The AIG says the six states are adopting five different approaches to the Christmas and New Year holidays, and the group wants amendments made to awards that will make the system easier to understand.
"The way that public holidays are proclaimed is vitally important, given that it impacts upon the penalty rates payable for days worked," AIG chief executive Heather Ridout said in a statement.
The problem with this year's public holiday lineup is that Christmas Day, Boxing Day and New Year's Day all fall on weekends. The states and territories have taken different approaches because of this, with some proclaiming substitute days or additional days – and some using a mixture of both.
For example, if a business in New South Wales is open on Christmas, it must pay holiday wages for Saturday, December 25, and then pay public holiday wages again on Tuesday, December 28, which is an additional public holiday as proclaimed by the State Government.
In Western Australia, employers must pay public holiday wages on Christmas Day (December 25), Boxing Day (December 26) and the next two days (December 27 and 28), which have been declared as additional public holidays.
In Victoria, businesses do not need to pay public holiday wages on Christmas Day, but they do need to pay them on Boxing Day, and on December 27 which is a replacement public holiday for Christmas Day.
Ridout says this is causing significant confusion among businesses, many of which will have to pay two sets of public holiday wages if their state or territory declares "additional" public holidays.
"In an effort to head-off this potentially costly confusion and uncertainty, AI Group has today applied to Fair Work Australia to take action which will clarify the situation and provide consistency across the country."
Council of Small Businesses of Australia chief executive Peter Strong agrees, and says businesses shouldn't be forced to "double dip" and pay two days' worth of public holiday wages for one single working day.
"I understand the issue. Because people working on Christmas Day say, we should be getting something a little extra. That's the human reaction. But from the SME perspective, why do I have to pay twice?"
The AIG is specifically targeting the Manufacturing Modern Award, but it also says this clause is common in other awards and other industries will be affected over the holiday period.
The amendment would require:
- Where Christmas Day falls on a Saturday or Sunday, public holiday penalty rates are payable for any work performed on December 27 and public holiday penalty rates are not payable on December 25;
- Where Boxing Day falls on a Saturday or Sunday, public holiday penalty rates are payable for any work performed on December 28 and public holiday penalty rates are not payable on December 26;
- Where New Year's Day or Australia Day fall on a Saturday or Sunday, public holiday penalty rates are payable for any work performed on the following Monday and public holiday penalty rates are not payable on the original day.
Ridout argues the previous federal awards maintained this structure, but the introduction of Modern Awards and National Employment Standards has altered the way additional public holidays, or substitute public holidays, would be paid.
"Many employers in many industries need to operate over the Christmas/New Year period, including for example, employers with continuous manufacturing processes."
"The Christmas/New Year period is fast approaching and employers need to make decisions about operational arrangements, plus give their employees notice of work requirements," Ridout said.
Strong says the main issue is that businesses can't afford to pay two sets of holiday wages, especially after the recent interest rate rise, and SMEs should be given leniency.
"The right answer is that workers should be only paid once. I don't particularly care which day it is, but we should make sure it's once, and recognise it. Let's all agree on a day, and then pay on that particular day."
This issue will almost certainly come up again next year, with Anzac Day and Easter falling on the same weekend in 2011. But for now, here is the definitive guide to the Christmas 2010 public holiday:
New South Wales and Queensland
Christmas Day on Saturday, 25 December is classified as a public holiday. A substitute holiday for Boxing Day will be held on Monday 27 December, while an additional holiday for Christmas Day will be held on Tuesday, 28 December.
Saturday 1 January is also declared a public holiday, while an additional holiday will also be held on Monday, 3 January.
Victoria
Christmas Day on Saturday, 25 December, is not a public a holiday. A substitute public holiday will be held on Monday, 27 December.
Boxing Day on Sunday 26 December is declared a public holiday, and an additional public holiday will be held on Tuesday, 28 December.
New Year's Day will be declared a public holiday on Saturday, 1 January, and an additional holiday will also be held on Monday, 3 January.
South Australia
Christmas Day on Saturday, 25 December is not a public holiday, and a substitute public holiday will be held on Monday, 27 December.
An additional holiday for Proclamation Day will be held on Tuesday, 28 December.
New Year's Day will not be declared a public holiday on Saturday, 1 January, with a substitute public holiday to be held on Monday, 3 January.
Western Australia
Christmas Day on Saturday 25 December, and Boxing Day on Sunday 26 December, are both public holidays. But additional public holidays will be provided for both on Monday 27 December and Tuesday 28 December respectively.
An additional holiday for New Year's Day will be held on Monday 3 January.
Tasmania, Australian Capital Territory and Northern Territory
Christmas Day and Boxing Day are not classified as public holidays, with substitute holidays to be held on Monday, 27 December and Tuesday, 28 December.
New Year's Day will not be classified as a public holiday either, with a substitute holiday to be held on Monday, 3 January.
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