In The News: Casual Employees in Australia
Photo Credit: Bill Oxford via Unsplash
Does your business employ staff on a casual basis? If the answer is yes, it is crucial you are abreast of the latest changes for employers regarding calculating overtime rates for casual employees, which were handed down by the Fair Work Commission last week.
The ruling provides that from 20 November 2020 overtime rates for casual employees engaged under 96 awards must be calculated one of the following three ways, depending on their industry and relevant award:
1. in substitution for casual loading; or
2. in addition to casual loading (the "cumulative basis"); or
3. in addition to the employee's minimum hourly rate plus casual loading (the "compounding basis").
Many employer representatives have stated that they are opposed to the third option, which they saw as 'paying a penalty on a penalty' according to Christa Lenard from Australia's largest specialist workplace firm, Kingston Reid.
Lenard urged HR professionals to check the award relevant to their employees and ensure they are factored into the better-off-overall-test (BOOT) considerations during their next bargaining round with their staff.
Further to this, another case overseen by the FWC saw a case concerning a casual worker, who in September was denied unfair dismissal protection for not completing the minimum employment period, overturned.
The Commission last week found that the casual work she had completed was, in fact, regular (evidenced by timesheet records) and systematic (under an established rostering system), and allowed her to claim for unfair dismissal to proceed.
With the above changes, employers should 'assess whether [employees] are casual or whether or not you're better off employing (staff) under a permanent part-time arrangement', Lenard says.
If you employ casual workers and are unsure of your rights and responsibilities under the Fair Work Act, Infinity HR can help.
Contact our team today on info@infinityhr.com.au or call 0400 489 743.
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