A position’s work responsibilities and duties should be outlined in its respective Position Description; every effort should be taken by Managers to ensure work functions and tasks are scheduled in a timely manner and can be performed within a working day and/or week.

However, from time to time, additional hours may be required in order for employees to complete tasks for clients or meet a deadline. In this case, Managers may request employees work hours in addition to their regular work hours.

To ensure workloads are managed effectively and there is no confusion in relation to additional hours worked, all overtime is best to be discussed and approved. Subsequently, you could find that some work tasks may need to be reallocated to other team members in order to meet deadlines.

Salaried employees

Salaries generally include an amount to cover a reasonable amount of overtime each week, for example, two or so hours per week, however if the overtime becomes regular and/or excessive, your employees should be compensated. Similarly, your salaried employees’ regular and ordinary working schedule may include working every second Saturday (and their annual salary reflects the same), but you may need them to work an additional Saturday from time to time.

If excessive, compensation for overtime and penalty rates may be provided in the way of time off in lieu, which should be negotiated and taken at a mutually convenient time within a reasonable timeframe, for example, four weeks. In addition, Managers may need to review the position’s workload or the employee’s work capability to complete the tasks within the required timeframes. To eliminate the possibility of an employee saying they have worked excessive hours over a period of time and wanting time off, a time-keeping system should be implemented, including recording the amount of overtime worked. If this is not likely within your business, then a policy stating all overtime must be approved may suffice.

Award wages employees – Overtime

Permanent Employees

Permanent full time and part time Award wages employees are entitled to the overtime penalty rate applicable under the relevant Award or industrial instrument. Alternatively, if allowable by the Award / industrial instrument, employees may agree to take time off in lieu; which is usually at the ordinary time rate – an hour off for each hour worked. Subsequently, where such agreed time off in lieu has not been taken within four weeks of accrual, if requested by the employee, you must pay them at the overtime rate for any overtime worked.