Public holiday substitution is the legal process under New Zealand’s Holidays Act 2003 that allows an employer and employee to agree to transfer a public holiday to a different day, effectively swapping the day the holiday is observed. When a substitution is agreed, the employee works on the original public holiday and takes the substituted day off instead, receiving the same entitlements (time-and-a-half pay and an alternative day off) as if they had not worked on the public holiday.
This mechanism gives New Zealand employers flexibility to manage staffing around public holidays while respecting employee rights. The [Employment New Zealand](https://www.employment.govt.nz leave-and-holidays/public-holidays/) guidance makes clear that substitution is voluntary — neither employer nor employee can unilaterally impose it.
Key Takeaways
- Public holiday substitution is a voluntary agreement between employer and employee to swap a public holiday for another day, governed by New Zealand’s Holidays Act 2003.
- Both parties must genuinely agree — substitution cannot be forced by the employer.
- The substituted day must be a day the employee would otherwise work, and the replacement day must also be a working day for the employee.
- Employees still receive time-and-a-half for working the original public holiday plus an alternative day off on the substituted day.
- Written documentation of the substitution agreement protects both parties.
What Is Public Holiday Substitution?
Under New Zealand law, public holidays are days when most workers have the right to a day off with pay. The Holidays Act 2003 sets out eight paid public holidays for all employees, plus regional anniversaries.
Public holiday substitution allows these holidays to be shifted to a different date by mutual agreement. The most common use case is when a public holiday falls on a weekend and both the employer and employee agree to observe it on the following Monday or Tuesday instead.
For example, if Waitangi Day (6 February) falls on a Saturday, an employer and employee may agree to substitute it to the following Monday. The employee works on Saturday as normal, and takes Monday off as the public holiday.
How Substitution Works Under the Holidays Act
The Holidays Act 2003, specifically sections 44–49, sets out the rules for public holiday substitution. The key requirements are:
1. Genuine Agreement
Both employer and employee must agree to the substitution. An employer cannot require an employee to swap a public holiday. The agreement must be voluntary and documented.
2. The Employee Would Otherwise Work
The original public holiday must be a day on which the employee would otherwise work. If the employee is already rostered off on that day, substitution does not apply — there is nothing to swap.
3. The Substituted Day Must Be a Working Day
The replacement day must be a day the employee would normally work. Swapping a public holiday to a non-working day defeats the purpose and is not permitted.
4. Alternative Day Entitlement
When an employee works on a public holiday (even under a substitution agreement), they are entitled to:
- Time-and-a-half — Their relevant daily pay at 1.5x for the hours worked on the public holiday.
- An alternative holiday (day in lieu) — A full paid day off to be taken at a later date.
This means the employee receives the same financial and leave entitlements regardless of whether the substitution happens. The substitution simply changes which day the holiday is observed, not the benefit.
Employer vs Employee Substitution
The Holidays Act distinguishes between two scenarios:
| Scenario | Who Initiates | Key Requirement |
|---|---|---|
| Employer-initiated substitution | Employer proposes the swap | Must be agreed in writing; cannot force the employee |
| Employee-initiated substitution | Employee proposes the swap | Employer must not unreasonably refuse if it fits business needs |
In practice, employer-initiated substitution is more common when a public holiday falls on a weekend and the business operates Monday to Friday. The employer proposes observing the holiday on Monday instead, and the employee agrees.
Employee-initiated substitution happens when an employee wants to work on a public holiday for personal reasons (e.g., earning time-and-a-half) and agrees to swap to a different day.
Common Substitution Scenarios
Public Holiday on a Weekend
This is the most frequent substitution. If Christmas Day falls on a Saturday, for example, many employers and employees agree to observe it on the following Monday. Employment New Zealand publishes guidance on which days are commonly substituted for each public holiday.
Shift Workers
Shift workers whose rosters do not align with the standard Monday–Friday pattern may need substitution to ensure they receive their public holiday entitlements. The substituted day must match a day the employee would otherwise work on their roster.
Part-Time Workers
For part-time employees, the substituted day must be one of their regular working days. If a part-time employee works Monday, Wednesday, and Friday, the substituted day must fall on one of those days.
What Happens Without Agreement
If no substitution agreement is reached, the employee’s rights remain unchanged:
- If the employee works on the public holiday, they receive time-and-a-half and an alternative day off.
- If the employee does not work on the public holiday, they receive their relevant daily pay as normal.
The only difference is the calendar date on which the holiday is observed. The employee’s financial entitlements are the same either way.
Recording and Compliance
To maintain compliance:
- Document the agreement in writing — Record the date of the original public holiday, the agreed substituted date, and both parties’ signatures.
- Keep records for at least six years — The Holidays Act requires employers to retain employment records for six years.
- Update your payroll system — Ensure the substituted date is reflected in time-off tracking so the employee is paid correctly.
- Communicate the change — Notify the employee’s team so scheduling and coverage plans reflect the substitution.
A leave management system that supports holiday substitution tracking eliminates manual record-keeping and reduces the risk of payroll errors.
Frequently Asked Questions
Can my employer force me to substitute a public holiday?
No. Under the Holidays Act 2003, substitution requires genuine agreement from both parties. An employer cannot unilaterally impose a substitution. If an employee does not want to swap, the original public holiday entitlements apply.
Do I still get time-and-a-half if I work on a substituted public holiday?
Yes. When you work on a public holiday — whether the original date or a substituted date — you are entitled to time-and-a-half pay for the hours worked, plus an alternative day off. The substitution does not reduce your entitlements.
How do I record a public holiday substitution?
Document the agreement in writing, including the original public holiday date, the agreed substituted date, and signatures from both employer and employee. Retain this record for at least six years as required by the Holidays Act.
What if a public holiday falls on my day off?
If a public holiday falls on a day you would not normally work, you are not entitled to a day off or alternative holiday. However, if you and your employer agree to substitute it to a working day, you can observe the holiday on that day instead.
Are regional anniversary days also substitutable?
Yes. Anniversary days — such as Auckland Anniversary, Wellington Anniversary, and Canterbury Anniversary — are treated as public holidays under the Holidays Act. The same substitution rules apply: genuine agreement, working day for the employee, and proper documentation.
leave emails? Track your employee's leave with Leave Balance
