From 20 November 2020, many casuals employed under modern awards will see their overtime calculated differently.

As part of the 4 yearly review into the awards, the Fair Work Commission needed to clarify if the overtime calculation was to be made on top of the casual loading, or excluding the casual loading.

Almost 100 awards were impacted by the clarification of overtime calculations for casuals. You can see the full list here.

It is important that employers:

  • Clearly understand any new calculations that are required for casual overtime rates,
  • Implement these changes within their payroll system,
  • Notify employees of these changes, and
  • Provide access to the updated award for employees.

These changes may also apply to some enterprise agreements, depending on how the agreement does or does not work in conjunction with the modern award.

For anyone paying OVER the minimum pay rate for a casual position, the higher rate is required to be used for the calculation of overtime payments.

Not all awards have seen changes to the calculations, so it’s best to refer to the applicable award and check that your business is calculating overtime correctly.

 

To understand how these changes apply to your business, contact our Workplace Partners for specific details relevant to your award.

 

*This is general information only and doesn’t take your specific business requirements into account.