As from 1 January 2018
Casuals will now be entitled to Overtime pay!
It appears not all parts of the FWO website have been updated nor can we see the final Decision implementation documentation. Drafts are available and the decision states a start date of 1 January 2018.
Other changes include that casuals may actually have to become part time employees.
Different awards have different requirements.
In general if someone was previously a Casual then Overtime didnt apply, whereas now the FWCommission has decided that many casuals will be paid overtime rates.
Some of the awards:
In the Fast Food Award overtime must be paid for more than 38 hours per week or more than 11 hours on any day
In the Hair & Beauty Award overtime must be paid for more than 38 hours per week or more than 10.5 hours on any day
In the Hospitality Award, Restaurant Award & Registered Clubs Award overtime must be paid for more than 38 hours per week or more than 12 hours on any day
In the Retail Award overtime must be paid for more than 38 hours per week or outside of span of ordinary hours or more than 11 hours on one day of the week or 9 hours on any other day of the week
How much to pay
The FWC decision states the overtime penalty rates "...will be payable inclusive of the casual loading."
This has been applied in the General Retail Industry Award 2010 as follows:
(c) ........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).
So this means we pay the normal rate, then the overtime allowance ie 50% or 100% and then add 25% of the base rate (as the casual loading amount) ie casual loading is paid on the base rate and NOT the overtime hourly rate.
So a person working overtime would be paid as follows
Base Rate say $20 per hour
Overtime (50%) = $10 additional per hour
Casual Rate (25% of Base) = $5 per hour additional ie 25% of the $20 per hour base rate
Check the similar provisions in other awards to ensure they are appleid the same way, however based on the decision we believe it will be consistent. Employees will need to be advised. Employers will need to be advised.
Fairwork Information page on the FWO Website
FW Commission decision
WorkForce Guardian provide this Advice
Updated 27 December, 2017
21 December, 2017