With Christmas approaching, now is a good time to check your rosters, payroll and shutdown arrangements so there are no surprises over the holiday period.
Christmas and New Year public holidays
The NSW public holidays over the 2026 Christmas and New Year period are:
Friday 25 December 2026
Christmas Day
Saturday 26 December 2026
Boxing Day
Monday 28 December 2026
Additional public holiday for Boxing Day
Friday 1 January 2027
New Year’s Day
Why is Monday 28 December also a public holiday?
In NSW, when Christmas Day, Boxing Day or New Year’s Day falls on a Saturday or Sunday, an additional public holiday falls on the following Monday or Tuesday.
This year, Boxing Day falls on Saturday 26 December, so Monday 28 December is also a public holiday.
Important: Both Saturday 26 December and Monday 28 December are public holidays. The Monday does not replace the Saturday.
Christmas Day and New Year’s Day both fall on Fridays, so neither attracts an additional day this season. Sunday 27 December is an ordinary Sunday, with the usual applicable Sunday pay rules.
For more information about NSW public holidays, refer to the
Public Holidays Act 2010
.
What does this mean for payroll?
Public holiday entitlements can vary depending on an employee’s usual hours, award or enterprise agreement.
Employees working on a public holiday
Check the applicable award or enterprise agreement for public holiday rates and conditions. Both Boxing Day and the additional Monday must be treated as public holidays.
Employees taking the public holiday off
Full-time and part-time employees are generally entitled to their base rate for the ordinary hours they would otherwise have worked. Casual employees generally do not receive payment if they do not work.
Employees who do not usually work that day
A public holiday does not automatically create an entitlement to an extra day’s pay or another day off. Check the applicable award or agreement for any additional entitlements.
Employees already on annual leave
Where a public holiday falls on an employee’s usual working day during annual leave, it is paid as a public holiday and must not be deducted from their annual leave balance.
Example
A full-time employee who normally works Monday to Friday and takes the Christmas period off would generally receive ordinary public holiday pay for:
- Friday 25 December
- Monday 28 December
- Friday 1 January
They would not automatically receive an extra payment for Saturday’s Boxing Day holiday if they do not ordinarily work Saturdays, subject to any additional award or agreement entitlement.
Planning a Christmas shutdown?
Plan early and confirm your closure and reopening dates with employees in writing.
Under the
Vehicle Repair, Services and Retail Award 2020
,
employers must give affected employees at least 28 days’ written notice of a shutdown, unless a shorter period is agreed with the majority of relevant employees.
Any direction to take accrued annual leave must also be reasonable and provided in writing.
Before confirming your shutdown:
- Check employees’ annual leave balances.
- Give affected employees the required written notice.
- Confirm closure and reopening dates clearly.
- Check the applicable award or enterprise agreement.
Employees with insufficient annual leave cannot simply be directed to take unpaid leave. Annual leave in advance or unpaid leave may be agreed individually in writing.
If agreement cannot be reached, seek advice before proceeding.
Members with employees covered by another award or enterprise agreement should also check the shutdown requirements that apply to them.
Need help with your Christmas arrangements?
MTA NSW members can contact the Employment Relations Team for assistance with public holiday entitlements, payroll or proposed Christmas shutdown arrangements.