Casuals and overtime – when do you have to pay?
As a rule of thumb, casual employees should be paid overtime whenever they work more than their normal hours. The issue lies in identifying what their normal hours are as the definition of normal hours can change depending on the applicable industry Award.
“Ordinary hours of work” can refer to the normal working hours (eg: between 7am and 7pm, as in the Clerks Award) and the maximum hours that can be worked for a certain period (day, week or fortnight). Any work carried outside of the defined ordinary work hours would therefore attract overtime.
However, the National Employment Standards state that an employee can only work up to 38 hours of “ordinary work” per week. Where a casual works more than 38 hours in any one week they would be paid overtime for the hours in excess of 38. The applicable industry Award will tell you how to treat overtime entitlement on a daily basis.
For more information, we invite you to check out the Fair Work Ombudsman’s definition of ordinary hours of work and overtime pay by clicking on the links below.
Consult your HR advisor for any additional questions regarding this complex matter or call us at Wurth HR on 1300 900 741.