On 30 October 2020, the Fair Work Commission (the Commission) announced updates to the casual and overtime clauses in 97 awards. The updated clauses start from the first full pay period on or after 20 November 2020.
To find out if your award is affected and what you need to do, click the links below:
The updates are different for each award, but some common examples of how some awards have been updated include clarifying:
Some of these updates will mean changes to overtime pay rates for casual employees in some awards.
The FWC has made changes to 97 Awards, confirming the way casual employee’s overtime should be calculated – there are three (3) methods of calculating overtime for casual employees:
The Substitution Method
Overtime is calculation on the permanent base rate, and it excludes the casual loading:
$20 (base rate) x 150% (overtime penalty) = $30
The Cumulative Method
The overtime entitlement and the casual loading are applied to the permanent base rate:
$20 (base rate) x 175% (overtime penalty + 25% (casual loading)) = $35.00
The Compounding Method
The overtime entitlement is calculated on the casual loaded rate of pay:
$25 (base rate + 25% casual loading) x 150% (overtime rate) = $37.50
What do you need to do next?
To find out further information access the FairWork Ombudsman website below: