Public Holiday Pay Rates and Entitlements Explained: What Australian Workers and Employers Must Know in 2026
Public holidays are a source of genuine confusion for many Australian businesses and workers — and the stakes for getting it wrong are high. Underpayment claims lodged with the Fair Work Commission have increased significantly in recent years, with public holiday misclassification a recurring trigger for disputes across the construction, logistics, manufacturing, and mining sectors.
Whether you're a tradesperson wondering what you're owed for working over Easter, or an employer managing a large labour hire workforce through the Christmas shutdown period, understanding your obligations under the Fair Work Act 2009 is non-negotiable.
This guide breaks down the key rules, common pitfalls, and what's changed recently — in plain language.
What Australian Law Actually Says About Public Holidays
Under the National Employment Standards (NES), all employees covered by the Fair Work Act are entitled to a day off on public holidays — with no reduction in pay. If an employee is required to work on a public holiday, they must be compensated in accordance with their applicable Modern Award, enterprise agreement, or employment contract — whichever provides the better outcome.
Employers can request that employees work on public holidays, but the request must be reasonable, and employees have the right to refuse on reasonable grounds — such as family responsibilities, personal circumstances, or the nature of their role.
National vs. State and Territory Public Holidays
Australia's public holiday landscape is more complex than many realise. There are national public holidays — such as New Year's Day, Australia Day, Anzac Day, Easter (Good Friday, Easter Saturday, Easter Sunday in some states, Easter Monday), Christmas Day, and Boxing Day — as well as state and territory-specific holidays that vary considerably.
For example:
- Queensland observes the Brisbane Show (Ekka) as a public holiday — but only for certain areas
- Victoria has the AFL Grand Final Friday as a public holiday
- Western Australia observes a separate Queen's Birthday date from the Eastern states
- South Australia celebrates Adelaide Cup Day
- New South Wales and ACT observe the Bank Holiday on the first Monday in August
For businesses operating across multiple states — as many construction, logistics, and labour hire companies do — tracking these variations is essential to avoid compliance failures.
Public Holiday Pay Rates by Industry
The rate of pay for working a public holiday depends on the relevant Modern Award. Below are the key entitlements across HBG's core industries:
Construction (Building and Construction General On-site Award)
- Employees who work a public holiday are typically entitled to double time and a half (250%) of their ordinary rate
- Employees who don't work but are rostered on receive their base ordinary pay
Manufacturing (Manufacturing and Associated Industries and Occupations Award)
- Public holiday work is generally compensated at double time (200%) or an alternative day off in lieu, depending on the enterprise agreement
- Casuals are entitled to the public holiday penalty rate on top of their casual loading
Logistics and Warehousing (Road Transport and Distribution Award / Storage Services Award)
- Rates vary but typically sit at double time to double time and a half for worked public holidays
- Drivers and warehouse operators should check their specific award classification carefully
Mining (Mining Industry Award)
- Workers on public holidays generally receive double time or a day off in lieu depending on site agreements
- FIFO workers with compressed rosters have specific entitlements that should be documented in their enterprise agreement
Traffic Management (Road Traffic Management Award)
- Traffic controllers working public holidays are entitled to penalty rates, typically double time
- Casual traffic controllers receive the standard casual loading plus the public holiday rate
For a broader breakdown of award rates across industries, visit the salary guide on the HBG website.
Casual Employees and Public Holidays: What's Changed
Casual employees have historically occupied a grey area when it comes to public holiday entitlements. Under the NES, casuals are entitled to be absent on a public holiday without penalty, but they are not entitled to payment for the day unless they are actually rostered and required to work.
However, if a casual is rostered to work on a public holiday and then that shift is cancelled, case law and recent Fair Work rulings suggest this may constitute a breach of the casual's entitlements in some circumstances — particularly where regular and systematic rostering can be demonstrated.
The 2024 amendments to casual employment definitions (now flowing through into 2026 compliance obligations) make this even more relevant. Businesses using labour hire services to manage casual workforces should ensure their host employer agreements clearly address public holiday rostering and cancellation terms.
Substitution of Public Holidays: What Employers Need to Know
Under Section 114 of the Fair Work Act, employers and employees can agree to substitute a public holiday for another day. This is common in industries with continuous operations — such as mining, food and beverage, and warehousing — where shutting down on a specific date is operationally impractical.
Any substitution must be:
- Agreed in writing (or documented in the enterprise agreement)
- Genuinely voluntary — employers cannot pressure workers to substitute
- Treated as the operative public holiday for all penalty rate and entitlement purposes
Failing to document substitutions correctly is one of the most common causes of underpayment findings during Fair Work audits.
What Happens When a Public Holiday Falls on a Weekend?
When a gazetted public holiday falls on a Saturday or Sunday, most states provide for a substitute weekday (typically Monday or Tuesday) to be observed as the public holiday. In most cases, both the actual day and the substitute day carry entitlements — meaning employees who work the weekend public holiday may also be entitled to protections on the observed weekday.
This is a nuanced area that catches many employers off guard, particularly around Christmas and Easter when multiple public holidays cluster together. Inside Construction has previously highlighted how the construction sector is particularly exposed to compliance gaps during the Christmas–New Year period when project schedules are under pressure.
Common Mistakes Employers Make
- Using flat rates for all casual shifts regardless of whether a public holiday applies
- Failing to track state-specific holidays for multi-state workforces
- Substituting public holidays verbally rather than in writing
- Misclassifying employees under the wrong award, resulting in incorrect penalty calculations
- Assuming enterprise agreements override NES minimums — they can only improve, never reduce, entitlements
According to the Australian Construction Industry Forum, wage compliance — including public holiday entitlements — is an increasing area of scrutiny for principal contractors who bear secondary liability under labour hire arrangements.
What This Means for Your Business in 2026
For employers: Conduct a payroll audit before the next major public holiday cluster (typically the July long weekends in various states). Ensure your award classifications are current, your enterprise agreements have been reviewed post the 2024 casual law amendments, and that any substitution arrangements are properly documented.
For workers: Know your award. If you're unsure which Modern Award covers your role, check the Fair Work Ombudsman's Award Finder or ask your labour hire agency directly. If you believe you've been underpaid, you have the right to lodge a claim — and the three-year limitation period means historical underpayments can still be pursued.
For labour hire arrangements: The host employer and the labour hire company share responsibilities. Ensure your labour hire services or permanent recruitment partner has robust payroll compliance systems in place — it protects both parties.
Need Help Navigating Workforce Compliance?
At Harrison Barratt Group, we manage payroll and workforce compliance across construction, manufacturing, logistics, mining, and beyond — in NSW, QLD, VIC, WA, SA, and New Zealand. Our team stays current with every award rate update, public holiday gazettal, and Fair Work amendment so your business doesn't have to.
If you're looking for a workforce partner that takes compliance as seriously as you do, request a quote today and let's talk about how HBG can keep your operations moving — and compliant — all year round.