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Labour Day is coming, is your payroll team ready?

 

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The Holidays Act 2003 recognises Labour Day as a public holiday. This year, Labour Day falls on Monday 22 October, so what does that mean when you come to process your payroll?

If an Employee works on Labour Day, and Monday is their normal working day, they are entitled to time and a half (T1.5) for all hours worked on 22 October, and an alternative day.

If an Employee normally works on a Monday, however is not required to work on 22 October, they need to be paid at their relative daily rate (this being the hours that they would have worked had they been required to work that day). This Employee would not be entitled to a time and a half payment or an alternate day on account that they did not physically work on that day.

If an Employee does not normally work a Monday, but does work on 22 October, they will be entitled to time and a half for all hours worked on that day, however would not be entitled to an alternate day.

Payments for any Employee working a shift on any part of the Public Holiday (i.e. over the midnight on either the Sunday or the Monday) are considerably more complex to calculate.

Unsure whether Monday 22 October will be a normal working day for your Employee? Or are you having trouble calculating relative daily rates or average daily rates? Our team would be happy to help those who are having trouble with those tricky calculations under the Holiday Act 2003, or even simply checking your calculations for peace of mind, feel free to give us a call.