Changes to Casual Overtime.

Changes to Casual Overtime | Fact sheet and FAQ A

Changes to Casual Overtime.

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Fact sheet and frequently asked questions.

Changes to Casual Overtime | Fact sheet and FAQ B

The information contained in this document is strictly confidential and may not be reproduced, distributed or published by any recipient for any purpose without the prior written consent of Employsure Pty Limited. The information is for background purposes only, does not purport to be full or complete and does not constitute advice. No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained in this document and no liability is accepted for the accuracy or completeness of any such information or opinions. To obtain advice on your specific situation, please speak to an employment relations consultant.

Contents

Page 1 - Fact SheetHow do I know if I am affected by these changes?

What is changing?

What does this mean for my business?

So, what do I need to do?

Page 3 - Frequently Asked QuestionsWhat is a casual employee?

What is overtime for a casual employee?

How do I know which payment method to use?

What if my award is not on the list?

Page 4 - List Of Awards That Are Changing

Changes to Casual Overtime | Fact sheet and FAQ 1

Payment of Casual Overtime Fact Sheet

Changes are coming to the way some casuals should be paid for overtime. These changes will apply to most Modern Awards. You need to check any awards

that apply to your business or your employees to make sure you are correctly paying your casual staff when they work overtime.

How do I know if I am affected by these changes?

You will be affected by these changes if you:

If you are covered by an Award listed on pages 4 and 5 of this fact sheet

Have any casual staff, and

Your casual staff work overtime

If the above applies to you, you could end up having to pay your casual staff more, less or the same for any overtime hours worked.


What is changing?

The Fair Work Commission has made changes to the awards listed on pages 4 and 5 of this fact sheet with regards to how casual employees should be paid when working overtime. The changes will take effect from the first full pay period, on or after 20 November 2020.

The Commission has reviewed most of the awards and has confirmed three different ways in which casuals can be paid, depending on the award. The Commission has also made changes to some awards as to which method applies, meaning that the way of calculating an overtime rate for casuals in your business may change.

In the examples below ordinary time or the permanent base rate is 100%, casual loading is 25% and overtime is at time and a half ie.150%:

1. The Substitution Method

Overtime is calculated on the permanent base rate and it excludes the casual loading ie base rate x overtime penalty – 100% x 150%

2. The Cumulative Method

The overtime entitlement and the casual loading are applied to the permanent base rate ie base rate x overtime penalty and casual loading – 100% x 175%

3. The Compounding Method

The overtime entitlement is calculated on the casual loaded rate of pay ie casual loaded rate x overtime penalty – 125% x 150%

What does this mean for my business?

The changes require business owners to review their award to see whether or not rates of pay for casual overtime have changed. Employsure can provide you with pay rate schedules to help you find the right pay.

So, what do I need to do?

You will need to check your award carefully to see which overtime pay calculation method applies to the casuals in your business, and know what the change is to the award, ie. overtime rate has increased, decreased or has not changed.

If there is a change, you will then need to let your casual employees know how they will be paid for overtime in future.

Frequently asked questions

What is a Casual Employee?

A casual employee does not have a firm commitment

in advance of ongoing employment and is employed

on an ad-hoc basis. This means the employee has no guaranteed

days or hours of work. A casual employee also does not get

benefits such as sick leave or annual leave, so they get paid

a higher rate, called ‘casual loading’, to compensate.

What is overtime for a casual employee?

This will depend on the award, but generally overtime kicks

in when a casual employee has worked more than 38 hours in a week or more than a certain

amount of hours in a day, or outside the daily spread of hours

listed in the applicable award.

How do I know which payment method to use?

Again, this will depend on the award that covers your

business and your employees. Employsure can help you

understand what payment method to use. Call us for free

initial advice.

What if my award is not on the list?

Continue to follow the method for payment for casual overtime

outlined in your award. Please call us for free initial advice if your award is not on the list.



List of Awards that are changing as of the first full pay period

on or after 20 November 2020.The casual overtime payrate for the Aged Care Award will also increase, but these changes will not become effective until the first full pay period on or after 01 March 2021.

Awards where the casual overtime rate of pay is increasing

• Aged Care Award (not until the first full pay period on or after 01 March 2021)

• Black Coal Mining Industry Award

• Broadcasting, Recorded Entertainment and Cinemas Award

• Business Equipment Award

• Concrete Products Award

• Contract Call Centres Award

• Electrical, Electronic and Communications Contracting Award

• Health Professionals and Support Services Award from substitution

• Labour Market Assistance Industry Award

• Marine Tourism and Charter Vessels Award

• Marine Towage Award

• Ports, Harbours and Enclosed Water Vessels Award

• Sugar Industry Award

• Stevedoring Industry Award

• Surveying Award

• Telecommunications Services Award

• Transport (Cash in Transit) Award

Awards where the casual overtime rate of pay is decreasing

• Aluminium Industry Award

• Ambulance and Patient Transport Industry Award

• Amusement, Events and Recreational Award

• Local Government Industry Award

• Passenger Vehicle Transportation Award


• Salt Industry Award

• Supported Employment Services Award

• Travelling Shows Award

• Water Industry Award

Awards where the casual overtime rate of pay will remain the same

• Aboriginal Community Controlled Health Services Award

• Airline Operations - Ground Staff Award

• Animal Care and Veterinary Services Award

• Architects Award

• Asphalt Industry Award

• Banking, Finance and Insurance Award

• Building and Construction General On-site Award

• Car Parking Award

• Cement, Lime and Quarrying Award

• Cemetery Industry Award

• Children’s Services Award 2010

• Cleaning Servcies Award

• Clerks - Private Sector Award

• Coal Export Terminals Award

• Commercial Sales Award

• Educational Services (Post-Secondary Education) Award

• Educational Services (Schools) General Staff Award

• Educational Services (Teachers) Award

• Electrical Power Industry Award

• Fast Food Indstry Award

• Fitness Industry Award

• Food, Beverage and Tobacco Manufacturing Award

• Funeral Industry Award

• Gardening and Landscaping Services Award

• Gas Industry Award

• General Retail Industry Award


• Graphic Arts, Printing and Publishing Award

• Hair and Beauty Industry Award

• Horse and Greyhound Training Award

• Hydrocarbons Industry (Upstream) Award

• Joinery and Building Trades Award

• Legal Services Award

• Live Performance Award

• Mannequins and Models Award

• Manufacturing and Associated Industries and Occupations Award

• Market and Social Research Award

• Meat Industry Award

• Medical Practitioners Award

• Mining Industry Award

• Miscellaneous Award

• Mobile Crane Hiring Award

• Nursery Award

• Nurses Award

• Oil Refining and Manufacturing Award

• Pastoral Award

• Pest Control Industry Award

• Pharmaceutical Industry Award

• Pharmacy Industry Award

• Plumbing and Fire Sprinklers Award

• Port Authorities Award

• Poultry Processing Award

• Premixed Concrete Award

• Professional Diving Industry (Industrial) Award

• Racing Clubs Events Award

• Racing Industry Ground Maintenance Award

• Rail Industry Award

• Real Estate Industry Award

• Seafood Processing Award


• Security Services Award

• Silviculture Award

• Sporting Organisations Award

• State Government Agencies Award

• Storage Services and Wholesale Award

• Textile, Clothing, Footwear and Associated Industry Award

• Vehicle Manufacturing, Repair, Services and Retail Award

• Waste Management Award

• Wine Industry Award

• Wool Storage, Sampling and Testing Award


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Why Employsure?At Employsure, we believe all Australian employers, no matter the size, deserve access to comprehensive, quality, honest advice and support that is scalable to the needs of their business.

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Changes to Casual Overtime.

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