New Casual Staff Penalty Rates Announced
If you are a casual employee or an employer in the Hospitality Industry who employs casual staff, there’s a good chance you have been affected by the changes to casual overtime penalty rates recently announced by Fair Work Australia.
While most hospitality based companies and casual staff are now familiar with these changes to the law, there still seems to be some confusion over the details.
In a nutshell, the law states that all staff employed on a casual basis are now entitled to overtime payments for any hours worked in excess of 12 hours on any given day and 38 hours in any given week.
The new casual overtime rates law states:
- The first 2 hrs of overtime worked above 12 hrs per day and/or 38 hrs per week (or an average of 38 hours per week over a roster cycle which may not exceed 4 weeks) must be paid 1 and a 1/2 times the award rate.
- Any additional hours above and over point a) are paid double time.
These laws have had implications for both casual employees and employers of casual staff.
For casual staff, on a positive note you are now paid at a higher rate for overtime as stated above. On a more negative note, you may find this limits the amount of overtime you are able to work as employers seek to limit costs by cutting overtime hours.
For employers of casual staff, wages costs may have increased for your casual staff who remain working on shifts beyond the non penalty rate thresholds and roster management may become more complicated and need to be adjusted.
If you are a Clifford Wallace Agency client or casual staff member who is still unclear how these changes affect you, please feel free to contact our office for more information. Click Here