When paying an employee for a day in lieu it is important to pay at the correct rate.  Check the employment agreement to see if that sets out what the normal daily rate is.

If not look at what the worker would normally have worked if they had not been away on a day in lieu.  If that day would be x hours then the day in lieu should be paid at x hours.

A recent Employment Relations Authority decision has confirmed that the correct pay for a day in lieu is what the employee’s normal day would have been.

In this case the workers were on 12 hour shifts but were only paid for 8 hours on days in lieu for public holidays.

It pays to get your pay calculations right as it is estimated that the back pay owed could amount to $7million for this employer. Remember in addition to pay time and half for hours actually worked on public holidays.  If you need help please call me on (04) 473 6850.