There have been recent amendments to the Holidays Act, 2003. These amendments came into force on Labour Day, 25th October, 2004.
The Holidays Amendment Act 2004 was introduced due to unintended anomalies resulting from the introduction of the changes to the Holidays Act 2003. The Holidays Act, 2003 is still the Principal Act.
The Major Changes are:
The Amendments further ensure that Employees are paid a minimum of time and a half for working on a public holiday.
Employees working on a Public Holiday must be paid the greater of:
- The Employee's relevant daily pay rate (less penal rates) plus half that amount again; or
- The Employee's relevant daily pay rate (which includes all penal rates)
Penal Rates are defined as anything that is designed to remunerate employees if they are working on a particular day, this could be a Saturday or Sunday or a Public Holiday. Penal Rates do not include additional payments such as overtime rates and shift allowances.
Employment Agreements should be changed to show that time and a half will not be paid on top of any special payments that the employee already receives. Employees who are paid less than the time and a half in penal rates must be compensated up to time and a half.
Section 51 of the Holidays Act 2003, provides a provision for Employers who already pay for work on Public Holidays in employee's regular pay. Section 51 applies to an existing Employment Agreement for the period of 12 months after 1 April 2004.
The Holidays Act 2003 provides for the transitional period to expire on 1 April 2005. The Holidays Amendment Act 2004 extends the period to 1 April 2007, for individual agreements and for collective agreements to the latter of 1 April, 2007 or when a collective agreement becomes ratified.
Employees who call in sick on Public Holidays are not eligible for Public Holiday rates. The Holidays Amendment Act 2004 states that where an Employee is sick or bereaved on a Public Holiday on which the Employee was scheduled to work, the day is to be treated as an unworked public holiday not as sick or bereavement leave. The Employee does get a paid day off but is not entitled to time and a half or an alternative holiday.
The Holidays Amendment Act 2004 states that Employers will be able to request proof of sickness or an injury from employees. Employers can ask for a medical certificate from an employee within three days of that employee being sick.
The employer can request the medical certificate if:
- The Employer has reason to suspect that the leave is not for a genuine reason
- The Employer advises the Employee of the requirement for proof of sickness as soon as practicable
- The Employer pays for the medical certificate
Employment Agreements will need to be changed to reflect the above amendments.
Contact Dick Knapp at our office if you require any advice or assistance.
