Do you employ casual workers?
If you do, you should keep reading… A decision has recently been made by the Fair Work Commission that overtime for casuals should be calculated using the casual ordinary rate (inclusive of the 25% casual loading). This ruling comes as part of the four yearly review of Modern Awards.
Summary of the changes
- New overtime penalty rates for casual employees will be inserted into 97 Modern Awards.
- These changes will take effect from 1 March 2021 for the Aged Care Award and 20 November 2020 for all other affected Modern Awards.
- The changes will not impact enterprise agreements that operate to the exclusion of a Modern Award; however, they will apply to businesses covered by enterprise agreements that incorporate or are read in conjunction with the terms of a Modern Award.
Where your business utilises casuals you should check the requirement to pay overtime. Keep in mind, there may be other circumstances apart from working over 38 hours per week that overtime for casuals may apply. Modern award rate tables will be updated in due course.
The full decision can be found here.
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