Changes to Casual and Part-Time Entitlements 2018*

Changes to Casual and Part-Time Entitlements 2018

From the first full pay in January 2018 Fair Work Commission have revised several awards in relation to overtime payments, minimum engagement periods and conversion from casual to permanent employment.

These changes are (some may already apply in the award):

  • Casual employees are now entitled to overtime rates once they work in excess of 38 hours.
  • Casual employees may be entitled to payment for minimum hours. E.g. Work 1 hour however, minimum payment is for 3 hours so they are paid for 3 hours work.
  • Casual employees that have been employed for longer than 12 months are entitled to become permanent.

It is important to always check the awards to determine if these changes are relevant as not all of the awards have been affected. Further details of these Awards that have been amended are outlined below.

It is important to always check the awards to determine if these changes are relevant as not all of the awards have been affected. Further details of these Awards that have been amended are outlined below.

 

Name of Award Overtime Paid Minimum Hours Condition Determining Overtime (OT)
Fast Food Industry Yes No Employee works:

  • More than 38 hr per week; or
  • Average 38 hr per week over roster period
  • More than 11 hrs on any day the excess is overtime
General Retails Industry Yes No Employee works:

  • More than 38 hrs per week; or
  • Average 38 hrs per week over a roster cycle
  • More than 9 hrs per day provided that one day per week casual worker may work 11 hours without attracting penalty rates
  • Outside the span of ordinary working hours
  • Penalty rates applied to the ord. hrly rate of pay, with the casual loading also to be applied to the ordinary rate of pay. Rates are not cumulative upon casual hrly rate of pay
Hair and Beauty Industry Yes No Employee works:

  • More than 38 hrs per week; or
  • Average 38 hrs over a roster cycle; or
  • More than 10.5 hrs on any day excess is overtime
Hospitality Industry (General) Yes No Employee works:

  • More than 38 hrs per week; or
  • Average 38 hours per week over a roster cycle; or
  • More than 12 hours on any day, excess is overtime
Passenger Vehicle Transportation No Yes School bus drivers transporting students to and from school can be rostered for one or two shifts per day. Each shift is minimum 2 hrs
Pastoral No Yes Minimum hours for dairy operators that are 18 years or younger, which are full-time secondary school students, is 2 hrs
Registered and Licenced Clubs Yes No Employee works:

  • More than 38 hrs per week; or
  • Average 38 hours per week over roster cycle; or
  • More than 12 hrs on any day is excess is overtime
  • May be entitled to meal allowance when working overtime.
Restaurant Industry Yes No Employee works:

  • more than 38 hr per week; or
  • Average 38 hr per week over roster period
  • More than 12 hrs or per shift on any day the excess is overtime
Wine Industry No Yes An employee working throughout pruning or harvesting work during unexpected wet weather has the minimum hours reduced from 4 to 2.

 

How is Overtime for Casuals Calculated?

The way overtime is calculated is dependent on the award. In some awards it includes casual loading on both normal hours and overtime hours; and in others, casual loading is only on normal hours and not on overtime.

Penalty rates may also be required if the award states this.

Example: General Retail Award

Overtime applies when an employee works:

  • More than 38 hrs per week; or
  • Average 38 hours per week over a roster cycle; or
  • More than 12 hrs on any day, excess is overtime

Award clause for payment of overtime is inclusive of casual loading:

29.2 (c) (iii) Hours worked by casual employees:
shall be paid at 175% of the ordinary hourly rate of pay for the first three hours and 225% of the ordinary hourly rate of pay thereafter (inclusive of the casual loading).

29.2 (e) The rate of overtime for casual employees on a Sunday is 225% of the ordinary hourly rate of pay, and on a public holiday is 275% of the ordinary hourly rate of pay (inclusive of the casual loading).

Penalty payments

29.4 (b) Saturday work

A casual employee must be paid an additional 10% for work performed on a Saturday between 7.00 am and 6.00 pm. Start with the base of $20.80 add 10% for the Saturday loading and 25% for the casual loading.

29.4 (c) (i) Sunday work – From 1 July 2017 to 30 June 2018
A penalty payment of an additional 95% loading will apply for all hours worked by a casual employee on a Sunday (inclusive of the casual loading).

Practical Example:

Stacy works in Retail (under the General Retail Award):

  • Base rate of pay $25.00 per hour
  • Casual Loading of 25%
  • Worked 45 hours this week, including 7 hours overtime
  • Overtime time and a half for first 2 hours on Tuesday
  • Overtime double time for 3 hrs on Tuesday
Example of Stacy’s Pay Hours Hourly Rate Total
Normal Hours 38 $25.00 $950.00
Casual Loading 25% 38 $6.25 $237.50
Overtime Time and a Half (Rate $12.25+$25.00 Base) 2 $37.50 $75.00
Overtime Double Time (Rate $25.00+$25.00 Base) 5 $50.00 $250.00
Casual Loading on Overtime 25% Time and a Half 2 $9.37 $18.74
Casual Loading 25% Double Time 5 $12.50 $62.50
Total Gross $1,593.74
Superannuation 9.5% Normal Hours + Casual Loading $112.81

 

*This areclicle is courtesy of the Institute of Certified Bookkeepers published in February 2018.

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