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Updated casual overtime rates in modern awards

Changes to overtime pay and how it is calculated for casual employees.
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Updated casual overtime rates in modern awards

Updated casual overtime rates in modern awards

26 November 2020

By Siobhann Provost

The Fair Work Commission (FWC) has made changes to modern awards of how casuals will be paid overtime and how it is calculated.

The modern awards that are changing are listed in this article and they take effect on, or after 20 November 2020.

Companies need to assess whether they have casual employees, if they work overtime and the applicable modern award to ensure the correct overtime rate and pay calculation method is applied.

The definition of overtime can vary depending on the modern award. In general, a casual may receive overtime when they work more than a certain number of hours a day, more than 38 hours per week or what is allocated in the relevant award.

What to communicate to casual employees?

If there are any changes to how a casual employee is to be paid or how the pay is calculated, it is recommended to communicate these changes to impacted casual employees prior to the next pay.

Calculation methods

There are three methods to calculate overtime pay:
  • The substitution method excludes casual loading and overtime is calculated on the permanent base rate.
  • The cumulative method includes the casual loading and overtime entitlement which are applied to the permanent base rate.
  • The compounding method includes the casual loaded rate of pay to calculate the overtime entitlement.

Casual overtime rate of pay is increasing:

  • Aged Care Award (will take effect from the first full pay period on or after 01 March 2021)
  • Black Coal Mining Industry Award
  • Broadcasting, Recorded Entertainment and Cinemas Award
  • Business Equipment Award
  • Concrete Products Award
  • Contract Call Centres Award
  • Electrical, Electronic and Communications Contracting Award
  • Health Professionals and Support Services Award from substitution
  • Labour Market Assistance Industry Award
  • Marine Tourism and Charter Vessels Award
  • Marine Towage Award
  • Ports, Harbours and Enclosed Water Vessels Award
  • Sugar Industry Award
  • Stevedoring Industry Award
  • Surveying Award
  • Telecommunications Services Award
  • Transport (Cash in Transit) Award
  • Casual overtime rate of pay is decreasing:
  • Aluminium Industry Award
  • Ambulance and Patient Transport Industry Award
  • Amusement, Events and Recreational Award
  • Local Government Industry Award
  • Passenger Vehicle Transportation Award

Changes to casual overtime

  • Salt Industry Award
  • Supported Employment Services Award
  • Travelling Shows Award
  • Water Industry Award

No change to the casual overtime rate of pay:

  • Aboriginal Community Controlled Health Services Award
  • Airline Operations - Ground Staff Award
  • Animal Care and Veterinary Services Award
  • Architects Award
  • Asphalt Industry Award
  • Banking, Finance and Insurance Award
  • Building and Construction General On-site Award
  • Car Parking Award
  • Cement, Lime and Quarrying Award
  • Cemetery Industry Award
  • Children’s Services Award 2010
  • Cleaning Servcies Award
  • Clerks - Private Sector Award
  • Coal Export Terminals Award
  • Commercial Sales Award
  • Educational Services (Post-Secondary Education) Award
  • Educational Services (Schools) General Staff Award
  • Educational Services (Teachers) Award
  • Electrical Power Industry Award
  • Fast Food Indstry Award
  • Fitness Industry Award
  • Food, Beverage and Tobacco Manufacturing Award
  • Funeral Industry Award
  • Gardening and Landscaping Services Award
  • Gas Industry Award
  • General Retail Industry Award
  • Graphic Arts, Printing and Publishing Award
  • Hair and Beauty Industry Award
  • Horse and Greyhound Training Award
  • Hydrocarbons Industry (Upstream) Award
  • Joinery and Building Trades Award
  • Legal Services Award
  • Live Performance Award
  • Mannequins and Models Award
  • Manufacturing and Associated Industries and Occupations Award
  • Market and Social Research Award
  • Meat Industry Award
  • Medical Practitioners Award
  • Mining Industry Award
  • Miscellaneous Award
  • Mobile Crane Hiring Award
  • Nursery Award
  • Nurses Award
  • Oil Refining and Manufacturing Award
  • Pastoral Award
  • Pest Control Industry Award
  • Pharmaceutical Industry Award
  • Pharmacy Industry Award
  • Plumbing and Fire Sprinklers Award
  • Port Authorities Award
  • Poultry Processing Award
  • Premixed Concrete Award
  • Professional Diving Industry (Industrial) Award
  • Racing Clubs Events Award
  • Racing Industry Ground Maintenance Award
  • Rail Industry Award
  • Real Estate Industry Award
  • Seafood Processing Award
  • Security Services Award
  • Silviculture Award
  • Sporting Organisations Award
  • State Government Agencies Award
  • Storage Services and Wholesale Award
  • Textile, Clothing, Footwear and Associated Industry Award
  • Vehicle Manufacturing, Repair, Services and Retail Award
  • Waste Management Award
  • Wine Industry Award
  • Wool Storage, Sampling and Testing Award

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