What is Mondayisation of Public Holidays?

There's something satisfying about a long weekend, isn't there?

The allure of an extra day off can invigorate even the most worn-out among us. But as an employer, these extended weekends, particularly those brought about by the "Mondayisation" of public holidays, can sometimes bring about a sense of uncertainty. 

As we dive into the world of New Zealand's employment laws, we aim to shed some light on this unique practice, helping you navigate your payroll responsibilities confidently and stay ahead of the compliance curve.

Here’s what you need to know about how Mondayisation may impact your payroll.

In New Zealand, there are specific public holidays that can be subject to Mondayisation. These include the following: 

• Waitangi Day (6 February)
• Anzac Day (25 April)
• Christmas Day (25 December)
• Boxing Day (26 December)
• New Year's Day (1 January)
• The day after New Year's Day (2 January)

If any of these holidays land on a Saturday or Sunday, they will be moved to Monday (or, in some cases, Tuesday) for employees who don't normally work on the weekend.

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• Public holiday falls on a Saturday or Sunday
• Check if the employee usually works on the calendar date of the holiday (known as an “otherwise working day”) 
• If the employee doesn't usually work on that day, the public holiday gets 'mondayised' and moved to the following Monday (or Tuesday in some cases)
  
  

Where Do "Otherwise Working Days" Fit In?

An "otherwise working day" is a day when an employee would have worked if it were not for the public holiday. 

You’ll need to understand whether a day is an "otherwise working day" to establish if Mondayisation affects employees and their entitlements. 

Here's a quick guide to help you understand what makes a day an "otherwise working day":

• Regular work patterns: If your employee has a fixed schedule and regularly works the same days each week, it's easy to determine whether a public holiday falls on their otherwise working day. For example,, if your employee works from Monday to Friday, a public holiday that falls on a Saturday is not an otherwise working day for them.
• Rosters and changing work patterns: For employees with rosters or changing work patterns, determining an otherwise working day can be more challenging. In such cases, you should consider the employee's work routine over the past three weeks to identify any patterns or consistency in working on that particular day. This can help determine whether the public holiday falls on an otherwise working day for the employee.
• Casual and part-time employees: For casual and part-time employees without a fixed work schedule, you should review their work agreements, recent work patterns, or even consult them directly to determine whether a public holiday falls on an otherwise working day.

Whether an employee gets paid for this Mondayised holiday depends on whether it would be their "otherwise working day."

For example, if Waitangi Day falls on a Saturday and Saturday is an "otherwise working day" for an employee, they would observe the public holiday on that day itself. But if it's not their usual working day, the Mondayisation applies, moving the public holiday to the following Monday for them.

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Scenario 1: Employee Works Monday to Friday

Take the case of Grace, one of your employees who works from Monday to Friday. When Waitangi Day falls on a weekend, let's say a Saturday, the Mondayisation rule kicks in for her. This implies that her public holiday is moved to the following Monday. In practical terms, Grace enjoys her usual weekend off and then doesn't have to come into work on Monday as it's observed as a public holiday.

Scenario 2: Employee Works on a Weekend But Not a Monday

Then we have Jack, who's part of your weekend crew but doesn't work on Mondays. If Waitangi Day falls on his usual working Saturday, he gets that day off to celebrate the holiday. But since he doesn't work on Mondays, the Mondayisation rule doesn't shift his holiday; he'll be having his regular day off on Monday.

Scenario 3: Employee Works on the Weekend and on a Monday

Consider Sophie next. She's committed to both the weekend and Monday shifts. If Waitangi Day occurs on a Saturday, her 'otherwise working day', she observes the public holiday on that day itself. When Monday comes around, Sophie will be back at work, as the Mondayisation rule doesn't apply to her since she already had the holiday on her usual working Saturday.

Scenario 4: Employee Doesn't Work on the Weekend or a Monday

Finally, let's think about Liam. His work schedule runs from Tuesday to Friday, so neither the weekend nor Monday are his usual working days. If Waitangi Day happens to fall on a weekend, it won't directly alter Liam's working week. 

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This robust tool not only ensures accuracy in employee pay and benefit calculations, but it also frees up significant time.

Here are some benefits of incorporating automated software into your payroll processes: 

Accurate Calculation of Entitlements

Mondayisation can make calculating employee entitlements a bit tricky. Automated payroll software handles the complex calculations for you, ensuring that your employees receive the correct pay and benefits for working or taking leave on a Mondayised holiday. 

The software can automatically determine if an employee is entitled to a public holiday and, if so, calculate the appropriate entitlements, such as time-and-a-half pay and a day in lieu.

Simplified Record-Keeping

Tracking employee working hours, leave requests, and entitlements can be time-consuming and prone to human error. Automated payroll systems streamline this process by maintaining accurate records for you. These records can include individual employee attendance records, leave balances, and pay rates, as well as any specific details related to the Mondayisation of public holidays. This simplifies your record-keeping process and allows you to easily access and review the information when needed.

Compliance with Legislation

It's crucial for your business to stay in compliance with New Zealand's Holiday Act 2003, which outlines rules and regulations surrounding the Mondayisation of public holidays. 

Automated payroll software keeps up with the latest legislative changes, ensuring that your payroll processing adheres to the applicable laws. The software takes care of calculating employee entitlements in line with the regulations, reducing your risk of non-compliance and potential penalties.

Time and Cost Savings

Another significant advantage of employing automated payroll software is the time and cost savings you can achieve by streamlining your payroll process. 

Automation allows you to focus on other essential aspects of running your business, such as calculations, record-keeping, and compliance. This efficiency translates into reduced labour costs and improvements in overall productivity.

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