Some employers are giving their employees the choice to work on January 26 this year, despite the Australia Day public holiday.

Big names such as Woolworth, Telstra, Deloitte and Wesfarmers, the federal government and some state governments are offering employees another day off in exchange for working on January 26 if they choose to do so, with Prime Minister Anthony Albanese saying it was up to employers and workers whether they worked on Australia Day.

The move comes as a result of an increasing shift in public attitude towards the January 26 date and businesses recognising it is not a day of celebration for all Australians. So, what do the laws say about sub­sti­tute a pub­lic holiday for another day?

I want to work on Australia Day. What do I need to know?

When it comes to working a public holiday, your award or agreement may already state whether you can do it if your employer agrees. For employees not covered by an award or enterprise agreement, you may still be able to work in exchange for a higher rate wage or another day off if your employer agrees.

The decision must be agreed on by both parties, and your employer should not exert pressure on you to substitute the existing public holiday.

How much you get paid for working on a public holiday will depend on the type of worker you are. Generally, employees should receive at least their base rate for hours worked on a public holiday. Some employees may receive extra pay or entitlements depending on any applicable award or agreement.

If your employer is closing the business for a public holiday, you will likely need to take the day off, and this would be considered a reasonable and lawful direction.

I want to take a public holiday. What do I need to know?

Public holidays fall under the National Employment Standards (NES), which state all employees have a right to be absent from work on a public holiday. Your employer can still request you to work on a public holiday if their request is reasonable, and you have the right to refuse if your refusal is reasonable. A reasonable request will depend on several factors. You can find out more here.

Full or part-time employees who ordinarily work on the day a public holiday falls should be paid their base pay rate for the hours they would have worked if they had not been away because of the public holiday. The base pay rate does not include incentives, bonuses, loading, overtime or penalty rates.

Your employer cannot change your roster to avoid public holiday entitlements. If a public holiday falls during a period of paid annual leave or sick leave, it must be paid as a public holiday.

Any adverse action, such as termination of employment or demotion, taken against an employee for exercising their right not to work is unlawful.