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The Clerks Award plays a pivotal role in shaping employment conditions for a substantial portion of the Australian workforce.
However, its intricate provisions can often lead to misunderstandings and unintentional non-compliance, potentially exposing businesses to legal risks and financial penalties.
This comprehensive guide aims to simplify the award’s complexities by dissecting its key components into clear, accessible sections.
Our goal is to equip employers with the knowledge needed to maintain compliance and ensure fair treatment of their staff while also empowering employees to fully understand their rights and entitlements under this important legislation.
Coverage of the Clerks—Private Sector Award 2020
The Clerks Award is an occupational award for clerical and administrative employees working in the private sector in Australia.
This award covers employers and their staff who are mainly engaged in clerical work, such as filing, typing, managing accounts, billing, maintaining records, answering calls, cash handling, and providing secretarial support. Under the award, employees engaged in these tasks are subject to specific labor laws and employment conditions.
The employers mentioned in the Fair Work Act 2009 must adhere to the specific requirements and standards set out in the Clerks—Private Sector Award 2020.
Some examples of private sector employees covered by the Clerks Award include:
- Administrative assistants
- Receptionists (e.g., in a tax accounting firm)
- Bookkeepers (e.g., in a manufacturing company)
- Clerical employees in a retail head office (if no retail activities are conducted at the office)
- Diploma-qualified employees who complete financial/tax schedules or income tax returns (except where their employer is in the banking, finance, or insurance industry)
- Wholesale travel operators selling packages directly to other travel companies
The Clerks Award also extends its coverage to on-hire clerical employees and their on-hire employers, provided they are not covered by another modern award with more appropriate classifications.
However, there are some exceptions to the coverage of the Clerks Award. The award does not apply to:
- Employees covered by a modern award that already contains clerical classifications
- Employees excluded from award coverage by the Fair Work Act 2009
- Employees covered by a modern enterprise award, enterprise instrument, or state reference public sector modern award
- Employers in relation to the excluded employees mentioned above
Additionally, the Clerks Award does not cover employers and employees who are covered by specific industry awards that contain clerical classifications, such as the Banking, Finance and Insurance Award 2020, the Health Professionals and Support Services Award 2020, or the Legal Services Award 2020, among others.
It’s important to note that if an employer is covered by more than one award, an employee who primarily performs clerical work will be covered by the award with the classification most appropriate to their work and the environment in which it is normally performed.
Types of Employment and Classifications
The Clerks—Private Sector Award recognises three types of employment: full-time, part-time, and casual. Employers must classify their employees into one of these three categories.
Types of Employment
Full-time Employees
A full-time employee is someone who is engaged to work either:
- 38 ordinary hours per week, or
- The number of ordinary hours (fewer than 38) per week that the employer considers full-time at the workplace.
The number of ordinary hours worked per week by a full-time employee may be averaged over a period of up to 4 weeks or an agreed roster period.
Part-time Employees
A part-time employee is engaged to work fewer than 38 ordinary hours per week (or the number considered full-time at the workplace) on a reasonably predictable basis. When engaging a part-time employee, the employer and employee must agree in writing on:
- The number of hours to be worked each day
- The days of the week on which the employee will work
- The times at which the employee will start and finish work each day
Any changes to the agreed hours or start and finish times must be agreed upon in writing between the employer and employee. The employer may change the days worked by giving the employee 7 days’ notice.
Part-time employees must be rostered for a minimum of 3 consecutive hours per shift.
Overtime rates apply for all time worked in excess of the agreed ordinary hours.
Casual Employees
A casual employee is an employee who is engaged and paid as a casual employee. They do not have guaranteed hours of work, usually work irregular hours, and do not get paid sick or annual leave. Trainees employed by a group training employer and hosted by an employer working in a classification defined in the award are also covered under specific terms of employment.
Casual employees are entitled to a 25% loading on top of the minimum hourly rate. This loading is paid instead of other entitlements from which casuals are excluded by the terms of the award and the National Employment Standards (NES).
When a casual employee works overtime, they must be paid the applicable overtime rates. Employers may determine the pay period for casual employees as weekly, fortnightly, or at the end of each engagement.
Note: As with part-time employees, casual employees must be paid for a minimum of 3 hours of work on each engagement, even if rostered for fewer than 3 consecutive hours.
The NES provides for offers and requests for casual conversion to full-time or part-time employment, and any disputes about such offers and requests are to be dealt with under the award’s dispute resolution clause.
What is a Request for Casual Conversion?
Casual conversion is the process by which a casual employee can become a permanent (full-time or part-time) employee. The National Employment Standards (NES) provide a pathway for long-term casual employees to request to convert to permanent employment and require employers to offer casual conversion in certain circumstances.
Employer Offers for Casual Conversion
An employer must offer a casual employee the opportunity to convert to permanent employment if:
- The employee has worked for the employer for 12 months
- The employee has worked a regular pattern of hours on an ongoing basis during the past 6 months
- The employee’s regular hours could continue as a permanent arrangement without significant adjustment
- The employer hasn’t decided there are reasonable business grounds not to make the offer
- The employer must make the offer in writing within 21 days after the employee’s 12-month anniversary. The employee must give the employer a written response within 21 days of receiving the offer, indicating whether they accept or decline the offer.
Employee Requests for Casual Conversion
A casual employee may request to convert to permanent employment if:
- They’ve been employed by the employer for at least 12 months
- They’ve worked a regular pattern of hours on an ongoing basis for at least the past 6 months
- Their regular hours could continue as a permanent arrangement without significant adjustment
The employer must give the employee a written response within 21 days, indicating whether they accept or refuse the request. The employer can only refuse the request if:
- There are reasonable business grounds to do so, and
- The reasonable business grounds are based on facts that are known or reasonably foreseeable
If a casual employee converts to permanent employment, they will be a full-time or part-time employee, depending on their regular work hours.
Any disputes about offers or requests for casual conversion are to be dealt with under the Clerks Award’s dispute resolution clause, which outlines the process for resolving disputes related to the National Employment Standards or any other matter arising under the award or the Fair Work Act 2009.
Classifications
Employers must classify employees covered by the Clerks Award in accordance with Schedule A—Classification Structure and Definitions. The classification is based on the characteristics and skills the employer requires the employee to possess and exercise to carry out the principal functions of the employment.
Employers must notify employees in writing of their classification and any changes to it.
The minimum rates applicable to each classification are outlined in the Minimum Rates clause of the award.
Hours of Work
The Clerks Award sets out the hours of work provisions for employees covered by the award. These provisions differ depending on whether an employee is classified as a shiftworker or not. In this section, we will focus on the hours of work arrangements for employees who are not shiftworkers.
Ordinary Hours of Work (Employees Other Than Shiftworkers)
For employees who are not shiftworkers, the maximum number of ordinary hours that can be worked in a week is an average of:
- 38 hours per week over a period of up to 4 weeks, or
- 38 hours per week over a roster period agreed between the employer and the employee
For example, an employee could work 40 hours in one week and 36 hours in the next week, as long as the average over the 4-week period is 38 hours per week.
Ordinary hours may be worked between:
- 7.00 am and 7.00 pm Monday to Friday, and
- 7.00 am and 12.30 pm on Saturday
The spread of ordinary hours (7.00 am to 7.00 pm Monday to Friday and 7.00 am to 12.30 pm Saturday) may be moved up to one hour forward or one hour back by agreement between an employer and:
- The majority of employees at the workplace
- The majority of employees in a discrete section of the workplace, or
- An individual employee
Different agreements may be reached with the majority of employees in different sections of the workplace or with different individual employees.
If employees covered by the Clerks Award work in association with employees covered by a different modern award that sets a different spread of hours, and the majority of employees at the workplace are covered by that other award, the employer may direct the employees covered by the Clerks Award to perform work within the spread of ordinary hours prescribed by the other award.
For example, if an employee covered by the Clerks Award works in a manufacturing company where the majority of employees are covered by an award and have ordinary hours between 6.00 am. and 6. 00 pm, the employer may direct the Clerks Award employee to work within those hours.
Ordinary hours of work must be worked continuously (except for rest and meal breaks) and at the employer’s discretion in accordance with the award.
The maximum number of ordinary hours that can be worked on any day is 10, excluding unpaid meal breaks.
The employer and an employee may agree that the employee can take time off during ordinary hours and make up that time by working at another time during ordinary hours.
Rostering Arrangements (Employees Other Than Shiftworkers)
An employer may roster employees in such a way that they:
- Work longer hours on one or more days over a roster cycle as part of their ordinary hours of duty, and
- Take a rostered day off at some later time
For example, an employee could work 8 hours per day for 19 days and take the 20th day as a rostered day off.
An employee who works on a rostered day off basis on a 20-day roster cycle over a 12-month period is entitled to 12 rostered days off over that period. The employer must give the employee 4 weeks’ notice of the day the employee is to take as a rostered day off.
With the employer’s agreement, an employee may substitute their scheduled rostered day off for another day. The employer may also substitute another day for a rostered day off in certain circumstances, such as a machinery breakdown, electrical power shortage or breakdown, an unexpected spike in work, or another emergency situation.
The employer and an employee may agree to an arrangement where the employee works on their normal rostered days off and accumulates up to 5 banked rostered days off that may be taken at times convenient to both parties.
Note: The employer must keep a record of the employee’s banked rostered days off, and the employee must give at least 5 days’ notice before taking a banked rostered day off.
An employee is not entitled to overtime payment for working more than the average number of ordinary hours in a week as a result of working on a rostered day off under the banking system.
No reduction in payment is to be made for an employee working less than the average number of ordinary hours per week as a result of taking banked rostered days off, but the employee must be paid according to the average pay system during any week they elect to take a banked rostered day off.
On the termination of an employee’s employment, the employer must pay the employee for any banked rostered day off that has not been taken an amount equal to 20% of the employee’s average weekly wages (not including overtime) over the 6 months immediately before the termination.
For example, if an employee has 3 banked rostered days off at the time of their termination and their average weekly wage over the last 6 months was $1,000, the employer must pay the employee an additional $600 (3 days x 20% of $1,000) on termination.
Breaks (Employees Other Than Shiftworkers)
Employees who are not shiftworkers are entitled to the following breaks:
Hours worked | Breaks |
More than 3 but not more than 8 ordinary hours | One 10-minute paid rest break (to be taken at a time determined by the employer) |
More than 8 ordinary hours | Two 10-minute paid rest breaks (to be taken at a time determined by the employer) |
More than 4 hours of overtime on a Saturday morning | One 10-minute paid rest break |
For example, if an employee works from 9.00 am to 5.30 pm with a 30-minute unpaid lunch break, they would be entitled to one 10-minute paid rest break during the day.
An employee who works more than 5 hours at a time is entitled to one 30 to 60-minute unpaid meal break, to be taken within the first 5 hours of work and within 5 hours after resuming work after a meal break.
For example, an employee who starts work at 9.00 am must take their meal break no later than 2.00 pm, and if they resume work at 2.30 pm, they must take another meal break (if working more than 5 hours after resuming) no later than 7.30 pm.
If an employee is required to work through their meal break, the employer must pay them 200% of the minimum hourly rate from when the meal break would have commenced until a meal break is allowed.
Where suitable to business requirements, the employer may arrange for an employee who is entitled to 2 paid rest breaks to take one rest break before, and one rest break after, their unpaid meal break.
Minimum Rates
The Clerks—Private Sector Award 2020 sets out the minimum wages and allowances that employers must pay their employees.
Adult Employees
An employer must pay an adult employee (21 years of age or older) the minimum rate applicable to their classification level as specified in the award.
The minimum rates for full-time and part-time employees can be found in the pay guide for the relevant financial year, which is accessible under the “summary” section of the award on the Fair Work Commission website.
When calculating an employee’s years of service for the purposes of determining their minimum rate, any service in the relevant classification level, including administrative and clerical experience with a previous employer, counts towards a year of service. If required by their employer, an employee must provide reasonable evidence to verify their service.
Junior Employees
An employer must pay a junior employee (under 21 years of age) a percentage of the minimum rate that would otherwise be applicable to an adult employee in the same classification. The percentage varies depending on the employee’s age and can be found in the pay guide for the relevant financial year.
Annualised Wage Arrangements
An employer may pay a full-time employee an annualised wage that satisfies various provisions of the award, such as minimum rates, allowances, overtime, penalty rates, and annual leave loading.
The employer must advise the employee in writing and keep a record of:
- The annualised wage payable
- Which award provisions will be satisfied by the annualised wage
- The method by which the annualised wage has been calculated, including each separate component and any overtime or penalty assumptions used
- The outer limit of ordinary hours that would attract a penalty rate and the outer limit of overtime hours the employee may be required to work in a pay period or roster cycle without being entitled to an additional amount
If an employee works hours beyond the outer limits specified, those hours must be paid separately according to the applicable award provisions.
Note: The annualised wage must not disadvantage employees and must be no less than what they would have received under the award for the work performed over the relevant period.
The employer must calculate the remuneration that would have been payable under the award every 12 months or upon termination of employment and compare it to the annualised wage paid. Any shortfall must be paid to the employee within 14 days.
For the purposes of the NES, an employee’s base rate of pay under an annualised wage arrangement comprises the portion equivalent to their minimum rate and excludes any incentive-based payments, bonuses, loadings, monetary allowances, overtime, and penalties.
Superannuation
Superannuation is a compulsory system of savings for retirement in Australia. Employers must pay a percentage of an employee’s ordinary time earnings into a complying superannuation fund or retirement savings account.
This percentage, known as the Superannuation Guarantee (SG), is set by the government and may change over time. A group training employer must comply with superannuation legislation, including the Superannuation Guarantee (Administration) Act 1992 (Cth) and the NES. Additionally, group training employers must adhere to conditions and requirements for annualised wage arrangements and allowances for trainees employed by them.
The SG rate is scheduled to increase gradually over the next few years, reaching 12% by 2025.
As of July 1 2024, the SG is 11.5% of an employee’s ordinary time earnings.
Note: Employers must pay the SG at least quarterly and by the due dates set by the Australian Taxation Office. The SG is paid in addition to an employee’s wages and does not come out of their minimum rate of pay.
Employees can choose the complying superannuation fund or retirement savings account for their SG contributions. If an employee does not make a choice, the employer must pay the contributions into a default fund that meets certain requirements.
Allowances
This Award 2 entitles employees to various monetary allowances in specified circumstances. These allowances are set as a percentage of the minimum rate and can be viewed in the pay guide for the relevant financial year.
The following table summarises the allowances available under the award:
Allowance | Definition |
First Aid Allowance | Paid to an employee who has current first aid qualifications and training that the employer considers appropriate and is appointed by the employer to perform first aid duties. |
Higher Duties Allowance | Paid to an employee who is required to perform any of the duties of a higher classification for more than one day, at least at the minimum rate applicable to the higher level. |
Clothing and Footwear Allowance | Reimbursement for the cost of purchasing uniforms, protective clothing, and appropriate protective footwear not supplied or paid for by the employer when an employee is required to work in damaging conditions. If an employee is required to launder their uniform, the employer must pay a weekly allowance for a full-time employee or a per-shift allowance for a part-time or casual employee. |
Meal Allowance | Paid to an employee who is required to work overtime of more than 1.5 hours after their ordinary time of ending work and was not given at least 24 hours notice. The employer must either pay the meal allowance or supply the employee with a meal. If the number of overtime hours worked exceeds 4, the employer must pay a further meal allowance. |
Vehicle Allowance | Paid to an employee who is required by their employer to use their own motor vehicle (car or motorcycle) in performing their duties, up to a maximum of 400 kilometres per week. If the employer provides the motor vehicle, they must pay all expenses, including registration, running costs, and maintenance. |
Living Away From Home Allowance | Paid to an employee who is required by their employer to temporarily work away from their usual place of employment, necessitating an overnight stay away from their usual residence, and is not provided with fares, meals, and accommodation by the employer. The allowance covers all fares to and from the temporary work location and all reasonable expenses incurred for meals and accommodation. The employer must also pay the employee ordinary rates of pay for time spent travelling between their usual place of employment and the temporary location, up to a maximum of 8 hours in 24 hours. |
Transport Reimbursement for Shiftwork | Reimbursement for the cost of taking a commercial passenger vehicle between the employee’s usual place of residence and their place of employment when an employee working shiftwork starts or finishes work at a time other than their normal time, and reasonable means of transport are not available, and the employer does not provide or arrange for a suitable means of transport at no cost to the employee. |
Note: The specific rates for these allowances can be found in the pay guide for the relevant financial year.
Note: The specific rates for these allowances can be found in the pay guide for the relevant financial year.
Overtime and Penalty Rates (Employees Other Than Shiftworkers)
This section of the Clerks—Private Sector Award 2020 outlines the overtime rates and penalty rates that apply to employees who are not shiftworkers.
*Shiftworkers should refer to the next section for the overtime and penalty rates that apply to them.
Overtime (Employees Other Than Shiftworkers)
An employer must pay an employee at the overtime rate for any hours worked at the direction of the employer:
- In excess of the ordinary weekly hours
- In excess of 10 ordinary hours on any one day, excluding unpaid meal breaks
- Outside the spread of ordinary hours
- For overtime worked on a rostered day off that is not substituted or banked
- For part-time employees, in excess of the number of ordinary hours that the employee has agreed to work or as varied
Ordinary weekly hours are the hours of work fixed in a workplace in accordance with the relevant clauses of the award or as varied in accordance with those clauses.
An employee is entitled to be paid overtime when the total overtime worked in one week is at least half an hour.
Payment for Working Overtime
The overtime rate is calculated as a percentage of the minimum hourly rate, as shown in the table below:
Hours of Overtime Worked per Day | Overtime Rate – Full-time and Part-time Employees | Overtime Rate – Casual Employees |
Monday to Saturday – first 2 hours | 150% | 175% |
Monday to Saturday – after 2 hours | 200% | 225% |
Sunday – all-day | 200% | 225% |
Public holiday – all-day | 250% | 275% |
An employer must pay an employee a minimum of 3 hours at overtime rates for work performed on a Saturday where an employee has worked 38 hours or more from Monday to Friday.
An employee required to work overtime hours on a Sunday is entitled to not less than 4 hours’ pay (inclusive of ordinary hours worked).
Return to Duty
An employer must pay an employee at the overtime rate where the employee is required to return to duty after the usual finishing hour of work for that day. The employer must pay a minimum of 3 hours for such work. This does not apply where the work is continuous (subject to a meal break of not more than one hour) with the start or finish of ordinary working time.
Rest Period After Working Overtime (Employees Other Than Shiftworkers)
When overtime is required, employees must, wherever reasonably practical, have at least 10 consecutive hours off duty between hours worked on successive days.
If an employee is required to start working their ordinary hours due to overtime worked but has not had 10 consecutive hours off duty, the employer must release the employee from duty until they have had 10 consecutive hours off duty, without loss of pay for any ordinary hours not worked as a result.
If, at the employer’s direction, an employee continues or resumes working without having at least 10 consecutive hours off duty, the employer must pay the employee at 200% of their minimum hourly rate until they are released from duty.
The employee must then be released from duty until they have had 10 consecutive hours off duty, without loss of pay for any ordinary hours not worked as a result.
Overtime worked when an employee is required to return to duty after the usual finishing hour of work must not be regarded as overtime for the purposes of the rest period provisions.
Time Off Instead of Payment for Overtime (Employees Other Than Shiftworkers)
An employee and employer may agree in writing to the employee taking time off instead of being paid for a particular amount of overtime worked. The agreement must state:
- The number of overtime hours to which it applies and when those hours were worked
- That the employer and employee agree that the employee may take time off instead of being paid for the overtime
- That, if the employee requests at any time, the employer must pay the employee for overtime covered by the agreement but not taken as time off, at the overtime rate applicable to the overtime when worked
- That any payment mentioned above must be made in the next pay period following the request
- The period of time off that an employee is entitled to take is the same as the number of overtime hours worked.
Time off must be taken within 6 months after the overtime is worked and at a time or times agreed by the employee and employer. If time off for overtime worked is not taken within 6 months, the employer must pay the employee for the overtime at the overtime rate applicable to the overtime when worked.
The employer must keep a copy of any agreement as an employee record and must not exert undue influence or pressure on an employee regarding a decision to make or not make such an agreement.
If, on the termination of the employee’s employment, time off for overtime worked has not been taken, the employer must pay the employee for the overtime at the overtime rate applicable to the overtime when worked.
Penalty Rates (Employees Other Than Shiftworkers)
Penalty rates are higher rates of pay for ordinary hours worked at specified times and on specified days.
Saturday
An employer must pay an employee at the rate of 125% of the minimum hourly rate for ordinary hours worked on a Saturday.
Sunday
If an employee is directed to work ordinary hours on a Sunday, the employer must pay the employee at the rate of 200% of the minimum hourly rate. An employee required to work ordinary hours on a Sunday is entitled to not less than 4 hours of pay.
Public Holidays
An employer must pay an employee at the rate of 250% of the minimum hourly rate for hours worked on a public holiday or a substituted day or part-day.
If an employee works on both a public holiday and the substituted day or part-day, they are entitled to be paid the penalty rate for one of the days or part-days, chosen by the employee.
An employee required to work on a public holiday is entitled to not less than 4 hours’ pay. Hours of work performed immediately before or after a part-day public holiday, that form part of one continuous shift, are counted as part of the minimum payment/engagement period.
Shiftwork
This section of the Award applies to employees who are required to work their ordinary hours on afternoon shifts, night shifts, or permanent night shifts.
Application of Part
The shiftwork provisions apply to employees working:
- Afternoon shift: A shift finishing after 7.00 pm and at or before midnight
- Night shift: A shift finishing after midnight and at or before 7.00 am
- Permanent night shift: A night shift that does not rotate with another shift or day work and continues for 4 consecutive weeks or longer
The spread of ordinary hours on these shifts may be moved up to one hour forward or back by agreement between the employer and the majority of employees at the workplace, in a discrete section of the workplace, or with an individual employee.
Different agreements may be reached with different sections of the workplace or individual employees.
Ordinary Hours of Work and Rostering for Shiftwork
The maximum number of ordinary hours that can be worked in a week is an average of 38 hours over a 4-week period or an agreed roster period not exceeding 12 months. The maximum number of ordinary hours that can be worked in any day is 10, including paid breaks.
The following rostering arrangements apply to shiftworkers:
- A maximum of 6 shifts can be worked over a week
- A Sunday may be included
Changes to shift start and finish times may be made by the employer giving the employee at least 7 days’ notice or by mutual agreement at any time.
An employee may agree with their employer to take a period of ordinary hours as time off and make up that time by working at another time during which they may work ordinary hours.
Breaks for Shiftwork
Shiftworkers are entitled to the following breaks:
- One 20-minute paid meal break per shift, taken within 5 hours of starting the shift and counted as time worked
- One paid 10-minute rest break for shifts of more than 3 and fewer than 8 ordinary hours
- Two paid 10-minute rest breaks for shifts of 8 ordinary hours or more
- One paid 10-minute rest break for employees working more than 4 hours overtime on Saturday morning
The employer determines the suitable time for rest breaks. Where suitable to business requirements, the employer will arrange for an employee entitled to 2 paid rest breaks to take one before and one after their paid meal break.
Overtime for Shiftwork
Overtime rates for shiftworkers are as follows:
Time Worked | Overtime Rate – Full-time and Part-time Employees | Overtime Rate – Casual Employees |
In excess of ordinary weekly hours: | ||
– First 3 hours | 150% | 175% |
– After 3 hours | 200% | 225% |
In excess of ordinary daily hours on an ordinary shift: | ||
– First 2 hours | 150% | 175% |
– After 2 hours | 200% | 225% |
Saturday, Sunday, or public holiday that is not an ordinary working day | 200% | 225% |
Note: Penalty rates for shiftwork are not cumulative on overtime rates, which means that when a shiftworker works overtime hours, they will receive either the applicable shiftwork penalty rate or the overtime rate, whichever is higher, but not both rates combined.
An employer must pay a shiftworker a minimum of 4 hours at the overtime rate if they are required to work overtime on a Saturday, Sunday, or public holiday that they would not have been ordinarily rostered to work, and the work is not continuous with the start or finish of their ordinary shift.
Time Off Instead of Payment for Overtime for Shiftwork
An employee and employer may agree in writing to the employee taking time off instead of being paid for overtime worked. The agreement must state the number of overtime hours worked, when those hours were worked, and that the employee may take time off instead of being paid for the overtime.
If the employee requests, the employer must pay the employee for overtime covered by the agreement but not taken as time off.
Time off must be taken within 6 months of the overtime being worked and at a time agreed by the employee and employer. If the time off is not taken within 6 months, the employer must pay the employee for the overtime at the applicable overtime rate.
The employer must keep a copy of the agreement as an employee record and must not exert undue influence or pressure on an employee to make or not make such an agreement.
If an employee has not taken time off for overtime worked on termination of employment, the employer must pay the employee for the overtime at the applicable rate.
Rest Period After Working Overtime for Shiftwork
When overtime is worked for the purposes of changing shift rosters, covering an absent employee’s shift, or by arrangement between employees, the following rest period provisions apply:
Employees must, wherever reasonably practical, have at least 8 consecutive hours off duty between hours worked on successive days.
If an employee, due to overtime worked, would be required to start work without having had 8 consecutive hours off duty, the employer must release the employee from duty until they have had 8 consecutive hours off duty, without loss of pay for ordinary hours not worked as a result.
If an employer directs an employee to resume or continue work without having had 8 consecutive hours off duty, the employer must pay the employee at 200% of the minimum hourly rate until the employee is released from duty, and the employee must not suffer any loss of pay for ordinary hours not worked as a result.
Penalty Rates for Shiftwork
An employer must pay a shiftworker ordinary hours at the relevant percentage of the minimum hourly rate, as follows:
Shift | Penalty Rate (% of minimum hourly rate) |
Afternoon or night | 115% |
Permanent night | 130% |
Saturday, Sunday, or public holiday | 150% |
However:
- An employee who starts an ordinary shift between 11.00 pm and midnight on a Sunday or public holiday that extends into the next day that is not a public holiday is not entitled to the Sunday or public holiday penalty rate for the time worked on that Sunday or public holiday.
- An employee who starts an ordinary shift between 11.00 pm and midnight on the day before a Sunday or public holiday that extends into that Sunday or public holiday is entitled to the Sunday or public holiday penalty rate for the time worked on that day.
Annual Leave
The Clerks Award provides employees with annual leave entitlements in accordance with the NES. Where an employee receives over-award payments resulting in a higher base rate of pay than the rate specified in the award, they are entitled to receive the higher rate while on paid annual leave.
Additional Paid Annual Leave for Certain Shiftworkers
Shiftworkers who are regularly rostered to work on Sundays and public holidays in a business that operates shifts continuously 24/7 are entitled to an additional week of paid annual leave under the NES.
Annual Leave Loading
During paid annual leave, an employer must pay an employee an additional payment for their ordinary hours of work in the period.
For an employee who would have worked on day work only had they not been on leave, the additional payment is the greater of:
- 17.5% of the minimum hourly rate for the employee’s ordinary hours of work in the period; or
- The minimum hourly rate for the employee’s ordinary hours of work in the period inclusive of weekend penalty rates.
For an employee who would have worked on shiftwork had they not been on leave, the additional payment is the greater of:
- 17.5% of the minimum hourly rate for the employee’s ordinary hours of work in the period; or
- The minimum hourly rate for the employee’s ordinary hours of work in the period inclusive of shift and weekend penalty rates for shiftwork.
- The additional payment is payable on leave accrued.
Other Annual Leave Provisions
Provision | Definition |
Annual Leave in Advance | An employer and employee may agree in writing to the employee taking paid annual leave before they have accrued an entitlement to the leave. The agreement must state the amount of leave to be taken in advance, the date on which the leave will commence, and be signed by both parties (and a parent/guardian if the employee is under 18). The employer must keep a copy of the agreement as an employee record. If, upon termination of employment, the employee has not accrued enough leave to cover the amount taken in advance, the employer may deduct the outstanding amount from any monies due to the employee. |
Direction to Take Annual Leave During Shutdown | An employer may direct an employee to take paid annual leave during a temporary shutdown period if they give the employee 28 days written notice (or a shorter period if agreed). The direction must be reasonable and in writing. An employee may take leave without pay or annual leave in advance during a temporary shutdown period. |
Excessive Leave Accruals | An employee has an excessive leave accrual if they have accrued more than 8 weeks paid annual leave (or 10 weeks for a shiftworker). The employer and employee may agree on how to reduce or eliminate the excessive leave accrual. If an agreement cannot be reached, the employer may direct the employee to take paid annual leave, subject to certain conditions. The employee may also require the employer to grant paid annual leave requested by the employee, subject to certain conditions. |
Cashing Out of Annual Leave | An employer and employee may agree in writing to cash out a particular amount of accrued paid annual leave, subject to certain conditions. The payment must not be less than what would have been payable had the employee taken the leave. The agreement must not result in the employee’s remaining accrued entitlement to paid annual leave being less than 4 weeks. A maximum of 2 weeks accrued paid annual leave may be cashed out in any 12-month period. |
Additional Types of Leave
Additional types of leave entitlements under the NES include the following:
Personal/Carer’s Leave and Compassionate Leave
- All employees (except casuals) are entitled to paid personal/carer’s leave.
- Casual employees are entitled to 2 days of unpaid carer’s leave per occasion and 2 days of unpaid compassionate leave per occasion.
- Personal/carer’s leave can be used when an employee is unfit for work due to a personal illness or injury, or needs to provide care or support to a member of their immediate family or household who requires care or support due to illness, injury, or an emergency.
- Compassionate leave can be taken when a member of the employee’s immediate family or household dies or contracts a life-threatening illness or injury.
Family and Domestic Violence Leave
- All employees (including casuals) are entitled to 10 days of paid family and domestic violence leave in a 12-month period.
- This leave is available to employees who need to deal with the impact of family and domestic violence, such as attending court hearings, accessing police services, or making arrangements for their safety or the safety of a family member.
Community Service Leave
- Employees (except casuals) are entitled to unpaid leave for voluntary emergency management activities and up to 10 days of paid jury service leave.
- Community service leave is available for employees who engage in eligible community service activities, such as voluntary emergency management or jury duty.
Parental Leave and Related Entitlements
- Employees (including casuals) are entitled to 12 months of unpaid parental leave, with a right to request an additional 12 months of unpaid leave.
- Parental leave entitlements also include adoption-related leave.
- Employees who have been employed for at least 12 months on a regular and systematic basis are entitled to parental leave and related entitlements.
Long Service Leave
- Long service leave is paid leave granted to employees who have been with the same employer for a long period of time.
- The entitlement varies between states and territories but is typically 2 months of paid leave after 10 years of service with the same employer.
Public Holidays
- Full-time and part-time employees are entitled to be absent from work on a day or part-day that is a public holiday.
- If an employee is absent on a public holiday, the employer must pay the employee their base rate of pay for their ordinary hours of work on that day or part-day.
- Casual employees are not entitled to be paid for public holidays unless they work on that day.
Key Takeaways
Interpreting and implementing the Clerks—Private Sector Award 2020 can be a challenging task for both employers and employees. While this guide strives to offer a thorough overview of the award’s key aspects, it’s crucial to remember that each business and employment situation has its unique nuances.
If you find yourself uncertain about your specific obligations or entitlements under this award, consulting with a specialised employment law firm like WilliamsonBarwick can provide invaluable clarity and assurance.
Our experienced legal team possesses an in-depth understanding of the Award and can guide you through its intricacies, ensuring you remain compliant and protected.
Whether you’re an employer striving to maintain fair workplace practices or an employee seeking to understand your rights, our team is ready to assist. We offer tailored advice, help resolve disputes, and provide guidance on any challenges that may arise within the award’s framework.
Don’t leave yourself vulnerable to non-compliance or misinterpretations. Contact us today to discuss your specific needs and ensure you’re making well-informed decisions about the Clerks Award.