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April 2010
 
Confusion Over Local Public Holidays
 
         
 
Traditionally public holidays have been given practical application through industrial awards. The federal award and State awards that have applied to this industry list those public holidays that will apply to employees that are covered by such awards.
 
     
 
 
 
Within the federal award ( as it was with many federal awards) an additional facilitative provision allowed for an additional public holiday in a State or locality within that State where a State Government proclaimed or gazetted such additional holiday and such day was to be generally observed. As a result, unless such local day or half day which is gazetted under the NSW Bank & Banks Holiday Act was “generally observed” then this day would not result in a day for federal award employees just as it did not apply to employees under State awards.

The Federal Government has in recent times introduced the National Employment Standards which includes a public holiday provision. This provision identifies eight public holidays that are to be recognised as public holidays for all employees and includes a clause that continues the recognition of local days or half days where a State Government proclaim or gazette such a day and that day is to be observed generally.

In recent times the NSW Government industrial relations office has been asserting that these local days and half days are now public holiday entitlements, which is contrary to their advice several weeks ago. This is a surprising revelation from MTA’s perspective.

What has changed?

The same local day or half day enabling clause that was in the federal award has been picked up in the National Employment Standards. This in itself should not alter the position – these days not being public holidays.

The NSW Government has reached agreement with the Federal Government to allow the private non corporation sector (sole traders and partnerships) to move into the federal industrial relations system and to adopt the federal workplace relations system for the private sector as of 1 January 2010. This in itself should not alter the application of these enabling clauses.

The Bank and Bank Holidays Act continues to provide for, and the NSW Government continues to publish in the gazette certain local day and half days as holidays for the locality (or local government area) to which that day is to apply. As such there should be no change here in application and therefore the day should not impact on business generally.

So what has changed? It appears the NSW Department of Industrial Relations has changed its position and it considers that these local days are now public holidays. The issue from an MTA perspective is that MTA does not know why the change in view.

If the Bank and Bank Holidays Act applies to businesses beyond banks, then perhaps these local days once published in the gazette should always have been public holidays. But does the Bank and Bank Holidays Act apply to businesses other than banks? If not then what is the relevance of these local days?

MTA has written to the Minister to seek some clarification and bases of the Government’s position. MTA awaits a response.

In the meantime any member in a regional area which is subject to a local day or half day holiday due to the publishing of that day in the gazette by the NSW Government and it is your intention to trade, please consider the following advice.

If it is your intention to trade on this day and you wish to avoid the double time and a half penalty rates, then reach an agreement with your employee/s that the employee works on the designated day, and that another day or half day will be made available to be taken off work in the event that the gazetted day is found to be a public holiday.

This substitution is available under both the modern clerical and vehicle awards. Members may identify these local days by referring to the April edition of the MTA Industrial News available within the members section of the web site within the employment relations area.

The NSW Government commenced an inquiry into public holidays during 2009. Regrettably nothing much has come out of this inquiry. If it had I doubt employers would be saddled with the uncertainty which now surrounds this issue. MTA would be hopeful of convincing the NSW Government to get on with the job and provide that certainty that NSW business requires during these difficult and uncertain economic times.

I look forward to providing more certain information in due course.

 
 
By Greg Hatton
Deputy CEO Policy and Employment Relations

phone: 02 9213 4211
fax: 02 9212 6889
email: greg.hatton@mtansw.com.au

 
 

 

     
 
 
 
     
         
 

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