Labour Day is a public holiday that falls on the fourth Monday in October and commemorates the eight-hour working day.

This year, it's on 27 October in New Zealand.

Unlike Christmas, Easter and Anzac Day, shops do not have to close, but labour laws state people who work must be compensated.

Large chain stores generally open on Labour Day in New Zealand, with some - such as The Warehouse and Noel Leeming - opting to hold Labour weekend sales.

Supermarkets generally also open, although their hours may change, so it's worth checking with the individual store whether this is the case.

Restaurants and cafes often open on Labour Day, but some will require you to pay a surcharge.

Keep in mind that many restaurants that open five days a week often close on Monday anyway, whether it's Labour Day or not.

It's definitely worth either phoning or checking the establishment's social media site to see whether the place you intend dining is open.

Government departments, such as Inland Revenue and Work and Income, close on Labour Day.

Work and Income says that will mean anyone usually paid on Tuesday, 28 October, will be paid on Saturday, 25 October.

Surcharges

Employees are paid time-and-a-half and entitled to a paid day off, if a public holiday falls on a normal working day for them.

To recoup this increased cost, businesses like restaurants, bars and cafes are able to charge customers a surcharge.

Consumer NZ says a business can charge any amount as a surcharge, as long as it informs customers of the surcharge and explains why it has been applied.

This can be done with the display of signs detailing the surcharge, a message on the business's website, or by verbally letting the customer know at the time of purchase or before they order.

If customers believe they have been misled about a surcharge, they can complain to the Commerce Commission.

The typical surcharge is 15 percent, the Restaurant Association says.

Why do we have Labour Day?

Labour Day is commemorated in many countries on a range of dates.

It celebrates the idea of an eight-hour working day and, in New Zealand, it was championed by Wellington carpenter Samuel Parnell.

In 1840, Parnell refused to work for more than eight hours each day and, because there were not many people who had his carpentry skills in New Zealand at the time, his employers had to agree to him working those hours, according to Christchurch City Library's website.

On 28 October 1890, he led a Labour Day parade of 1500 people to commemorate his establishment of the eight-hour working day and to encourage other industries to do the same.

Although the government was reluctant to enforce the eight-hour working day across the board, it did pass the Labour Day Act 1899 to establish a public holiday on the second Wednesday of October, teara.govt.nz said.

From 1910, Labour Day was observed on the fourth Monday in October.