This article originally appeared on WorkplaceInfo. (22/06/11)
Source: Paul Munro, IR Consultant.
Are casual employees entitled to overtime payments under some modern awards?
This question was recently sent to WorkplaceInfo.
Q: We have employees in retail outlets employed under the General Retail Industry Award 2010, the vast majority of whom are casual employees.
In some instances, particularly during busy periods such as around Easter holiday or Christmas holiday time, some casual employees may be required to work hours in excess of 38 hours in a particular week.
The relevant provisions in the retail modern award appear to exclude casuals from an entitlement to payment of overtime penalty rates.
Does this mean a casual employee under the retail modern award can work (say) 50 hours in a particular week without being entitled to overtime penalty rates?
Does this apply to all award-covered employees in our business?
A: A casual employee’s entitlement to overtime penalty rates is determined by the applicable modern award.
In the case of the general retail modern award, Fair Work Australia (FWA) considered an application to vary the award to remove ambiguity as to whether overtime should extend to casuals.
FWA determined there is no entitlement to overtime for casual employees under this award.
This means the casual employee will be paid at their ordinary casual hourly rate for all time worked, except in specific circumstances (eg work on Sunday, work on a public holiday).
Other modern awards
Similar wording in other modern awards such as in the restaurant industry, hospitality industry, and fast food industry would be interpreted to have the same outcome for casual employees. See further, modern awards.
Check the relevant award
It should be noted, however, that this is not a ‘standard’ provision in modern awards with respect to overtime penalty rates, so a casual employee may have an entitlement to overtime penalty rates, subject to the provisions in the applicable modern award.
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