When Christmas Day falls on a Saturday, most states declare the following Monday or Tuesday a public holiday instead. The question that follows is whether the substituted day is a real public holiday carrying full public holiday pay, or some lesser version of one. The Fair Work Act answers it in a single subsection, and the answer is that the substituted day is the public holiday.
Key takeaways
- Where a state law substitutes a day, the substituted day is the public holiday under section 115(2). The original day is not.
- The substituted day carries full public holiday pay and full penalty rates. It is not a lesser day.
- You normally get one holiday, not two. The substitute replaces rather than adds.
- Some states declare both days as holidays in their own legislation, which is a state choice rather than a Fair Work Act rule.
- An award, agreement or an arrangement with an award-free employee can also substitute a different day.
The substituted day is the public holiday
Section 115(1) defines a public holiday as either one of the eight named national days, or a day declared by or under a state or territory law. Section 115(2) then deals with substitution directly:
Where a state or territory law substitutes another day for one of the listed days, the substituted day is the public holiday and the original day is not.
Everything follows from that. If the substituted Monday is the public holiday, then section 114 gives you the right to be absent on the Monday, section 116 pays your base rate for the Monday, and your award's public holiday penalty applies to Monday hours. The Saturday, having been substituted away, is an ordinary Saturday attracting only the normal weekend penalty.
How each state handles it
Substitution is state law, so the detail varies and is set by each state's public holidays legislation rather than by the Fair Work Act. The common pattern is that Christmas Day, Boxing Day and New Year's Day are substituted to the following weekdays when they land on a weekend, while days already fixed to a weekday, such as Good Friday, Easter Monday and the various Labour Days, never need substitution.
Anzac Day is the notable exception in several states, where it is marked on 25 April whatever day that is, with no substitute. Because the practice differs by jurisdiction and by year, the reliable source is your own state's gazetted list rather than a general rule. Each state's dates, including substituted days, are on the public holidays hub, and the year ahead is set out on the 2027 public holiday calendar.
When you get both days
Occasionally you will see both the original weekend day and a weekday substitute treated as public holidays. That happens where the state's own legislation declares both, which section 115(1)(b) then picks up, rather than through the substitution mechanism in section 115(2).
The distinction matters for pay. Where both days are genuinely declared, both attract public holiday treatment, so weekend hours worked on the original day carry the public holiday penalty rather than the weekend penalty. Where the state has substituted, only the substituted day does. Check your state's list rather than assuming, because this is the single most common source of December payroll disputes.
Substitution by agreement
State law is not the only route. Sections 115(3) and 115(4) allow a modern award or enterprise agreement to provide for substituting a different day, and allow an employer and an award-free employee to agree to substitute a day.
This is how businesses that must trade on a public holiday, or that observe a different cultural or religious calendar, move the day to one that suits both sides. The substituted day then becomes the public holiday for that employee, with the same consequences as a state substitution. The mechanism is optional and requires the award term or the agreement; an employer cannot unilaterally move a public holiday.
Common questions
If Christmas Day is a Saturday and I work it, do I get public holiday rates?
Only if the Saturday is still a public holiday in your state. Where the state substituted the following Monday, the Saturday is an ordinary Saturday and attracts the Saturday penalty, while the Monday carries the public holiday penalty. Where the state declared both days, both attract public holiday rates.
Do I get an extra day off because the holiday fell on a weekend?
Generally no. Substitution moves the holiday rather than adding one. The exception is where a state declares both days.
Does a substituted day count if it falls inside my annual leave?
Yes. It is the public holiday, so section 89(1) applies and it is not deducted from your leave balance. The annual leave planner uses the gazetted dates, including substitutes, when working out what a break costs.
Can my employer choose to ignore the substitute day?
No. Where state law substitutes a day, that day is the public holiday and the usual entitlements attach. Moving it again requires the award, an enterprise agreement, or agreement with an award-free employee.
Author & reviewer
Sarah has spent over a decade advising Australian SMBs on Fair Work, NES compliance, and payroll. Based in Sydney, she has worked across hospitality, retail and professional services.