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Are You Compliant with Award Entitlements?


It’s easy to miss changes to legislation so here’s a reminder to make sure you’re up to date and compliant.

If you employ casual or part time staff, be sure that you’re paying them in accordance with award rates and minimum shift entitlements introduced by the Fair Work Commission as of 1 January 2018.

The decision introduces overtime rates for casual employees in many awards and changes how part-time hours can be worked in others.

Who do the changes affect?

The changes are different for each award, which means whether or not they affect you will depend on your business and the awards covering your staff.

For example, in the hair and beauty sector, casual employees are now entitled to overtime when they work more than 38 hours per week (or an average of 38 hours per week over a roster cycle); or more than 10.5 hours per day.

In the hospitality sector, the entitlements for both part-time employees and casual employees have changed.

Part-time employees can be engaged for a minimum of 8 hours and less/fewer than 38 ordinary hours per week over a roster cycle. The employer and employee must agree on a minimum number of hours to be worked each week and the times the employee is available to work.

Part-time employees can be rostered for additional hours during their availability period without the need to pay them overtime. However, a part-time employee who regularly works additional hours for 12 months may ask to increase their guaranteed hours. As an employer, you can only refuse this request if you can show reasonable business grounds.

You need to pay overtime to casuals when they work more than 38 hours per week, or an average of 38 hours per week over a roster cycle (which may not exceed four weeks), or more than 12 hours per day.

Because the changes are different for each award, it is important to do your research: read more here.

How Can You Keep Up To Date and Compliant?

In Australia, modern awards came into effect on 1 January 2010. The awards outline all the terms and conditions of employment covered by the national workplace relations system and are applicable to most employers and employees.

The awards are not applicable to businesses covered by a registered agreement, however, the base rates of pay in the modern award still apply – meaning that you cannot pay an individual less than the base rate.

Higher paid employees and managers may not be covered by an industry award, even if one applies to your business.

Awards are industry or occupation-based, and all employers and employees are responsible for keeping up-to-date with them as they change.

Ayers has been working with Australian businesses to manage their payroll and back office administration for over 20 years. With experience and expertise we can tailor a solution for your business that will perfectly take care of every aspect of your payroll, ensuring your business is always up to date and compliant with relevant change. Talk to an Ayers consultant today.