A new public holiday to honour Queen Elizabeth II is a mixed bag for small businesses facing penalty rates and contracts

A surprise public holiday to honour the life of Queen Elizabeth II could drive business to Australia’s service and hospitality sectors, but industry leaders fear for small businesses now unexpectedly balancing commitments to customers against the cost of penalty rate entitlements.

Prime Minister Anthony Albanese yesterday declared September 22 will mark a national day of mourning to recognise the death of Queen Elizabeth II, who died last week aged 96.

Albanese says he asked premiers and chief ministers of each state and territory to make the day a public holiday, allowing Australians to “take time to pause and reflect on Her Majesty’s extraordinary life of service”.

The occasion will allow Australians to reflect on the life and times of a “remarkable woman”, Council of Small Business Organisations Australia (COSBOA) CEO Alexi Boyd says.

An extra public holiday may also benefit local business, she added.

“For some, it’s a great opportunity, which will increase foot traffic and potentially give them a boost in sales for the day,” Boyd told SmartCompany.

However, businesses which operate on an appointment basis — including allied health professionals, hairdressers, beauty therapists — now have difficult decisions ahead of them, Boyd notes.

Paying staff penalty rates to cover the public holiday means “they could potentially have to run at a loss, and moving those appointments at such short notice is really problematic”, she said.

The cumulative cost of public holiday rates is significant: a 2015 PwC report found Victoria’s move to declare Easter Sunday and the Friday before the AFL Grand Final as public holidays would increase wage payments by up to $286 million per year in the state alone.

And beyond penalty rates, Boyd says some sectors may be hamstrung by commitments they made months in advance.

“We’re also hearing from the events industry, for example,” she added.

“They’ve got fixed contracts, they’ve got fixed ticket prices. What do they do with less than two weeks notice? And they may experience losses as a result as well.”

Boyd called on customers to respect the decisions made by small businesses ahead of the day, given the way many owners and proprietors have already faced rising costs and a persistent labour shortage.

“I think a lot of small businesses have got wonderful loyal customers who really understand, and know that as well as small businesses supporting their community, that their community supports them,” she said.

Business groups agree it’s appropriate to honour Queen Elizabeth II

Paul Zahra, CEO of the Australian Retailers Association, agreed it was appropriate to hold a public holiday given the fact many business owners themselves would like to mourn the loss of Australia’s former head of state.

“Nevertheless, this event will create some complications for businesses with store closures and staff scheduling challenges, with many rosters set up weeks in advance,” he said in a statement.

“There will also be a small but unexpected loss of trade, and additional staffing costs, which may impact cashflows for small businesses.

“Store opening and closing directions are typically established by the states and territories, and we look forward to their direction today so retailers can plan accordingly.”

Amid concerns over how businesses will adapt to the impending public holiday, the Australian Chamber of Commerce and Industry, representing larger employers, also recognised the importance of granting workers the day off.

“These are extraordinary and exceptional circumstances,” a spokesperson told SmartCompany.

“It’s a dignified and appropriate mark of respect to commemorate the 70-year reign of Queen Elizabeth II.”