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Fair Work Commission decision on overtime rates for casuals – 05/04/2019

By April 5, 2019 No Comments

On the 2nd April 2019, the Fair Work Commission published its decision in respect of the issue of overtime payments for casuals under the Horticulture Award. The decision can be found here: https://www.fwc.gov.au/documents/decisionssigned/html/2019fwcfb2108.htm

The Fair Work Commission has decided that the new requirement should take effect from the first full pay period on or after 15 April 2019.

Key details for growers from this decision are:

• Each ordinary hour of work worked by a casual employee on any day of the week (excluding public holidays) between 5:00am and 8:30pm will be paid at the employee’s minimum hourly wage for his or her classification plus casual loading of 25%;
• In a State or Territory that does not observe daylight saving, by agreement between the employer and a majority of affected casual employees, the 5:00am to the 8:30pm daily spread of hours can be moved forward 1 hour (4:00am to 7:30pm) for the period of daylight saving in other States and Territories.
• Each ordinary hour worked by a casual employee on any day of the week (excluding public holidays) between 8:31pm and 4:59am (or 7:31pm and 3:59am as per above provision for daylight savings) will attract a loading of 15% of the employee’s minimum hourly wage for his or her classification (in addition to the casual loading of 25%)
• The maximum number of ordinary hours which a casual employee may work per engagement, or on any day, is 12 ordinary hours
• All hours worked in excess of 12 hours per engagement, 12 hours in a single day or 304 ordinary hours over an eight-week period will be deemed over
• Each hour worked in excess of 12 hours per engagement, 12 hours in a single day or 304 ordinary hours over an eight-week period will be paid at a rate of 175% of the employee’s minimum hourly wage (inclusive of the casual loading)
• All hours worked by a casual employee on a public holiday (both ordinary hours and any over) will be paid at a rate of 225% of the employee’s minimum hourly wage for his or her classification (inclusive of casual loading)

WA Growers should note, that their casual employees may not be covered by the Horticulture Award. In Western Australia, the application of these changes will depend on how you run your business.

• If you run your business with a company or a trust with a company as trustee, the Federal pay rates apply as described in the above Fair Work Commission Decision.
• If you run your business as a sole trader or partnership or a trust with an individual as trustee, then state WA laws apply to you.
If you don’t know if a WA award applies to you or your business, contact Wageline on 1300 655 266 to determine the award coverage.

If you are unsure, please contact vegetablesWA on 08 9486 7515 or contact Fair Work via any of the following details available at https://www.fairwork.gov.au/contact-us