Time constraints created by having banks closed on public holidays lead to payroll processors making decisions under pressure, about what value an employee should be paid on a public holiday. It's easy to throw your arms up in despair.
Don't stress, if you are processing payroll over a period when a public holiday/s fall there are some basic facts that you need to know.
Public holidays are paid at a minimum of time and one half, for the hours worked, if the employee worked on the day and it is an ordinary working day for them.
If it is the employees ordinary working day, and the employee works it, then they will also be awarded an alternative leave day.
If it is not the employees ordinary working day, and they work it, they will not be entitled to an alternative leave day.
If it is not the employees ordinary working day, and the employee does not work, then there is no obligation to make a payment.
Remember that Alternative Leave is recorded in days. It is simply a day in, when earned, and a day out when taken.
There are many other considerations to take into account and that is why it is important to seek sound payroll advice from a payroll specialist or employment lawyer.
Another thing to consider ... Will you pay employees before or after the public holiday.