Casual Overtime Rates to Increase

A decision by the Fair Work Commission has ruled that casual overtime rates be calculated inclusive of the 25% casual loading.

Effecting 97 different Modern Awards, the changes will take affect from 20 November 2020 for all the awards (except for the Aged Care Award which has been given a reprieve until 1 March 2021).

How Have Casual Overtime Rates been Calculated in the Past?

In the past, many Modern Awards applied overtime for casuals based on the permanent ordinary rate (in other words, not inclusive of the 25% casual loading). The effect of this decision is that overtime rates for casuals will now be based on the casual ordinary rate (inclusive of the 25% casual loading).

In What Awards Are Overtime Rates Increasing?

Details for which Awards are affected can be downloaded from the Fair Work Website.

This decision may impact many businesses employing casuals and could result in significant increases to wages costs. If you have any questions regarding these changes, please contact People Smartz.

Are Enterprise Agreements effected by the Modern Award Changes?

Generally, the changes to overtime rates will not effect Enterprise Agreements except where the Agreements are read in conjunction with the terms of an affected Modern Award.

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