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Casual Overtime: Is Your Award Affected?

Published November 19, 2020 (last updated on June 24, 2024) | Adam Wyatt - Content Writer

young male casual supermarket worker smiles with arms crossed

Most business owners know all too well about casual loading – the extra pay rate on top of the normal hourly rate that casuals get. The Fair Work Commission has recently made a decision affecting casual overtime for multiple awards. To be more specific, they’re setting out how to calculate a casual’s overtime payment. 

As with most things to do with the Australian workplace relations system, how casuals receive overtime is complicated and requires explaining. Luckily for you, this blog is here to show you the way. 

How to Calculate Overtime for Casuals 

The FWC has indicated that each award in review (list below) will have one of three methods applied in calculating overtime for casuals:  

Method 1   Method 2   Method 3  
The overtime (OT) entitlement is calculated on the permanent base rate (BR) and it excludes the casual loading (CL)  The overtime entitlement and the casual loading are applied to the permanent base rate   The overtime entitlement is calculated on the casual loaded rate of pay  
BR x OT   BR x (OT + CL)  (BR + CL) x OT  
E.g. 100% x 150%  E.g. 100% x (150% + 25%)  E.g. (100% +25%) x 150% 

That’s right – different Awards will have different methods of calculating a casual’s overtime. That means your business, if more than one Award applies to you, may have to calculate overtime for casuals using more than one method! 

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What Awards Are Affected? 

For some Awards the FWC have reached an agreement with industry groups on how they will pay their casuals, while others are still contested. Awards have either had their overtime rates  increased or decreased. Check below to see if your Award has been affected.

Awards That Have Received an Increase 

  • Black Coal Mining Industry Award

  • Broadcasting, Recorded Entertainment and Cinemas Award

  • Business Equipment Award

  • Concrete Products Award

  • Contract Call Centres Award

  • Electrical, Electronic and Communications Contracting Award

  • Health Professionals and Support Services Award

  • Labour Market Assistance Industry Award

  • Marine Tourism and Charter Vessels Award

  • Marine Towage Award

  • Ports, Harbours and Enclosed Water Vessels Award

  • Stevedoring Industry Award

  • Sugar Industry Award

  • Surveying Award

  • Telecommunications Services Award

  • Transport (Cash in Transit) Award

Awards That Have Received a Decrease

  • Aluminium Industry Award

  • Ambulance and Patient Transport Industry Award

  • Amusement, Events and Recreation Award

  • Local Government Industry Award

  • Passenger Vehicle Transportation Award

  • Salt Industry Award

  • Supported Employment Services Award

  • Travelling Shows Award

  • Water Industry Award

What is Casual Loading? 

Casual loading is additional payment made on top of a casual employee’s fixed hourly wage. The percentile rate of casual loading is determined by the relevant award or agreement covering that specific job. Casual loading is usually 25%, but the rate depends on the applicable Award.

What is Overtime? 

Overtime is work performed outside the ordinary hours listed in an award, agreement or as specified in the contract of employment. 

Under most Awards, overtime is defined as work performed beyond the maximum number of daily and/or weekly hours, outside the span of ordinary hours (ie. 7.00am – 7.00pm), or outside the agreed number of hours in the employment agreement. 

How Can I Get Help? 

Peninsula can assist you understand this change, how to calculate overtime for your casuals, and better understand the rights and entitlements of your casual employees. Not a client? Call us now for free, initial advice on 1300 651 415. 

Download our Casual Overtime Factsheet

The factsheet below has all the information you need to better understand this change.

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Call our team to receive free initial advice on casual overtime or any other workplace relations topic.

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