The Prime Minister’s announcement of a National Day of Mourning to recognise the passing of Queen Elizabeth II, has elicited a strong response across the SA business community. Business acknowledges that this day has been chosen to pay our respects and that it is a unique set of circumstances, however the impact of such a snap decision needs to be better understood.
An unplanned public holiday has a financial impact on businesses, particularly at a time of significant cost pressures around energy, transport, materials, and wages. For example, a manufacturer has told us that the one-day holiday will cost them $80,000.
For those operating large manufacturing equipment, the shut down and re-starting of the big kit for a mid-week public holiday will result in significant down time.
With ongoing issues around labour and skills shortages and the disruption of the past few years, businesses need to be as productive as possible. For those operating large manufacturing equipment, the shut down and re-starting of the big kit for a mid-week public holiday will result in significant down time. An unplanned Thursday public holiday, will in many cases, cause a 20% downturn in output. Add to that the likelihood of staff taking an extra day’s leave on the Friday and you have a potential 40% downturn across the week.
Enquiries to our Business Advice Hotline and visits to our website have spiked significantly since the public holiday announcement, so it is timely to remind the business community of their responsibilities.
With an exemption granted under the South Australian Shop Trading Act, those businesses who usually cannot trade on a public holiday now have the choice to do so. The South Australian Business Chamber supports this decision to give businesses the option irrespective of location and size.
For some businesses it makes good sense to open, as their sector may typically trade strongly on public holidays. For others, the likelihood of a slow day and the impost of public holiday penalty rates to be paid to staff make it very unappealing. The catch is, wages will still need to be paid to permanent staff regardless of whether a business opens or not, which finds many in a no-win situation.
It is up to employers to be sure to check their relevant industrial instruments to comply with the conditions of payment. Businesses that choose to trade must check the Modern Award, Enterprise Agreement, or Employment Contract to determine the appropriate penalties for employees required to work on a public holiday.
Under the National Employment Standards, permanent employees are entitled to a paid day off for public holidays. Permanent employees whose normal working hours include Thursday 22 September 2022, will be entitled to the paid day off, or the applicable penalty rates if required to work.
Casual employees are not entitled to a paid day off for public holidays not worked. Therefore, those not required to work will not receive payment for this day.
Businesses are encouraged to contact our Business Advice Hotline on 08 8300 0000 (option 1) for advice and guidance on determining applicable rates of pay.
