How is casual loading calculated

This decision is concerned with the identification and resolution of potential ambiguities in a number of modern awards in relation to the overtime entitlements of casual employees as part of the 4 yearly review of modern awards.

In other words, the purpose of the review was to resolve ambiguities already existing in the subject awards. Unless there is a clear indication to the contrary in relevant clauses of an Award or Enterprise Agreement, there is a significant risk that the Compounding Approach may be used to calculate overtime payments for casual employees.

Given that the task the Full Bench undertook in the 4 yearly review was to cure anomalies, there is also a risk that the compounding approach may be applied retrospectively to enterprise agreements that do not make it clear that the casual loading is excluded from the base rate of pay when calculating overtime payments. Disclaimer: This summary is a guide only and is not legal advice.

For more information on legislative obligations, please call NECA member services on or email memberservices neca. Ph: E: memberservices neca. Calculating Overtime for Casual Employees. Member Login. Search form Search. Calculating Overtime for Casual Employees Introduction On 30 October , a Full Bench of the FWC published a decision 4 yearly review of modern awards — common issue — overtime for casuals — final determinations.

Enterprise Agreements Section 57 of the Fair Work Act makes it clear that an Award does not apply to an Employee or Employer when an enterprise agreement applies to that employee and employer. The Yalourn Decision was concerned with the interpretation of an enterprise agreement. At [40 ] of the Yallourn Decision the Full Bench noted clause 5.

Can the Determination to adopt the Compounding Approach be applied retrospectively? The advantage of using multipliers is that they will work regardless of the hourly rate and do not need to be updated when the hourly rate is changed - it will all happen automatically! This system also shows the award rate and how the award rate is then converted to the relevant rate for the loadings etc on a consistent and reliable basis. Browse Community.

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We take your privacy seriously and by subscribing to our newsletter you agree to the terms of our Privacy Policy available below. Sign out. Managing people Calculating penalty rates for casuals How do you calculate penalty rates if casual staff work overtime? Should the penalties be calculated at the ordinary hourly rate or the casual hourly rate including the casual pay loading? Find out more about penalty rates here.

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