday falls. This requires working out what is an ‘otherwise working day’ for those employees whose pattern of work is inconsistent. A practical assessment of all relevant factors is required, which may include a review of the employment agreement, usual patterns of work, and recent rosters. 

For this Waitangi Day, which falls on Saturday 6 February, employers should consider the following:

1. If an employee normally works on a Monday and not the actual public holiday, Monday 8 February will be treated as the public holiday. If they work on the Monday, they will be paid time and a half and a day in lieu. If they do not work, they will be paid their relevant or average daily pay.
2. If an employee normally works on a Saturday but not a Monday, Waitangi Day (which falls on the Saturday) will be recognised as the public holiday. If they work on the Saturday, they will be paid time and a half and a day in lieu. If they do not work, they will still be paid for that day.
3. If an employee normally works both Saturday and Monday, the holiday is not Mondayised. If they work these days, they will receive time and a half and a day in lieu for the Saturday, and will be paid normally for the Monday.
4. If an employee does not normally work Saturday or Monday, but they work on Saturday, they will receive time and a half, but not a day in lieu.

Many employers have been caught out in retrospective audits of their Holidays Act compliance. It is timely to use this Waitangi Day to review management of leave throughout the Christmas/New Year period.

The specialist employment law team at DTI Lawyers can assist you with advice on Holidays Act compliance, audits of pay and leave, and leave calculations. Phone: 07 282 0174.