Calculating penalty rates and overtime

Penalty rates and overtime are calculated on the casual ordinary hourly rate.

The casual ordinary hourly rate is made up of:

• the ordinary hourly rate
• the casual loading of 25% of the ordinary hourly rate.

The ordinary hourly rate is made up of:

• the minimum hourly rate for an employee's classification
• any applicable all-purpose allowances.

When overtime applies

Dayworkers

Casual dayworkers get overtime when they work:

• more than an average of 38 hours per week, but not more than 152 hours in 28 days
• more than 8 hours on any day or shift, unless they've agreed to a roster of up to 12 hours
• before 6am or after 6pm, unless they mutually agreed to change the spread of ordinary hours by shifting the spread of hours up or down by up to one hour (such as 5am to 5pm or 7am to 7pm)
• outside Monday to Friday, unless they mutually agreed to work ordinary hours on weekends.

Agreement to change the spread of hours or to work ordinary hours on weekends can be reached between an employer and:

• an individual employee, or
• the majority of employees affected.

Work performed before the spread of hours (for example, before 6am) which is continuous with ordinary hours for the purpose, for example, of getting the plant in a state of readiness for production, will be considered ordinary hours and form part of the 38 ordinary hours of work.

Shiftworkers

Casuals shiftworkers get overtime when they work more than:

• one shift in a 24 hour period
• more than 8 hours on any day or shift, unless they've agreed to a roster of up to 12 hours
• an average of 38 hours per week, but not more than 152 hours in 28 days.

By agreement with the majority of employees, rosters for continuous shiftworkers can be averaged over a period of up to 12 months.