The Fair Work Commission has issued its final determination in the 4 yearly review of modern awards – overtime for casuals. Under this determination, the overtime clause for casuals has been varied in 97 modern awards. As a result, the way that overtime for casuals is calculated may change.
Any changes to the calculation of overtime for casuals will come into effect from the first full pay period on or after 20 November 2020 for 96 of the affected modern awards. Changes to the remaining award (Aged Care Award 2010) won’t come into effect until 1 March 2021.
Under these clauses, overtime for casuals may be calculated in one of the following ways:
- In substitution for casual loading;
- In addition to casual loading (cumulative approach); or
- In addition to the sum of an employee’s minimum hourly rate plus casual loading (compounding approach).
To view further detail from Fair Work Australia, click here