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ENTITLEMENT TO OVERTIME FOR PART-TIME EMPLOYEES AND CALCULATIONS

Under both the Clerks – Private Sector Award 2020 and the Real Estate Industry Award 2020, part-time employees may be entitled to overtime payments for hours worked in excess of their ordinary hours of work. The method for calculating overtime payments for part-time employees depends on whether they are covered by the hourly rate of pay or the annual salary provisions of the Award.

Hourly-Rate Part-Time Employees (Clerks - Private Sector Award 2020)

For part-time employees who are paid an hourly rate of pay, overtime is paid at the rate of time and a half for the first three hours worked on any day, and double time thereafter. For work performed on a Saturday, overtime is paid at the rate of time and a half for the first two hours, and double time thereafter. For work performed on a Sunday, overtime is paid at the rate of double time for all hours worked. These overtime rates apply to all hours worked in excess of the employee’s ordinary hours of work.

Hourly-Rate Part-Time Employees (Real Estate Industry Award 2020)

For part-time employees who are paid an hourly rate of pay, overtime is paid at the rate of time and a half for the first two hours worked on any day that is not a Sunday, and double time thereafter. For work performed on a Sunday, overtime is paid at double time for the first two hours, and double time and a half thereafter. These overtime rates apply to all hours worked in excess of the employee’s ordinary hours of work.

Annual Salary Part-Time Employees (Both Awards)

For part-time employees who are paid an annual salary, overtime is calculated differently. Overtime is calculated on a pro-rata basis, based on the employee’s ordinary hours of work. The employee is entitled to be paid an additional amount equal to 1/38th of their weekly salary for each hour worked in excess of their ordinary hours of work.

In relation to those part-time employees engaged under the Clerks-Private Sector Award 2020, the employer must keep a record of:

  1. the annualised wage that is payable;
  2. which of the provisions of the Award will be satisfied by payment of the annualised wage (i.e. overtime);
  3. the method by which the annualised wage has been calculated, including specification of each separate component of the annualised wage and any overtime or penalty assumptions used in the calculation; and
  4. the outer limit number of ordinary hours which would attract the payment of a penalty rate under the award and the outer limit number of overtime hours which the employee may be required to work in a pay period or roster cycle without being entitled to an amount in excess of the annualised wage.

Entitlement to Overtime

It is important to note that the entitlement to overtime for part-time employees may be subject to certain conditions, such as the requirement for the overtime to be authorised by the employer or for the employee to have worked a minimum number of hours in the week.

It is important to note that the entitlement to overtime for part-time employees may be subject to certain conditions, such as the requirement for the overtime to be authorised by the employer or for the employee to have worked a minimum number of hours in the week.

Please contact REEFWA on (08) 9365 7510 or ReefWA@cciwa.com if you require assistance in managing overtime arrangements in your workplace.

Written By Justin Lilleyman – Principal Consultant – Workplace Relations

CCIWA, Business Law WA and REEFWA has taken all reasonable care in preparing this document. The contents of this document do not constitute legal advice and should not be relied upon as such. Specific advice for your situation should be sought from CCIWA, Business Law WA or a professional adviser before any action is taken. Neither REEFWA, CCIWA nor Business Law WA accept responsibility for any claim that arises from any person acting or refraining from acting on the information contained in this document.

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