This article provides guidelines about when to use the different work types and tags that are included as part of the pre-built Clerks Private Sector award package. For further information about this industry award, refer to Clerks Private Sector Award 2020.
Key updates
Select the current financial year tab to see award updates for the 2024/25 financial year, while all previous updates before this time you can find in the historical financial years tab.
29th
We have updated the award to provide greater alignment between the platform’s pay condition rule sets and the award’s clauses.
Here’s the summary of the key changes:
We’ve introduced new rules to all rule sets for the following allowances:
- Motorcycle Allowance as per clause 19.6(a)(ii)
- Overtime Meal Allowances as per clause 19.5
- LAFHA - Travel Time as per clause 19.7(c)
We've added some rules specific to day and shift worker rule sets. Please see below some of the additional rules:
Day workers
- Period Overtime as per clause 13.2
- Minimum Cumulative Overtime as per clause 21.3
- Ordinary Hours (Sunday) as per clause 24.3
Shift workers
- Period Overtime as per clause 26.1
- Penalty shift work if the shift starts at 11:00pm on a Saturday, Sunday or Public holiday as per clause 31.2
Additionally, we've revised some of the existing rules. Please see below some of the updated rules:
- Motor Car Allowance as per clause 19.6
- Minimum Shift Engagement for Part-Time and Casual Employees
- Rest Period After Working Overtime
For detailed information on the changes, please refer to our guide here.
1st
We have updated the award to reflect the Fair Work Commission's National Minimum Wage increase detailed in the Annual Wage Review 2023-24 decision and also includes updates to expense-related allowances. You can find more information on the Determinations here and here.
These changes come into effect from the first full pay period on or after the 1st July 2024. Please install these updates after you have finalised your last pay run before the first full pay period beginning on or after the 1st July 2024.
We have also updated the "Community Service Leave Taken" pay category, where it accrues leave. The payment classification has also been updated in line with the ATO specification categories.
All rule sets has been updated to include a rule for Paid Family Domestic Violence Leave.
26th
We updated the Permanent Day Workers rule set to exclude the work type "Return to Duty" and "First shift of the day" condition from the Minimum break between shift rules as per clause 22.
We also updated the Shiftworkers rule set, we have removed the Return to Duty rule (clause 21.5) and introduced a new rule called "Rest period after working overtime" for Permanent employees. In line with the change a new pay category "Permanent - Less than 8 hour break between shifts" has been created as per clause 30.5.
Furthermore, we have created a new work type called "Rest Period - No Loss of Pay" based on clauses 22.4(c) and 30.5(c).
1st
From 1 August, all employees are entitled to 10 days of paid family and domestic violence leave each year. The (Unpaid) Family and Domestic Violence Leave configuration settings under awards have been updated - the leave category is disabled from award leave allowance templates, and the work type is not enabled automatically for all employees. Please ensure that employees no longer use the unpaid leave category or work type.
1st
We have updated the award to reflect the Fair Work Commission’s National Minimum Wage increase detailed in the Annual Wage Review 2022-23 decision and also includes updates to expense-related allowances. You can find information on the Determinations here and here.
These changes come into effect from the first full pay period on or after the 1st July 2023. Please install these updates after you have finalised your last pay run before the first full pay period beginning on or after the 1st July 2023. We have also updated the Community Service Leave category to make sure it pays at base rate.
The pay condition rule set Clerks (Private Sector) Permanent Shiftworkers and Clerks (Private Sector) Permanent Day Workers have been updated to reflect a new enhancement which will calculate the higher of annual leave loading or penalties based on the entire leave period, aligning with Fair Works calculation.
The Award has been updated to reflect the Fair Work Commission’s National Minimum Wage increase of detailed in the Annual Wage Review 2021-22 decision. This also includes updates to expense-related allowances. Information on the determinations can be found here and here. These changes come into effect from the first full pay period on or after 1 July 2022. Please install these updates AFTER you have finalised your last pay run prior to the first full pay period commencing on or after 1 July 2022.
The Clerks (Private Sector) Permanent Dayworkers and the Clerks (Private Sector) Casual Dayworkers rulesets have been updated to remove the limit of one meal break per shift if an employee works more than 10 hours (Clause 15.3).
The Clerks (Private Sector) Permanent Shiftworkers and the Clerks (Private Sector) Casual Shiftworkers rulesets have been updated to ensure the correct overtime rate applies when an employee works in excess of the ordinary daily hours on a Saturday, Sunday or public holiday that is not an ordinary working day (Clause 28.1, Table 6). A new work type, Work Outside Ordinary Days, has been created to use in this scenario. Two new pay categories have been created, Permanent - Overtime Weekends & PH Outside Normal Working Period (Shiftworker) and Casual - Overtime Weekends & PH Outside Normal Working Period (Shiftworker), to apply overtime in this scenario.
The Clerks (Private Sector) Permanent Shiftworkers and the Clerks (Private Sector) Casual Shiftworkers rulesets have also been updated to ensure the application the 4 hour minimum engagement for overtime worked on Saturday, Sunday or a public holiday, where the employee would not have been ordinarily rostered to work that day and the work is not continuous with the start or finish of the employee's ordinary shift (Clause 28.3).
The Award has been updated to reflect the Fair Work Commission’s National Minimum Wage increase of 2.5% detailed in the Annual Wage Review 2020-21 decision. This also includes updates to expense-related
allowances. Information on the Determinations can be found here and here.
These changes come into effect from the first full pay period on or after 1 July 2021. Please install these updates AFTER you have finalised your last pay run prior to the first full pay period commencing on or after 1 July 2021.
Updates have also been made to the Leave Category Family & Domestic Violence Leave, so that the balance is displayed in days instead of hours in line with the National Employment Standards.
Once the update is installed, all employee’s FDV leave balances will be displayed in days not hours. This will mean that an employee’s balance may now show as 38 days. In order to correct the balance please see How to Fix Family & Domestic Violence Leave Balance Data.
This update is to ensure that any new installs of this award conducted since 1 July are now captured with the SG increase from 9.5% to 10% for all pay categories. If you have installed this award between 1 July 2021 to 8 July 2021 for the first time, please ensure you select "NO" to preserve custom pay categories. If you were using this award prior to 1 July 2021, then you do not need to select "NO." Further information can be found in Incorrect SG rate used in pay runs article here.
The award pay rate templates have been updated to ensure that the legislated superannuation guarantee (SG) rate will increase automatically from 9.5% to 10% effective from 1 July 2021. Please ensure you install this update prior to 1 July 2021 for this change to take effect.
What does this mean? Any pay run with a date paid on or from 1 July 2021 will automatically calculate SG at 10% of OTE. Additionally, on the 1st of July, we will update references to 9.5% on all applicable screens in KeyPay. For more information, including any exclusions, check out this article from the ATO.
The pay condition rule set for Permanent Day Workers has been updated to ensure employees are paid at a rate of 200% of the minimum rate when they have had less than a 10 hour break between shifts.
The Award, as part of Group 2 Awards, has been updated to reflect the Fair Work Commission’s National Minimum Wage increase of 1.75% detailed in the Annual Wage Review 2019-20 decision. This also includes updates to expense-related allowances. Information on the Determinations can be found here and here.
These changes come into effect from the first full pay period on or after 1 November 2020. Please install these updates AFTER you have finalised your last pay run prior to the first full pay period commencing on or after 1 November 2020.
The Leave Category Unpaid Pandemic Leave has been corrected to two (2) standard Weeks per year.
The award has been updated to reflect the High Court's decision on the accrual of personal/carer's leave which overturns the decision made by the Full Federal Court of Australia, with personal/carer's leave being calculated on working days not hours. Information on the decision can be found here. As such, we have removed the Personal/Carer's (10 days) Leave Allowance Templates and updated associated Employment Agreements. Please note, this update will not remove any of the above from a business where the award was already installed prior to 25 August 2020. However, any new award installs from 25 August 2020 will not display personal/carer's (10 days) leave details.
For further information on migrating from daily personal/carers leave accruals to hourly please refer here.
The award pay rate templates have been updated to reflect the Australian Taxation Office's decision to increase the cents per kilometre rate for work-related car expense deductions to 72 cents per kilometre. The new rate applies from the first paid date in the 2020-21 financial year.
The pay conditions rule sets for Clerks (Private Sector) Permanent Day Workers, Clerks (Private Sector) Casual Day Workers, Clerks (Private Sector) Permanent Shiftworkers, and Clerks (Private Sector) Casual Shiftworkers have been updated to ensure that when a leave work type is taken, the penalty and overtime rates are not calculated except for the purposes of annual leave taken when calculating the higher of the penalties or loading. The leave taken work type hours will also be included in the period overtime rule calculation.
The award has been updated to reflect the changes made as part of Fair Work's determination around Clause 17 - Annualised Wage Arrangements. A new employment agreement for Annualised Wage employees has been created which can be assigned to an employee who is paid under the provisions of clause 17. Further information on the employee setup can be found here.
The award pay conditions rule set for Permanent Day Workers has been amended to ensure overtime is paid on a Sunday.
The award has been updated to reflect changes made as part of the Fair Work Decision around flexibility during coronavirus. The new schedule allows employees to take up to two (2) weeks unpaid pandemic leave. A new pay category (Unpaid Pandemic Leave Taken), leave category and work type (Unpaid Pandemic Leave) have been created. Also, the rule sets have been updated, where necessary, to include/exclude the work type and leave category to some pay conditions. Further, the Leave Allowance Templates have been updated to ensure this new leave category is enabled and is now accessible for employees to take this leave when required.
The award has been updated to reflect changes made as part of the Fair Work Decision around flexibility during coronavirus. The determination for the new Schedule I in the modern award allows employees to work from home with an extended span of ordinary hours (6:00am – 11:00pm), which a new rules has been created for. Also, a new work type and tag called Working from Home has been created, to be applied for these working conditions.
A new rule has been created for employees who have agreed to work from home, including part-time and casual employees, where the minimum hours have been reduced from three (3) hours to two (2) hours per shift.
Further, employers can temporarily reduce permanent employees’ hours during this coronavirus period. A new work type has been created - COVID-19 Not Worked, which is to be used for ordinary hours not worked, enabling employees to still accumulate their leave entitlements at their ordinary hours, however, they will not be paid for those hours.
Under this new schedule, employees can take up to twice as much annual leave at a proportionally reduced rate if their employer agrees. The employee's pay rate and leave balance will need to be manually adjusted to half in each pay run for the period of leave.
Due to recent changes to the interpretation of personal/carer's leave accrual under the National Employment Standards, updates have been made to the setup of the Award. Further information can be found here.
A new Leave Category called Personal/Carer's (10 days) Leave has been created. Also, new Leave Allowance Templates (LATs) have been created specific to 10 days accrual per year for each state and the LATs have been attached to the current Employment Agreements for selection options for an employee's LAT in their Employee Default Pay Run screen. Any rules impacted by Personal/Carer's Leave have also been updated with the new leave category.
Instructions on converting the accruals to the 10 day method can be found here.
The Award has been updated to reflect the Fair Work Commission’s National Minimum Wage increase of 3% from its Annual Wage Review 2018-19 decision. This also includes updates to expense-related allowances. Information on the Determinations can be found here and here.
These changes come into effect from the first full pay period on or after 1 July 2019. Please install these updates AFTER you have finalised your last pay run prior to the first full pay period commencing on or after 1 July 2019.
The setup of the Payroll Tax Exempt field in Payroll Settings>Pay Categories was replicating the PAYG Exempt field rather than creating a unique identity; when installed into the business settings. An audit has been carried out across the system and the issue has now been resolved with this update.
The award has been updated to reflect changes made as part of the Fair Work Decision 4 year review of modern awards. The determination for the new clause in the modern award allowing employees to take unpaid leave to deal with family and domestic violence can be found here. Family and Domestic Violence leave applies from the first full pay period on or after 1 August 2018. Further information can be found at Fair Work.
Employees, including part-time and casual employees, are entitled to 5 days of unpaid family and domestic violence leave each year of their employment. The 5 days renew every 12 months of their employment, but does not accumulate if the leave is not used.
A new leave category has been created - “Family and Domestic Violence Leave” and a new Work Type - “Family and Domestic Violence Leave taken”. The Leave Allowance Templates and any impacted rule conditions have also been updated.
The Award has been updated to reflect the Fair Work Commission’s national minimum wage increase of 3.5% from its Annual Wage Review 2017-18 decision. This also includes updates to expense-related allowances.
These changes come into effect from the first full pay period on or after 1 July 2018. Please install these updates AFTER you have finalised your last pay run prior to the first full pay period commencing on or after 1 July 2018.
Additionally, the following changes have been made as part of this update:
- New laundry allowance pay categories and rule conditions were created to reflect the ATO threshold maximum limits for claiming of laundry (not dry cleaning) for deductible clothing under the Award. Further information can be found in the “Cleaning of Work Clothing” section of this ATO article.
- The Payment Summary Classification settings for Allowance based pay categories have been updated as per STP requirements.
- We have created a new rule - 11.6 Apply Overtime - Over Advanced Standard Hours - Part-Time. This rule reflects the following provisions of clause 11.3:
- the hours worked each day;
- which days of the week the employee will work;
- the actual starting and finishing times of each day.
Previously we could only assess the number of hours worked per week for overtime purposes using the existing Apply Overtime - Over Standard Hours - Part Time rule. Now, however, we can assess the Advanced Standard Work Hours as set up within the employee's Pay Run Defaults screen.
For example, if an employee's Advanced Standard Work Hours were as follows:
The rule will assess hours as follows:
- Any time worked on Wednesday, Thursday and Saturday will be deemed overtime;
- Any time worked before the start times on Monday, Tuesday, Friday and Sunday will be deemed overtime; and
- Any time worked after the end times on Monday, Tuesday, Friday and Sunday will be deemed overtime.
N.B:
(a) This rule only works where Advanced Standard Work Hours have been set up using start and finish times, NOT hours only;
(b) If no Advanced Standard Work Hours have been set up for a part-time employee, then all hours will be deemed overtime.
- Fix any auto-meal break rules so that they do not apply to leave requests
- Updated allowance pay categories configuration. e.g. changed payment summary classifications.
- Created kilometre allowance pay categories - above and below ATO limits.
An update is available which amends the following:
- Ensures that time worked between midnight and 7am on a Saturday is treated as overtime
- Creates new linked pay categories to deal with "work during a meal break". This had previously been applied as rate multipliers in the rule set. This is in line with Fair Work guidance received on the application of the "work during a meal break" penalty.
An update is available which now allows us to consolidate both the progression of pay rates based on both date of birth and anniversary date within the same Employment Agreement. As an end user, this means that once the employment agreement for a level of the award is chosen, it will not need to be changed while the employee remains on that level. The rate of pay will automatically update as needed if the employee has a birthday or accrues another year of service (and the award requires an increased rate).
After applying this update, it will be important to follow these steps:
1. Review your employee list and identify employees who are currently assigned as a Level 1 or Level 2 employee (either day worker or shift worker)
2. Go to Employee > Pay run defaults and reassign them a new Employment Agreement. As an example, if the employment agreement was previously called "Day worker Level 1 Yr1" will now simply be called "Day worker Level 1"
The award will now look at both the employees age and the length of their service (with reference to their anniversary date) and automatically update their rate of pay as they progress.
Installing and Configuring the Pre-Built Award Package
For details on installing and configuring this Pre-built Award Template, please review the detailed help article.
While we make every effort to provide a high-quality service, Employment Hero does not accept responsibility for, guarantee or warrant the accuracy, completeness or up-to-date nature of the service.
Before relying on the information, users should carefully evaluate its accuracy, currency, completeness and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.
The award default Rule Set Period is set to Weekly that ends every Sunday. If you follow a different work pattern or roster period, you can review and set the rule-set period date that applies to your organisation.
Conditions of pay
Clause | Conditions | |
---|---|---|
Ordinary hours or work. | 13.3 |
Day workers
|
Overtime. |
21.4
21.3
28.1
|
Day workers
An employee is entitled to be paid overtime when the total overtime an employee has worked in one week reaches a minimum of half an hour
Shift workers
|
Maximum hours per day. |
13.7, 21.1(b), 26.2 |
10 hours per day |
Maximum hours over a period. |
13.2(a), 26.1(a),
21.1(e)
|
An average of 38 hours per week over a 4 week period Part-time employees (day workers):
|
Time off instead of payment for overtime (TIL). |
23.4, 29.4 |
The same as the number of overtime hours worked (1:1 accrual) |
Annualised Wage Arrangements | 18 |
An employer may pay a full-time employee an annualised wage. |
Clause | Conditions | |
---|---|---|
Public Holidays. |
24.4(a)
31.1
37.1 |
Day workers
Shift workers
Public Holiday not worked: paid at the base rate for permanent employees |
Shiftwork. |
25.1
31.2(a)
31.2(b) |
An employee who starts an ordinary shift between 11.00 pm and midnight on a Sunday or public holiday that extends into the next day that is not a public holiday is not entitled to the Sunday or public holiday penalty rate for the time worked on that Sunday or public holiday. An employee who starts an ordinary shift between 11.00 pm and midnight on the day before a Sunday or public holiday that extends into that Sunday or public holiday is entitled to the Sunday or public holiday penalty rate for the time worked on that day. |
Weekends. |
24.2 24.3
31.1 |
Day workers
Shift workers
|
Clause | Conditions | |
---|---|---|
Auto meal breaks. |
15.3 |
Day workers
|
No meal break. |
15.4 |
Paid 200% of the minimum hourly rate from when the meal break would have commenced until a meal break is allowed. |
Minimum shift engagement. |
10.5 11.4
21.4(b)
21.4(c)
21.5 24.3(c) 24.4(d)
28.3
|
Part-time: 3 consecutive hours on any shift Casual: 3 hours on each engagement
Day workers
Shift workers
|
Rest period after working overtime. |
22.4(a)
22.4(c)
30.5(a)
30.5(c)
|
Day workers
Shift workers
|
Higher duties. |
19.3 |
The employer must pay an employee performing duties of a higher classification for more than one day at least the minimum rate applicable to the higher level under this award. |
Make up time |
13.8 |
Day workers
Shift workers
|
Return to duty |
21.5 |
Day workers
|
Annual leave loading |
32.3 |
The higher of earnings from evaluated shift or ordinary hours + loading paid |
Additional paid annual leave. |
32.2 |
An additional 1 week of annual leave/year is entitled to seven-day shift workers. |
Special notes
- Categories (work types, tags, pay categories) that have been marked with an (*asterisk) are no longer used in rules. It still remains visible in the platform for auditing/reporting purposes.
- Shift workers are entitled to a paid meal break in accordance with Clause 27.2. Employees are not required to log in or out during this paid meal break.
- The clauses listed in the table below were not included in the award. If you need any of these clauses, creating or customising the award is necessary.
Clause no. | Clause Name | Details |
---|---|---|
15.3 | Meal break |
Need to customise rules
|
13.4 | Ordinary hours of work (employees other than shift workers) |
Need to customise rules
|
25.2 | Application of Part |
Need to customise rules
|
16.5 | Supported wage system |
Need to create Pay Rate Templates and Employment Agreements
|
16.6 | National training wage |
Need to create Pay Rate Templates and Employment Agreements
|
37.3(a)
37.3(b) |
Substitution of public holidays by agreement |
Need to customise rules: |
Work types
Work types are a description of the kind of shift you are working, and you select them when you record a timesheet. The following is a list of work types employees can select on their timesheet, and the meaning of each item.
Annual Leave | Choose this work type when annual leave is taken. |
Compassionate Leave | Choose this work type when compassionate leave is taken. |
LAFHA - meals & accommodation | Choose this work type to cover all reasonable expenses for meals and accommodation. |
LAFHA - travel fares | Choose this work type to cover all fares to and from the temporary workplace. |
LAFHA - travel time | Choose this work type to pay an employee at the minimum hourly rate for all time spent travelling between the employee’s usual place of employment and the temporary location - up to 8 hours in a 24 hour period. |
Long Service Leave | Choose this work type when long service leave is taken. |
Make-up Time | Choose this work type when a day worker takes time off during ordinary hours and works those hours at a later time during the spread of ordinary hours. |
Motor Car Allowance | Choose this work type to record the number of kilometres an employee has travelled using their own vehicle in the performance of their duties. |
Motorcycle Allowance | Choose this work type to record the number of kilometres an employee has travelled using their own motorcycle in the performance of their duties. |
No Meal Break | Choose this work type when an employee does not have a meal break and therefore the shift does not require an automatic meal break deduction. |
No minimum shift engagement | Choose this work type when an employee does not require minimum shift payment. |
No rest period after overtime | Choose this work type when an employee resumes work without having the 10 consecutive hours rest period following overtime. |
Overtime Meal | Choose this work type when an employee is required to work more than 1.5 hours of overtime after their ordinary end time without being provided 24 hours’ prior notice. |
Paid Community Service Leave | Choose this work type when community service leave is taken. |
Paid Family and Domestic Violence Leave | Choose this work type when paid family and domestic violence leave is taken. |
Personal/Carer's Leave | Choose this work type when personal and/or carer's leave is taken. |
Public Holiday not Worked | Choose this work type where an employee is not required to work on a shift falling on a gazetted public holiday that the employee would have otherwise worked had it not been a public holiday. |
Rest Period - No loss of pay | Choose this work type when an employee is entitled to be absent for 8/10 consecutive hours with no loss of pay for ordinary hours of work time which occur during this absence |
Return to Duty | Choose this work type when an employee is required to return to duty after that day's usual finishing hour of work. |
Sunday as ordinary hours | Choose this work type when a day worker employee is directed to work ordinary hours on a Sunday. |
TIL of Overtime | Choose this work type when the employee elects to accrue time in lieu rather than be paid overtime for a shift. |
Time in Lieu Taken | Choose this work type when time in lieu is taken. |
Unpaid Leave | Choose this work type when an unpaid leave is taken. |
Work outside ordinary hours | Choose this work type when a shift worker works on a Saturday, Sunday or public holiday that is not an ordinary working day (Per Clause 28.1, Table 6). |
Shift conditions
Shift Conditions are further details you can add to a shift where more than one condition applies to your shift. Shift conditions are selected when you edit a timesheet record, or when clocking on using the ClockMeIn Time and Attendance or Swag apps. The following is a list of Shift Conditions employees can select on their timesheet and the meaning of each item.
No Meal Break | Select this shift condition when an employee does not have a meal break and therefore the shift does not require an automatic meal break deduction. |
No minimum shift engagement | Select this shift condition when an employee does not require minimum shift payment. |
Overtime Meal | Select this shift condition when an employee is required to work more than 1.5 hours of overtime after their ordinary end time without being provided 24 hours’ prior notice. |
Tags
Employee Tags are specific conditions typically related to the employee’s agreement. These are often conditions negotiated and agreed between the employer and the employee, or unique characteristics of the employee’s role. Payment of these provisions is usually of a recurring and ongoing nature.
7-day shiftworker | Assign this tag if the employee is employed as a seven-day shift worker who is regularly rostered to work on Sundays and public holidays for the purpose of accruing an additional 1 week of annual leave per year. |
First Aid Officer | Assign this tag to an employee who has been trained to render first aid and who is the current holder of appropriate first aid qualifications and is appointed in writing to perform first aid duty on a regular ongoing basis. |
Laundry | Assign this tag to an employee where their uniform is not laundered at the expense of the employer. Full time employees will be paid a weekly allowance. Part time and casual employees will be paid an allowance per shift worked. |
Permanent Night Shift | Assign this tag to a shift worker who is required to work night shifts that do not rotate with another shift or shifts or day work and which continues for a period of not less than four consecutive weeks. |
TIL of OT | Assign this tag to an employee where they elect to permanently accrue time in lieu rather than be paid at overtime rates. |
System Limitations
Please note that rules will not be able to interpret or calculate the below clauses due to platform limitations and will require manual intervention.
The employer and an employee may agree to an arrangement under which the employee works on their normal rostered days off and accumulates up to 5 banked rostered days off.
Under Clause 19.3, an employee must perform higher duties for more than one day to qualify for the higher classification rate. However, the system determines eligibility on a per-shift basis rather than on a per-day basis. This may result in incorrect application of the higher classification rate for employees working multiple shifts within the same day. Therefore, manual adjustments are required to remove the higher classification. Please see the example below:
- An employee performed higher duties across multiple shifts on Thursday. The system applied the higher classification rate to their shifts for the entire day. To comply with Clause 19.3, manual intervention is required to remove the higher classification rate if the one-day threshold has not been exceeded.
- 23.3(c) that, if the employee requests at any time, the employer must pay the employee, for overtime covered by the agreement but not taken as time off, at the overtime rate applicable to the overtime when worked
- 23.5 Time off must be taken:
- within the period of 6 months after the overtime is worked; and
- at a time or times within that period of 6 months agreed by the employee and employer.
- 23.6 If the employee requests at any time to be paid for overtime covered by an agreement under clause 23 but not taken as time off, the employer must pay the employee for the overtime, in the next pay period following the request, at the overtime rate applicable to the overtime when worked.
- 23.7 If time off for overtime that has been worked is not taken within the period of 6 months mentioned in clause 23.5, the employer must pay the employee for the overtime, in the next pay period following those 6 months, at the overtime rate applicable to the overtime when worked.
- 29.3(c) that, if the employee requests at any time, the employer must pay the employee, for overtime covered by the agreement but not taken as time off, at the overtime rate applicable to the overtime when worked
- 29.5 Time off must be taken:
- within the period of 6 months after the overtime is worked; and
- at a time or times within that period of 6 months agreed by the employee and employer.
- 29.6 If the employee requests at any time to be paid for overtime covered by an agreement under clause 29 but not taken as time off, the employer must pay the employee for the overtime, in the next pay period following the request, at the overtime rate applicable to the overtime when worked.
- 29.7 If time off for overtime that has been worked is not taken within the period of 6 months mentioned in clause 29.5, the employer must pay the employee for the overtime, in the next pay period following those 6 months, at the overtime rate applicable to the overtime when worked.
The employer and an employee may agree that the employee may take a period of ordinary hours as time off and make up that time off by working at another time during which the employee may work ordinary hours.
- As the make-up time is subject to penalty shifts (afternoon/night shift penalties), the system cannot automatically apply the correct penalties to make-up time.
Further information
Time off instead of payment for overtime leave accrues at the same rate as the number of overtime hours worked. For example, an employee who worked two overtime hours has an entitlement to two hours’ time off. If you do take time off for overtime and the time off you intend, pay it out, you must pay at the overtime rate applicable to the overtime when worked
It also applies when you terminate an employee and you have to pay out the time. To pay it out correctly, you will need to record the overtime rate manually while you are processing the time in lieu accrual. We suggest that you record the overtime details in the Notes section of the leave accrual line in the pay run.
If you are required to pay out the time off for overtime either before termination or during termination, you can run a Pay Run Audit Report. It will show the pay runs for the employee where they accrued Time in Lieu, enabling yout to determine the applicable rates. Next, you can run an Employee Payment History Report to determine if they took any of the time off for overtime. You can then determine the correct balance based on the number of hours by taking the equivalent to the overtime payment that you made.
Example: an employee who worked two (2) overtime hours at what would have been the rate of time and a half, is then entitled to three (3) hours of time off leave to be accrued. In our above example (the first accrual line of the screen shot) you would take 0.5 hours x 1.5 = 0.75 hours. Therefore, you will need to adjust the time-in-lieu balance by adding a further 0.25 hours (0.75 hours – 0.5 hours = 0.25 hours).