A recent decision by the Fair Work Commission has changed the way overtime is calculated for casual employees covered by most awards. In short, overtime for these employees will now be calculated using their casual ordinary rate including casual loading.
Previously, overtime was payable on their ordinary rate excluding casual loading but this will no longer be the case. This ruling takes effect from 20 November 2020 for all of the 97 awards affected, other than the Aged Care Award (which takes effect in March 2021). WHAT DO YOU NEED TO DO?
Check if your Award/s are affected – the full list can be found here.
Ensure your payroll system and processes are setup to comply with the new requirements from 20 November 2020 onwards.
If your business has an Enterprise Agreement that either incorporates or is to be read in conjunction with the relevant Award/s, assess whether this change applies to you.
If you pay a flat rate, you should review your calculations.
We understand that for many businesses, this is yet another cost and inconvenience added to an already rough year. Edwards HR is here to answer your questions and support your business through the up’s and down’s so please contact us if you would like assistance.
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