Working On ANZAC Day In New Zealand: Rules, Pay Rates And Rights

ANZAC Day is one of the most significant public holidays on the New Zealand calendar, and for many small businesses it’s also a day where trade still needs to happen.

If you’re running a café, retail store (where permitted), security business, healthcare service, logistics operation or any business with rostered shifts, you’ve probably asked yourself: what are the rules for working on ANZAC Day?

The good news is that the key obligations are fairly consistent across industries. The tricky part is applying them correctly to your specific staff, rosters, and employment agreements - and making sure your payroll gets it right.

Below, we break down what you need to know about working on ANZAC Day, including when employees are entitled to be paid, when time-and-a-half applies, when an alternative holiday applies, and what you should have documented to protect your business.

Is ANZAC Day A Public Holiday (And What Does That Mean For Your Business)?

Yes - ANZAC Day (25 April) is a public holiday in New Zealand. Most of the “employee entitlement” rules for the day come from the Holidays Act 2003.

From an employer’s perspective, treating ANZAC Day correctly comes down to one key concept under the Holidays Act: whether ANZAC Day is an employee’s otherwise working day.

In simple terms, an “otherwise working day” is a day the employee would have worked if it wasn’t a public holiday. This can depend on:

• their agreed days/hours in their employment agreement
• the roster pattern (especially for shift workers)
• work history and expectations (where things aren’t fixed)

Getting this classification right matters because it affects:

• whether you must pay the employee if they don’t work
• whether you must pay time-and-a-half if they do work
• whether they’re entitled to an alternative holiday (a paid day off later)

If you’re unsure whether your contracts and rosters clearly define working patterns, it’s worth reviewing your Employment Contract setup so you’re protected from day one.

What About “Mondayisation” If ANZAC Day Falls On A Weekend?

ANZAC Day has “Mondayisation” rules. This generally means if ANZAC Day falls on a Saturday or Sunday, some employees will observe the public holiday on the following Monday (and that Monday becomes the public holiday for entitlement purposes).

Whether the public holiday is observed on the weekend day or on the Monday depends on the employee’s working pattern. In broad terms, if the employee would normally work on the Monday and would not normally work on the Saturday/Sunday, the public holiday is observed on the Monday. If they would normally work on the Saturday or Sunday, the public holiday will generally remain on the actual date for them (and not shift to Monday).

For small businesses with weekend trading and rotating rosters, this can create confusion quickly - because you may have staff working on the actual date (25 April), and other staff with entitlements attached to the “observed” public holiday day.

Practically, the best approach is to confirm early:

• which calendar day is treated as the public holiday for each employee
• whether that day is their otherwise working day
• what pay and leave entitlements flow from that

Can You Require Staff To Work On ANZAC Day?

Sometimes yes - but you can’t treat it as a “normal day” unless the legal and contractual foundations are in place.

Under the Holidays Act framework, an employee can be required to work on a public holiday if:

• the public holiday falls on a day that is an otherwise working day for them; and
• their employment agreement says they must work on public holidays (or the rostered hours include the day and the agreement supports that arrangement).

If the employee’s agreement does not require them to work on public holidays, then you generally can’t force them to work - even if your business is open.

This is where having clear, tailored employment agreements is a big deal. A rushed clause (or no clause at all) can leave you short-staffed on a day where your business needs coverage.

For a more detailed look at the practical considerations and how to manage public holiday work requests properly, you can also refer to Can you make an employee work public holiday.

What If An Employee Refuses To Work?

If their employment agreement does not require them to work public holidays, a refusal may be lawful.

If their agreement does require it and you’ve rostered them legitimately, refusal may become a performance/disciplinary issue - but you should still handle it carefully and fairly. Jumping straight to threats or termination often creates bigger risk than the staffing issue you started with.

A good first step is to check:

• the public holiday clause in the employment agreement
• the roster notice you’ve given (and whether changes were reasonable)
• whether there are genuine reasons (e.g. health, caregiving responsibilities)

If you need to take it further, get advice before you escalate. Public holiday disputes can quickly turn into personal grievance risk if they’re mishandled.

Pay Rates For Working On ANZAC Day: What Do You Actually Have To Pay?

This is the part most business owners are worried about - and it’s also where we see the most payroll mistakes.

If an employee works on ANZAC Day and it’s an otherwise working day for them, you generally must pay:

• at least time-and-a-half (i.e. 1.5x) for the hours worked; and
• provide an alternative holiday (a paid day off later).

Time-and-a-half is calculated on the employee’s “relevant daily pay” (or “average daily pay” if relevant daily pay can’t be determined).

Relevant Daily Pay Vs Average Daily Pay (In Plain English)

Relevant daily pay is essentially what the employee would have earned on that day if they worked a normal shift. It can include things like:

• regular allowances (if they would have been paid that day)
• productivity/commission components (if they are regular and can be identified)

Average daily pay is used when relevant daily pay is hard to calculate or not possible (for example, highly variable hours or pay).

Because these calculations can get technical (especially with variable shifts, allowances, and commission structures), it’s worth reviewing how your payroll system handles public holidays and whether your employment terms match your operational reality.

What If The Employee Works Overtime On ANZAC Day?

If an employee is working on ANZAC Day and does extra hours, the time-and-a-half minimum still applies for the hours worked on the public holiday.

On top of that, your employment agreement might provide additional entitlements (for example, specific overtime rates). This is why your public holiday clause and your overtime provisions need to work together cleanly.

If overtime and penalty rates come up often in your business (hospitality, security, transport, healthcare, trades with urgent call-outs), it’s worth sanity-checking your approach to Working Overtime so your team is paid correctly and consistently.

What If Staff Don’t Work On ANZAC Day: Do You Still Have To Pay Them?

Often, yes - but only if ANZAC Day is an otherwise working day for the employee.

If ANZAC Day Is An Otherwise Working Day

If the public holiday falls on a day the employee would normally work, and they do not work that day because it’s ANZAC Day, you must generally pay them what they would have earned (their relevant daily pay or average daily pay).

This applies even if:

• your business closes for the day; or
• you simply don’t roster them because trade will be quiet.

From a practical standpoint, this means closing your doors doesn’t automatically mean you don’t have wage costs. Planning for public holiday wage obligations is part of your broader staffing and cashflow planning.

If ANZAC Day Is Not An Otherwise Working Day

If the public holiday falls on a day the employee wouldn’t normally work, then generally:

• you do not have to pay them for that day (because they weren’t going to work anyway); and
• they are not entitled to an alternative holiday (unless they actually work on the public holiday and it is an otherwise working day).

This distinction is why accurate rosters (and records) matter so much. If you end up in a dispute, you want to be able to show what the normal working pattern was.

Alternative Holidays (Lieu Days): When Do Employees Get One For Working On ANZAC Day?

Many business owners understand the time-and-a-half part of working on ANZAC Day, but forget the second entitlement: the alternative holiday.

In general, if an employee works on ANZAC Day and it’s an otherwise working day for them, they are entitled to an alternative holiday (sometimes casually called a “lieu day”). This is a paid day off the employee can take later.

A few practical points for employers:

• You should record the alternative holiday entitlement clearly (most payroll systems can track it).
• The alternative holiday should be taken at a later date agreed between you and the employee.
• If the employee leaves before taking it, it may need to be paid out (depending on the circumstances and what’s owing).

Can You Offer Time Off In Lieu Instead Of Time-And-A-Half?

Be careful here. Time-and-a-half is a minimum payment entitlement for working on a public holiday (where the day is an otherwise working day). You generally can’t swap that for time off in lieu by agreement.

Alternative holidays are a separate statutory entitlement - they’re not the same thing as informal time off in lieu arrangements businesses sometimes use for overtime.

If your team uses TOIL arrangements for non-public-holiday extra hours, make sure the policy is clear and consistent, and aligns with your employment agreements. If you want to formalise it, Time off in lieu is one area where having the right wording can save you headaches later.

Common Compliance Traps For Small Businesses On ANZAC Day

Even with the best intentions, public holidays can create accidental non-compliance - especially when rosters change last minute or payroll is done in a rush.

Here are some of the most common issues we see around working on ANZAC Day.

1. Misclassifying “Otherwise Working Day” For Shift Workers

If you run a rotating roster, it’s not always obvious whether ANZAC Day is an otherwise working day for a particular employee, especially if:

• rosters aren’t published far in advance
• staff frequently swap shifts informally
• hours fluctuate week to week

The fix: keep written rosters, have a clear process for shift swaps, and ensure your employment agreements reflect how the roster actually works.

2. Paying Time-And-A-Half But Forgetting The Alternative Holiday

This is extremely common. Businesses remember the pay rate but don’t record or grant the alternative holiday. Over time, this can create a big liability, particularly if multiple staff are affected.

The fix: build a payroll checklist for public holidays so the alternative holiday is automatically considered whenever time-and-a-half is triggered.

3. Using A “Flat Public Holiday Rate” Without Checking Minimum Entitlements

Some employers try to simplify public holidays by paying a standard rate (for example, “double time” for everyone who works). That might sound generous, but it can still create problems if the alternative holiday entitlement isn’t handled correctly, or if the “flat rate” is applied inconsistently.

The fix: if you want to offer above-minimum benefits, document them properly and apply them consistently.

4. Making Last-Minute Rostering Changes Without Contractual Support

If you suddenly decide you need someone to work ANZAC Day, you can’t always rely on “we’re short-staffed” as a reason to require it. Your ability to require work on the day depends heavily on your employment agreement terms and roster arrangements.

The fix: ensure public holiday work expectations are covered in your employment documentation and that rostering is done with reasonable notice.

5. Forgetting There May Be Trading Restrictions

While this article focuses on employment entitlements, it’s also worth remembering there are nationwide trading restrictions on ANZAC Day, particularly around the morning (including restrictions that commonly require many shops to remain closed until 1pm, subject to specific exceptions).

Because trading restrictions and exemptions can be fact-specific (and can depend on your business type and location), getting advice early is the safest option - especially if ANZAC Day is a high-turnover day for you and you’re planning staffing weeks in advance.

Key Takeaways

• ANZAC Day is a public holiday in New Zealand, and your obligations usually depend on whether it is an employee’s otherwise working day under the Holidays Act 2003.
• If an employee works on ANZAC Day and it’s an otherwise working day for them, you generally must pay time-and-a-half for hours worked and provide an alternative holiday.
• If an employee does not work on ANZAC Day and it would otherwise be a working day for them, you generally must still pay them their relevant daily pay (or average daily pay where applicable).
• You can only require an employee to work on ANZAC Day in certain circumstances, and it often depends on what their employment agreement says and whether the day is an otherwise working day.
• Common risk areas include misclassifying “otherwise working day”, forgetting alternative holidays, and having unclear public holiday clauses in employment agreements.
• Having properly drafted employment documents and clear rostering processes helps you stay compliant and avoid wage disputes or payroll liabilities.

If you’d like help reviewing your employment arrangements, public holiday clauses, or payroll risk areas, get in touch with Sprintlaw for a free, no-obligations chat on 0800 002 184 or email us at team@sprintlaw.co.nz.