Overtime entitlements for Award covered employees

Both permanent and casual employees covered by the Building and Construction General On-Site Award 2020 (the Award) are entitled to overtime rates when working beyond ordinary hours. Under the Award, employees may work up to 8 ordinary hours per day (or 38 ordinary hours per week). Any hours worked in excess of these ordinary hours must be compensated at overtime rates, with time and a half (150%) paid for the first two hours, and double time (200%) for any additional hours worked thereafter.

In addition to overtime rates for hours worked beyond the ordinary hours, any work performed outside the designated spread of hours (for example 6:00 am to 6:00 pm) must also be paid at penalty rates. Similar to overtime, the first two hours outside the spread are compensated at time and a half (150%), with double time (200%) paid for any hours worked after that.

Overtime and weekend work for casual employees

For casual employees, the calculation of overtime is slightly different. Overtime for casuals is based on the full-time ordinary rate, to avoid the compounding of casual loading. Therefore for casual employees, overtime is calculated at time and three-quarters (175%) for the first two hours and double time and a quarter (225%) for additional hours worked beyond that. Casual loading of 25% is not compounded on overtime rates.

Work performed by casual employees on a Saturday is paid at time and three-quarters (175%) for the first two hours, and double time and a quarter (225%) for any hours thereafter. Additionally, all hours worked after 12 noon on a Saturday are paid at double time and a quarter (225%). A minimum engagement of three hours applies for Saturday work. For work performed on Sundays, casual employees must be paid at double time and a quarter (225%), with a minimum engagement of four hours.

Overtime Allowances 

In addition to overtime rates, all employees (full time, part time and casual) are also entitled to certain allowances when working overtime:

• If an employee is required to work at least 1.5 hours of overtime, they are entitled to a meal allowance of $18.51.
• If the employee works 2 hours of overtime, they are entitled to a 20-minute crib break, paid at double time, in addition to the meal allowance.
• On weekends, a 20-minute crib break is provided after 4 hours of work, paid at the employee’s ordinary rate. If they work more than 4 hours on a weekend, they must be given a 30-minute paid crib break at their ordinary hourly rate.

Clarification on Casual Pay Rates

Members should note that casual employees’ pay is based on the ordinary hourly rate for full-time or part-time employees under the award. The ordinary hourly rate includes the base pay, industry allowances, and any applicable all-purpose allowances, such as tool allowance. Casual employees receive an additional 25% casual loading on top of the ordinary hourly rate. However, this casual loading is not included in the calculation of overtime rates.

Members are reminded that paying above-Award or flat rates may not necessarily offset overtime rates and associated allowances. By understanding these overtime and penalty rate provisions, employers can ensure compliance with the Award and properly compensate their employees for the hours worked beyond ordinary time.

Need more?

If you have questions about calculating overtime or other wage entitlements for your employees, or if you’re unsure if your current wage calculations are correct, the Workplace Relations and Legal Team is available to help. Please contact us at (02) 6175 5900 for assistance.