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Changes to Overtime and Penalty Rates in the Professional Employees Award

Changes to Overtime and Penalty Rates in the Professional Employees Award

Are you covered by the Professional Employees Award? If so, there are important changes coming your way regarding overtime and penalty rates. Here’s what you need to know:

Who’s Affected

If you’re a professional employee under the Professional Employees Award, these changes will affect you. If you’re uncertain about whether this award applies to you, you can use “Find my Award” to check. The changes will become effective from the first full pay period starting on or after 16 September 2023.

Overview of the Changes

Overtime

Starting from the first full pay period on or after 16 September 2023, you’ll be entitled to overtime pay if you work more than:

1. 38 hours per week, or
2. An average of 38 hours per week.

Your ordinary hours can be averaged over a 13-week period. In some cases, your employer may request or require you to work overtime, provided that the additional hours are reasonable. Factors like your salary and position will be considered when determining the reasonableness of overtime. Furthermore, employers must pay overtime for any additional call-backs or remote work performed using electronic devices such as laptops or phones.

Penalty Rates

You’ll also be entitled to penalty rates for working at specific times and on particular days. We’ve outlined the details below, and these changes will also apply from 16 September 2023.

Payment for Overtime

When working overtime, employees must be paid at least their minimum hourly rate. If you work overtime during times that attract penalty rates, you’re entitled to the higher rate. Employers and employees can also agree for employees to take time off instead of receiving overtime pay, but this agreement must be recorded using the template provided in Schedule F of the award (please note that this template will be available from 16 September 2023 once a new version of the award is published).

For more information, you can refer to the Overtime pay page.

Payment of Penalty Rates

Eligible employees will now receive the following penalty rates, which will be applied to their minimum hourly rate under the award:

Employees Who Aren’t Entitled to Overtime and Penalty Rates

If your annual salary is more than 25% above the minimum award wage, you won’t be entitled to overtime or penalty rates.

Record-Keeping Requirements

For Employees

If you perform remote work outside of your ordinary hours, you must keep a timesheet or another record that specifies the start and end times of your remote work, along with a description of the work performed. This record should be provided to your employer within a reasonable time after completing the work.

For Employers

Employers are required to keep records of any hours worked by an employee that:

– Exceed 38 hours per week.
– Occur before 6 am or after 10 pm on Monday to Saturday.
– Take place on a Sunday or public holiday.

However, this record-keeping requirement doesn’t apply to employees whose annual salary is 25% more than the relevant minimum annual wage under clause 14.

Stay informed about these changes and ensure compliance with the new regulations.

*Please note that this information is accurate as of 12 September 2023, and the award may be subject to further updates.*

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