As the festive season approaches, Australian businesses face the annual challenge of staffing during public holidays. For the nation’s 2.5 million casual workers, Christmas and Boxing Day bring specific rights and entitlements that every employer must understand. Recent landmark court rulings have fundamentally changed how public holiday rostering must be handled, making compliance more critical than ever.
This guide breaks down the essential rules for rostering casual staff during the 2025 Christmas period, covering everything from the right to refuse work and penalty rate calculations to new casual conversion pathways.
Can a Casual Employee Refuse to Work on Christmas Day?
Yes. Under the National Employment Standards (NES), all employees have a fundamental right to be absent on a public holiday. However, this operates through a strict request-and-response process, not an automatic right to refuse any shift.
A pivotal 2023 Full Federal Court decision (CFMMEU v OS MCAP Pty Ltd) clarified that simply publishing a roster with a casual worker scheduled for a public holiday is not a request—it is an unlawful requirement. A “request” must give the employee a genuine choice.
The fairness of a request or refusal depends on several factors, which are summarised in the table below for easy comparison:
| Assessment Factor | What Favours an “Employer’s Request”? |
What Favours an “Employee’s Refusal”? |
|
Nature of the Workplace |
The business needs to operate on the public holiday (e.g., hospital, emergency services, holiday retail). |
The workplace is typically closed on public holidays. |
|
Employee’s Personal Circumstances |
/ |
Has family responsibilities, pre-booked travel, or religious observances. |
| Reasonable Expectation | The employment contract or industry practice indicates public holiday work may be required. |
The employee has never been asked to work on a public holiday before. |
| Remuneration & Compensation | Substantial public holiday penalty rates are offered. |
No or insufficient penalty rates are offered. |
| Amount of Notice | The employer provides the request several weeks in advance. |
The employee provides notice of refusal as soon as possible after the request. |
Key Employer Takeaway:
When issuing a roster, you must clearly distinguish that shifts on public holidays are a “request.” An effective method is to include a note on draft rosters stating: “Shifts marked on public holidays are a request to work. Please notify management by [date] if you wish to accept or discuss this shift.”
Pay Calculation: Holiday Penalties & Casual Loading
This is a common payroll error point. For casuals working on a public holiday, you must pay the public holiday penalty rate stipulated in the relevant modern award or enterprise agreement.
The crucial point is: the casual loading (typically 25%) and the public holiday penalty are NOT simply added together. The standard calculation method applies the penalty to the base rate of pay (the rate for a permanent employee in the same role).
For clarity, the correct calculation method is illustrated below with a concrete example:
| Calculation Step | Example Amount |
Explanation |
| 1. Determine Base Hourly Rate | $25.00/hour |
The base hourly rate for a permanent full-time employee in that role. |
| 2. Apply Public Holiday Penalty Rate (e.g., 250%) | $25.00 x 2.5 = $62.50/hour |
This is the final hourly rate for the casual working on the public holiday. |
| 3. Casual Loading (25%) | Not added separately |
The public holiday penalty rate is considered to already incorporate compensation for the casual nature of work. |
| 4. Total Pay for a 3-hour Shift | $62.50 x 3 = $187.50 |
Assuming the 3-hour minimum engagement period is met. |
Important Note: This is a general principle. You must check the specific award that applies to your business, as a small number of industries may have different cumulative calculation methods. Incorrect payment can lead to significant back-pay liabilities. Core Rights & Compliance Checklist
Minimum Engagement Periods
Most modern awards include a minimum engagement period for casual employees. If you roster a casual for a shift, you must pay them for a minimum number of hours, even if you send them home early.
- Common Requirement: For example, the General Retail Industry Award 2020 mandates a minimum 3-hour engagement per shift.
- Practical Impact: On Christmas Day, even if business is slow and a casual is sent home after 1 hour, you must still pay for 3 hours at the applicable public holiday penalty rate.
Casual Conversion to Permanent: 2025 Update
Long-term casuals now have a clearer pathway to convert to permanent employment. This affects employees you regularly rely on during peak periods.
- Eligibility: Employed for at least 12 months in a small business (<15 employees), or 6 months in a large business, with a regular and continuing pattern of hours.
- Process: The employee can notify the employer in writing of their desire to convert. The employer must respond in writing within 21 days.
- Grounds for Refusal: Can only be refused on reasonable grounds, such as the position ceasing to exist in the next 12 months, or requiring a significant adjustment to the employee’s hours.
2025 Festive Season Employer Compliance Checklist
To ensure a smooth and compliant process, follow these steps:
- Plan Early: Map out holiday trading days and start the consultation process well in advance.
- Train Managers: Ensure anyone making rosters understands the “request” process and the factors for assessing reasonableness.
- Audit Payroll: Verify your payroll software correctly calculates casuals’ public holiday pay based on the base rate of pay, not the casual rate.
- Review Contracts & Policies: Update employment contracts and implement a clear Public Holiday Rostering Policy.
- Communicate Transparently: Have clear conversations with your casual team about expectations, availability, and their rights.
Automate Public Holiday Compliance with Workstem
Manually calculating public holiday pay across different awards, employment types, and states is complex and error-prone. Workstem’s payroll and workforce management software automates this for you:
- Award Interpretation: Automatically applies the correct public holiday penalty rates from over 150 Modern Awards.
- State-Based Rules: System updates with all state and territory public holiday calendars.
- Accurate Calculations: Precisely calculates pay for employees who work or take the day off.
- Roster Compliance: Flags potential issues with public holiday staffing and refusals.
Frequently Asked Questions (FAQ)
Q1: If my business must open on Christmas Day (e.g., a restaurant), can I force a casual worker to work?
A: You cannot “force” them. You must still follow the “reasonable request” process. In such industries, your request is likely to be considered reasonable, but an employee can still refuse based on reasonable personal grounds (e.g., proven family commitments). The key is to engage in dialogue, not issue a unilateral directive.
Q2: Is a casual employee entitled to any payment for a public holiday they don’t work?
A: Generally, no. Unlike permanent employees who receive paid leave, casuals are paid only for hours worked. They are not entitled to “paid” leave for the public holiday itself.
Q3: Can we ask employees to sign an agreement to work on a public holiday after the roster is published?
A: This retroactive approach is high-risk and may not satisfy the legal requirement for a “request” made beforehand. Best practice is to seek confirmation or address refusals before publishing the final roster or while it is clearly marked as a draft.
Q4: What is a concrete example of a “reasonable refusal”?
A: Reasonable refusals are typically linked to specific personal circumstances, such as: a pre-planned and non-changeable family gathering (with reasonable notice provided), child care responsibilities, attendance at a significant religious ceremony, or a pre-booked medical appointment.
Q5: How should I handle an “unreasonable refusal” from an employee?
A: If you believe a refusal is unreasonable (e.g., the employee provides no reason, or a very trivial reason despite generous compensation and ample notice), you may inform them in writing that their refusal is deemed unreasonable and therefore they are required to work the rostered shift. However, this carries legal risk, and seeking professional legal advice before taking this step is recommended.
Q6: How much notice must an employer give to request work on a public holiday?
A: There’s no fixed national timeframe, but “reasonable notice” is required. Factors considered:
- Industry norms (e.g., retail/hospitality often require advance notice due to trading hours)
- The employee’s personal circumstances
- Urgency of business needs
- What’s written in employment contracts or awards
Best practice: Provide at least 4 weeks’ notice where possible and document all requests.
Q7: Can an employer force employees to take annual leave on a public holiday?
A: No, employers generally cannot require employees to take annual leave on a public holiday. The public holiday should be treated separately from annual leave entitlements.
Q8: What if a public holiday falls on a weekend and the business is closed?
A: If the business is normally closed on weekends, and a public holiday falls on a Saturday/Sunday:
- Permanent employees who don’t normally work weekends don’t get paid for that day
- No substitute day is automatically created unless one is declared by the state/territory government
Q9: Are apprentices entitled to public holiday penalty rates?
A: Yes, apprentices receive public holiday penalty rates based on their percentage of the full trade rate. Check the specific award for exact calculations, as some have special apprentice provisions.
Q10: How are public holidays treated for shift workers?
A: For shift workers, if a public holiday falls on a rostered day off, they generally don’t get paid. If they work on the public holiday, they receive penalty rates. Some awards provide additional entitlements for shift workers on public holidays.
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