11 May 2015
    
IN THIS ISSUE
Quintas Quarterly Newsletter
Introduction
Quintas Reception - A day in the life
Keyman Insurance - Insure Some of your Biggest Business Risks
Public holidays and part-time workers - what are the entitlements?
What happens the family home if I become insolvent?
Tax Update
Recent News
    
send
subscribe
feedback
    
    
CONTACT
Heron House,
Blackpool Park,
Blackpool,
Cork.

tel: +353 21 4641400
fax: +353 21 4220055
web: www.quintas.ie

    
    
    
Public holidays and part-time workers - what are the entitlements?
by Sally Turner, Payroll

Quintas provide a client payroll bureau where we process the payrolls on behalf of our clients.  We receive numerous queries about Public Holidays and the entitlements for same. In this article I will outline the various Public Holidays we have here in Ireland, explain from a payroll perspective who is entitled to them and how you can calculate the payments for both full-time and part-time employees.

Public Holidays

There are 9 Public Holidays listed in the Organisation of Working Time Act 1997, they are:-

  • 1st January – New Year’s Day
  • 17th March – St. Patrick’s Day
  • Easter Monday
  • First Monday in May
  • First Monday in June
  • First Monday in August
  • Last Monday in October
  • 25th December – Christmas Day
  • 26th December – St. Stephen’s Day.

Good Friday, Christmas Eve and New Year’s Eve are not public holidays and are treated as annual leave, if an employee does not work on these days.  The phrase ‘bank holiday’ has no legal meaning.  When a public holiday falls on a Saturday or Sunday, the public holiday remains on that day. i.e. it does not change to the following Monday.

Public Holiday Benefits

An employee is entitled to their employer’s choice of the following, in respect of a public holiday:-

  • A paid day off on that day
  • A paid day off within a month of that day
  • An additional day of annual leave
  • An additional days pay.

If an employer does not nominate one option 21 days before the holiday, the employee automatically receives a paid day off on that public holiday.

Full-time employees are immediately entitled to a public holiday benefit, which means if a full-time employee commences employment on a Friday and the next Monday is a public holiday, that employee will be entitled to a full public holiday entitlement for the public holiday.

Part-time/casual employees must have worked at least 40 hours in the 5 weeks ending on the day before the public holiday to qualify for the public holiday benefit.  This requirement has not changed following the introduction of the Protection of the Employees (Part-time Work) Act 2001. 

Part-time employees, who have not worked at least 40 hours in the 5 weeks period immediately preceding a public holiday, are not entitled to a public holiday in respect of that day.

When a public holiday falls on a day on which the employee normally works, or is normally scheduled to work, then:

  • A full-time employee is entitled to one of the public holiday benefits listed,
  • A part-time employee must have satisfied the above conditions of having worked 40 hours in the previous 5 weeks to be entitled to one of the public holiday benefits listed.

Where a public holiday falls on a day on which an employee is normally off work, or is not schedule to work, then:

  • A full-time employee is entitled to a public holiday benefit equal to 1/5th of their normal weekly pay in respect of the normal weekly hours last worked by the employee before the public holiday,
  • A part-time employee is also entitled to a public holiday benefit equal to 1/5th of their  normal weekly pay, based on the average weekly pay (including any regular bonus or allowances, but excluding overtime) in the 13 weeks worked immediately prior to the public holiday, assuming they have worked 40 hours or more in the previous 5 weeks.

Where an employee works 6 days per week and a public holiday falls on a day which he is normally scheduled to work, he is entitled to one of the benefits listed.  Where the public holiday falls on a day on which he is not normally required to work, he is still only entitled to 1/5th of his normal weekly pay, provided that the amount does not exceed the amount that the employee would have been paid if it was a day he normally worked.

Where an employee ceased to be employed at any time during the week ending on the day before a public holiday (i.e. in the 7 day period immediately preceding the public holiday), and the employee has worked for his employer during the previous 4 weeks, the employee is entitled to be paid a public holiday entitlement for the public holiday, calculated at the appropriate daily rate.  A part-time employee must also have satisfied the condition of having worked 40 hours in the preceding 5 week period ending on a day before the public holiday.

Payment for Public Holidays

The Organisation of Working Time (Determination of Pay for Holidays) Regulations 1997 (S.I No. 475/1997) sets out the method for calculating the appropriate daily rate of an employee’s pay for public holidays.  Where an employee works, or is normally required to work on a public holiday, the daily rate is calculated as follows:

If an employee’s pay is calculated wholly be it reference to a time rate, or a fixed rate, or salary, or any other rate that does not vary in relation to the work done, the normal daily rate shall be the sum (including any regular bonus or allowance, the amount of which does not vary in relation to the work done, but excluding pay for overtime) that is paid in respect of the normal daily working hours last worked by him before the public holiday commences.

If an employee’s pay is not calculated as above, the normal daily rate of pay is the average daily pay (excluding pay for overtime) calculated over:

  • The period of 13 weeks ended immediately before the public holiday, or
  • If no time was worked during the period, the period of 13 weeks ending on the day that was last worked before that public holiday.

However, an employer may decide to pay an employee more than the minimum entitlements as specified above.

Many people incorrectly assume that all hours worked on a public holiday should be paid at double time (twice the normal rate of pay).  There is no specific provision in legislation for the payment of double time when an employee works on a public holiday.  However, what happens is that an employee, who is entitled to a paid day off works on a public holiday, is also entitled to be paid for any hours which he or she agrees to work on a public holiday. So, if an employee who is entitled to a day off work with pay on a public holiday, agrees to work on the public holiday he will receive his public holiday benefit, say a days pay, plus payment for the actual hours worked, which combined are equal to two days pay.

If a part-time employee, who works 4 hours per day, is entitled to a day off work with pay on a public holiday, they will be paid for the 4 hours they would normally have worked on that day.  However, if they agreed to work on the public holiday for 8 hours, they would be entitled to be paid for 8 hours actually worked, making a total of 12 hours pay due for the public holiday.  The law provides for a statutory minimum entitlement to be paid.  However, there is nothing to prevent employers and employees agreeing more favourable terms for the employee.

Public Holiday falling on a day which the employee does not normally work.

Where a public holiday falls on a day, which the employee would not normally work, an employee’s daily rate is calculated as follows:

  • 1/5th of a normal weekly rate including any regular bonus or allowance, but excluding overtime, paid in respect of the normal weekly hours last worked  before the public holiday.  This applies where the employee’s pay is calculated wholly by reference to a time rate, or a fixed rate, or salary, or any other rate that does not vary in relation to the work done.
  • Where the employee’s pay does vary, the relevant rate of pay for a public holiday is 1/5th of the average weekly pay (excluding pay for overtime) but subject to a maximum of a normal day’s pay calculated over:

1)      The period of 13 weeks ending immediately before the public holiday, or

2)      If no time was worked by him during that period, the period of 13 weeks ending on the day that was last worked before that public holiday.

Sick Leave and Work Absence Affecting Public Holiday Benefits

An employee who is absent from work immediately before a public holiday will not be entitled to a public holiday benefit, if the absence is:

  • In excess of 52 consecutive weeks by reason of occupational injury,
  • In excess of 26 consecutive weeks by reason of illness or injury,
  • In excess of 13 consecutive weeks by reason of an absence authorised by the employer, including lay off,
  • Because they are out on strike,
  • In excess of the first 13 weeks of carer’s leave for each relevant person being cared for.

An employee absent on maternity or additional maternity leave, adoptive or additional adoptive leave, parental leave or force majeure leave, maintains their normal public holiday entitlement during their absence.  As employees who are absent from work on various forms of leave cannot avail of a paid day off (an employee cannot be on 2 types of leave at the same time), the most likely scenario is that the entitlement will be carried forward to when the employee is due to resume work.

Sally Turner

Payroll Department

Quintas


If you have any queries in relation to the above or indeed are interested in outsourcing the payroll function of your business contact us on 021 4641400 or email info@quintas.ie

Comment (0)
    
Email Newsletter Software by Newsweaver