How are employees compensated for working on statutory holidays?

Compensation for employees working on statutory holidays is typically structured around the principles of additional pay or the provision of a substitute day off. This approach aligns with labor laws and regulations aimed at recognizing the significance of statutory holidays and ensuring employees are justly compensated for their time and effort.

When employees work on these designated holidays, it is common for employers to offer them a premium rate of pay, often referred to as holiday pay. Alternatively, if the preference is not for immediate financial compensation, employees may have the option of taking an equivalent amount of time off at a later date, known as a substitute day. This flexibility caters to various employee needs and enhances overall job satisfaction.

The other options do not reflect standard practices regarding holiday compensation. For instance, mandatory overtime policies could be relevant in other contexts but are not directly tied to the statutory holiday pay requirements. Gift cards are more of a promotional or incentive method rather than a legal compensation structure. Similarly, increasing annual leave does not serve as direct compensation for the specific work done on a statutory holiday. Hence, the correct answer encompasses both the nature of compensation established by labor laws and the common practices in many workplaces.