As a general rule, overtime for all employees, including casuals, must be paid after:

  • Eight hours a day (for casuals or where an RDO system is worked) or 7.6 hours a day (without an RDO)
  • 38 hours per week
  • Outside of the spread of hours provided in an award, for example 6am to 6pm for construction workers.

This means – if an employee works more than 8 hours (or 7.6 without RDO) they are then entitled to overtime for that day.

Overtime is paid at the rate of time and a half for the first two hours and double-time after that.

Overtime penalties should be calculated with reference to the permanent base rate, not the casual base rate, so casual overtime works like this

(a) Employee must be paid 175% of ordinary time hourly rate (hourly rate without the 25% casual loading) where the relevant penalty rate is time and a half.
(b) Employee must be paid 225% of ordinary time hourly rate (hourly rate without the 25% casual loading) where the relevant penalty rate is double time.

In addition, all employees are entitled to the following overtime related allowances:

  • At 1.5 hours of overtime after ordinary hours have been completed a meal allowance of $15.71, plus;
  • At 2 hours of overtime after ordinary hours have been completed an “overtime crib allowance” of 20 minutes of double-time pay.

These allowances are not paid on the weekend unless an employee has ordinary hours rostered on the weekend and then does the required overtime on top of this.

Paying above award rates does not automatically mean you don’t need to pay overtime.

Contact the Workplace Relations Team on (07) 3225 6407 to check if your arrangements are compliant.

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