Fair work to deal with Christmas pay

It comes despite the New South Wales government declaring them public holidays.

Chief Executive Australian Industry Group Ms Heather Ridout said employers are facing public holiday chaos with six states adopting five different approaches to proclaiming Christmas and New Year public holidays.

"The way that public holidays are proclaimed is vitally important, given that it impacts upon the penalty rates payable for days worked," she said.

With Christmas Day, Boxing Day and New Years Day all falling on a weekend this year each state have adopted a different method of calculating rates.

"Some states have proclaimed 'substitute days', some have proclaimed 'additional days' and some have proclaimed a mixture of both," Ms Ridout said.

The Australian Industry group applied to Fair Work Australia (FWA) to take action which will clarify the situation and provide uniformity across the country.

"Ai Group's application relates to the Manufacturing Modern Award but the relevant clause in that award (clause 44.2) is common in other awards, and the Tribunal's decision will impact on many industries which operate over the holiday period," she added.

In a statement released on the Ai website, the group sought a clarified clause which would provide that:

* Where Christmas Day falls on a Saturday or Sunday, public holiday penalty rates are payable for any work performed on 27 December and public holiday penalty rates are not payable on 25 December;

* Where Boxing Day falls on a Saturday or Sunday, public holiday penalty rates are payable for any work performed on 28 December and public holiday penalty rates are not payable on 26 December;

* Where New Year's Day or Australia Day fall on a Saturday or Sunday, public holiday penalty rates are payable for any work performed on the following Monday and public holiday penalty rates are not payable on the original day.

It is the first time employers have dealt with the Christmas season under the federal government's full Fair Work system.