Recent changes to the Retail Award have introduced significant updates affecting the rostering and overtime entitlements for part-time employees. These adjustments, made by the Fair Work Commission, came into effect from the first full pay period starting on or after 5 July 2024. These changes aim to provide greater clarity and fairness in how part-time employees’ working hours and overtime are managed.
What Has Changed?
The Fair Work Commission (the Commission) has specifically revised the wording of the Retail Award in two key areas:
1. Rosters
2. Overtime (for part-time employees only)
These changes are intended to better align the working conditions of part-time employees with fair labor practices while ensuring that employers adhere to updated guidelines.
Rostering Adjustments
Under the new provisions, the Retail Award now includes specific changes to how rosters are structured over a two-week cycle for part-time employees. The revised rules state that if an employee works six days in one week of a two-week roster cycle, they can only be rostered to work ordinary hours on a maximum of four days in the other week of that cycle.
This adjustment allows for more flexibility in scheduling. For instance, an employee can now be scheduled to work up to four days in the first week and six days in the second week, whereas previously, the four-day week had to follow the six-day week. Importantly, these changes do not alter the total number of days an employee can work within a fortnight, which remains consistent with previous rules. This update aims to balance the workload more evenly across the roster cycle, offering employees a more predictable work-life balance.
Overtime for Part-Time Employees
A significant change has also been made regarding overtime entitlements for part-time employees. Now, part-time employees are eligible for overtime rates if they work outside the designated spread of ordinary hours as defined by the Retail Award.
The “spread of ordinary hours” refers to the specific time frames during which standard working hours can be scheduled without incurring overtime. While the spread of ordinary hours under the award itself has not changed, the new rules ensure that any hours worked outside this spread will automatically qualify for overtime pay. This change provides added protection for part-time employees, ensuring they are fairly compensated for any extra hours worked beyond their regular schedule.
Employers should be aware of these changes and ensure that their rostering and payroll systems are updated to reflect the new overtime entitlements. It is crucial for both employers and employees to understand these changes to avoid potential disputes and to ensure compliance with the updated Retail Award.
Additional Resources
For more detailed information about the spread of ordinary hours and how overtime is applied, you can visit the Fair Work Commission’s website. By selecting your specific industry and sub-industry, you can access tailored information on when overtime applies, ensuring that you are fully informed about your rights and obligations under the updated Retail Award.
In response to these changes, the Fair Work Commission has also updated the Pay and Conditions Tool, making it easier for employers and employees to calculate entitlements based on the new award conditions.
Employers are encouraged to review these changes closely and make the necessary adjustments to their rostering practices and payroll systems. Employees should also familiarize themselves with these updates to understand how their working conditions and pay might be affected.
If you have any questions or require further clarification, it is advisable to consult with a workplace relations expert or contact the Fair Work Commission directly. Staying informed and proactive about these changes will help ensure a smooth transition and continued compliance with the Fair Work Act.
