The Australian Industry Group today lodged a submission in support of its application to Fair Work Australia (FWA) to clarify public holiday penalties over the Christmas/ New Year period and to avoid unnecessary cost and confusion.

Ai Group Chief Executive Heather Ridout said today Ai Group's application will be heard by a Full Bench of FWA at 9.15am tomorrow Wednesday 24 November in Melbourne.

"Our application aims to head off public holiday chaos with six States adopting five different approaches to proclaiming Christmas / New Year public holidays this year.

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

With Christmas Day, Boxing Day and New Year's Day all falling on a weekend this year, some States have proclaimed "substitute days", some have proclaimed "additional days" and some have proclaimed a mixture of both, she said.

"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 is likely to impact on many industries which operate over the holiday period.

"The variation preserves the longstanding arrangements which have applied in the past under federal awards. The introduction of modern awards and the National Employment Standards from 1 January this year should not impose additional public holiday penalty costs upon employers.

"It has been reported that over recent days the ACTU has written to a number of State and Territory Governments seeking the proclamation of even more public holidays over the Christmas / New Year period. The ACTU's plan would lead to even more double-dipping," Mrs Ridout said.