Author Katrina Shanks, CEO Financial Advice NZ. Article originally published in stuff.co.nz.

OPINION: When the Te Kāhui o Matariki Public Holiday Bill was passed into law last year, there was much celebration.

Matariki marks the start of the Māori lunar calendar and occurs when the Matariki star cluster becomes visible in mid-winter.

It takes its name from the Māori name for a cluster of seven stars. In other parts of the world this cluster is known as the Pleiades, as well as the Seven Sisters (Greece), Mao (China), Krittika (India), Freyja’s hens (Scandinavia), and Subaru (Japan).

Until the law was passed to create the public holiday, Matariki had been celebrated by Māori iwi and whānau for many, many years.

It is celebrated each June or July, on a Friday nearest to when the cluster becomes visible. This year, the second such public holiday celebration will be held on July 14. Next year, it’s June 28.

The Government has published a list of Matariki public holiday dates out till 2052 to give communities and businesses certainty, and I’m sure businesses are grateful for that.

Many businesses welcome this official recognition, however it does bring complications and challenges around staffing and pay, as with all public holidays.

By law, employers are required to recognise the (now) 11 public holidays provided for in the Holidays Act 2003, but it seems every year these cause confusion for employers.

And let’s not forget to add in each region’s own anniversary holiday.

Of these, all shops must close for three-and-a-half days – Christmas Day, Good Friday, Easter Sunday, and until 1pm on Anzac Day. Some areas offer exemptions to allow for Easter Sunday trading.

There are no trading restrictions on any of the other public holidays, and that includes Matariki.

It’s vital businesses who are likely to trade on those days have factored Matariki into their rosters as well as made allowance in their payroll.

There’s one simple but vital rule of thumb employers should apply to this planning, and that is regardless of the type of employment staff are in – full-time, part-time, or casual – they are entitled by law to any benefits that come from working on public holidays.

It’s in the law and not complying can mean sizeable fines.

So, what are the basic rules around opening on a public holiday?

Simply, when a public holiday falls on a day your staff would usually work – for example Matariki next Friday, they are entitled to a day off, unless their contract or employment agreement says otherwise.

You can ask them to work on a public holiday, but they don’t have to agree.

But if you decide to stay open and you need them to work that day, they must be paid at time and a half – and in certain circumstances the employee will receive another paid day off later at a time to be agreed. This is known as a day in lieu.

However, if your staff work a public holiday that’s not a usual day they would work (maybe they have Fridays off so they can work weekends), they are entitled to time-and-a-half.

This differs in the case of Easter, and businesses should familiarise themselves with that.

In 2014, the law changed and public holidays that are not attached to a specific date (eg Waitangi Day and Anzac Day) may now be moved to a weekday (ie they may be Mondayised) if they were to fall on a Saturday or Sunday.

The issue of public holiday entitlements, and especially Mondayisation, is complicated.

You should note that if an employee doesn’t work on a public holiday that would normally be a working day for them, the employee is paid their daily pay for the day. For most employees working a regular pattern of hours, the pay cycle continues unchanged.

If the public holiday is on a day that is not a normal working day for the employee, and they don’t work on it, they are not entitled to a payment for the day. For example, an employee who doesn’t work on Fridays is not entitled to any payment for Good Friday (unless they work).

Armed with all the information employers need, it’s up to you to decide what is going work best for your business.

The cost of paying staff on a public holiday (and then finding a lieu day if required) can put businesses under all sorts of pressure.

Remember, businesses of all sorts that open on a public holiday can set their own prices for products and services, including charging a surcharge, to help offset these extra costs.

But, as the Commerce Commission says, a surcharge must be clearly disclosed, for example, by adding information to your website or putting a sign outside your door. “Customers must be aware a surcharge will be payable before they make a decision to purchase or engage the service, so they can decide whether to pay the surcharge or go elsewhere. In addition, the reason for any surcharge must be accurately described and must not be capable of misleading consumers.”

It’s a matter of doing your numbers:

  • Is the surcharge likely cover the extra wages. What happened last year?
  • Is it sometimes better to not open – depending on the amount of business you’re likely to do.
  • Do you need to stay open to survive at any cost? But how good is that for you and your staff. Remember, you all need a break sometime.
  • See what the market tells you. What are your competitors doing. Is there a chance for you to get a competitive advantage and work on day and swap it for a quiet day during the week. Maybe this is already part of your strategy – or could be.

It’s all about understanding your business and your customers. Remember, your customers are your lifeblood, so you need to have them top of mind always.

Note: The Matariki legislation was just one recent change to leave law – but more could be coming. Amendments to the Holidays Act are about to go through Parliament. It’s been delayed several times, but MBIE says it’s expected to be introduced to Parliament soon, though it won’t pass before the election.

That means waiting until next year at the earliest.