Floating Holidays - Is It Time for a Flexible Approach to Public Holidays?

Teresa Romanovsky • January 9, 2024

Should You Allow Employees to Work on Public Holidays in Exchange for Leave in Lieu?


Recently, Australian workplaces have grappled with allowing employees to work on public holidays, particularly on contentious dates like the upcoming Australia Day. Notable companies such as Telstra, the University of Wollongong, and KPMG Australia have adopted flexible policies. These policies permit employees to work on Australia Day, offering them the option to take another day off in lieu. This approach attempts to navigate the complex emotions and historical contexts surrounding this holiday.

A comprehensive survey conducted by Perkbox Australia, involving more than 2,400 employees, provides insightful data on this trend. The survey reveals that a significant 58% of respondents are willing to work on public holidays in exchange for an extra day of annual leave. This finding is particularly interesting when considering that only 38.6% of those surveyed expressed a preference for taking a day off on Australia Day. This suggests a growing inclination towards flexible work arrangements among Australian employees.


However, this trend towards flexibility is only consistent across some holidays. The survey found that a substantial majority, 83.6%, of employees prefer not to work on Christmas Day, even if it meant receiving extra paid leave. Similar sentiments are observed for New Year's Day and Good Friday, with 71.1% and 50.5% of employees, respectively preferring to take these days off. These preferences highlight the diverse significance of public holidays for Australian workers.


Ross McDonald, the country lead for Perkbox Australia, pointed out that companies must explore creative, tailored solutions to address employee challenges in situations where pay raises are not feasible. He emphasized that personalising staff benefits, such as allowing employees to work on a public holiday in exchange for additional leave, can be a straightforward yet meaningful way to boost workplace engagement and morale.


The Concept of Floating Public Holidays


Karen Kirton from Amplify HR discussed the idea of 'floating holidays' - public holidays that employees can exchange for days that hold more personal significance. This concept gained prominence around Australia Day last year, with media reports highlighting that many large organisations had enabled their employees to take different days off. With Australia's diverse demographic, where 29% of the population was born overseas, and 48% have at least one parent born overseas, the relevance and significance of traditional public holidays can vary significantly.


Given that 44% of Australians identify as Christian and almost another 40% have no religious affiliation, the Christian basis of many national public holidays may not resonate with a significant portion of the population. Employees might find no personal significance in Christian holidays, Australia Day, or the King’s Birthday. In contrast, days like the AFL Grand Final Day and Melbourne Cup Day may hold no relevance for non-sports fans. Implementing a policy for floating public holidays can be a powerful statement of workplace diversity and inclusion.


Setting up a floating public holidays policy requires careful consideration. Decisions need to be made about which days can be swapped, whether there should be a cap on the number of swappable holidays, and if employees need to provide a reason for the swap. It's also crucial to consider how these swaps will be managed in payroll, especially since the Fair Work Act mandates that employees are entitled to have public holidays off. Depending on an employee's employment status (casual, part-time, or full-time), they may also be entitled to higher pay rates on public holidays. Therefore, it's essential to ensure accurate payroll management for swapped holidays.


The Growing Contention Around Australia Day


Australia Day, observed on January 26th, has become a focal point of contention due to its historical and cultural implications. For many Indigenous Australians, this date symbolises the beginning of colonial occupation, dispossession, and profound cultural disruption. It represents the start of a period marked by policies that led to the Stolen Generations, loss of land and culture, and widespread discrimination.


To many Aboriginal and Torres Strait Islander peoples, January 26th is referred to as "Invasion Day," "Survival Day," or "Day of Mourning." It is seen as a day that commemorates a history of pain, trauma, and the enduring impacts of colonisation. The history taught about Australia Day often overlooks or minimises the experiences and perspectives of Indigenous Australians. There is a growing recognition of the need to acknowledge and teach the full history of Australia, including the impacts of colonisation on Indigenous communities.


There is an increasing call from various groups, including Indigenous organisations, social justice groups, and some political figures, to change the date of Australia Day. They argue that a national day should be inclusive and respectful of all Australians, including the First Nations people. The debate around Australia Day is also part of a broader conversation about national identity, values, and what it means to be Australian in the 21st century. This includes discussions about reconciliation, recognition of Indigenous rights, and how to commemorate Australia's history in an inclusive and respectful way.


The contention around Australia Day is occurring in the context of global movements challenging historical narratives and seeking to address historical injustices, such as the Black Lives Matter movement. As a result, Australia Day has become a platform for promoting greater understanding, reconciliation, and change in how Australian history is commemorated and taught.


Conclusion


The trend towards flexible work policies on public holidays, especially around Australia Day, reflects a changing workplace dynamic in Australia. It acknowledges the diverse backgrounds and beliefs of the workforce. At the same time, the growing contention around Australia Day calls for a deeper understanding and respect for the country's complex history. By adapting workplace policies and national celebrations, Australia can move towards a more inclusive and respectful future for all its inhabitants. This approach enhances employee satisfaction and engagement and aligns with broader societal movements towards inclusivity and recognition of historical complexities.

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