As part of its 4-yearly review of Modern Awards, the Full Bench of the Fair Work Commission (FWC) has made a number of changes, including to re-word clauses or insert new clauses, in a number of Modern Awards to clarify how overtime is calculated for casual employees.
These changes come into operation from the first full pay period on or after 20 November 2020 for almost all impacted awards.
The exception is the Aged Care Award 2010 where these changes only come into operation from 1 March 2021, as a result of the disproportionate effects the COVID-19 pandemic on the aged care sector.
What are the changes?
Following an extensive public consultation and consideration process, the FWC has outlined a variety of changes to wording of a number Modern Awards to clarify when overtime applies for casual employees, and the method of calculating overtime rates for casual employees.
Most importantly, numerous Awards have been amended to provide clearer wording in relation to whether a compounding, cumulative or substitution approach to calculating overtime rates for casual employees applies to the particular Award.
Based on the FWC’s decision, we set out which approach applies to each impacted Award below.
- Awards where overtime penalty rates are payable in substitution for the casual loading (substitution approach).