6 Conditions Employers Often Overlook in the Nursing Industry Modern Award

As an employer in the healthcare industry, staying compliant with the relevant awards is essential to avoid potential legal issues and maintain a positive relationship with your staff.

However, awards can be complex, and it's easy to miss certain conditions that could lead to non-compliance.

In this article, we'll explore six key conditions that employers often overlook in the award covering nurses. We'll provide practical advice on how to ensure you're meeting your obligations and supporting your nursing staff effectively.

Disclaimer: Please note that every effort has been made to ensure that the information provided in this guide is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal or tax advice. You should, where necessary, seek a second professional opinion for any legal or tax issues raised in your business affairs.

As an employer, you have an obligation to offer this conversion if the nurse meets the criteria, unless you have reasonable grounds not to do so.

To determine if a casual nurse is eligible for conversion, consider the following:

• Has the nurse worked a regular pattern of hours on an ongoing basis for at least 12 months?
• Can those hours continue as a full-time or part-time position without significant adjustment?

If the answer to both questions is yes, you must offer the nurse the opportunity to convert to permanent employment. Reasonable grounds for not offering conversion include:

• The nurse's role or hours will significantly change in the near future in a way that is incompatible with permanent employment
• Making the offer would breach recruitment laws or regulations

Remember, you must have facts to support your reasonable grounds, not just speculation.

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Nurses must have a minimum of:

• 8 hours off duty between rostered shifts, or
• 10 hours off duty for a changeover of rosters

If a nurse works overtime and doesn't have a 10-hour break before their next shift, they must be released from duty until they've had a 10-hour break, without loss of pay.

As an employer, you must get your rostering right and ensure your nurses are getting the breaks they're entitled to. Not only is it a legal requirement, but it's also important for their health and well-being.

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 Here's a breakdown of the overtime rates under the award:

Penalty rates apply for the following shifts:

Employers must ensure they are paying their nursing staff the correct overtime and penalty rates as outlined in the award. Failure to do so can result in underpayment claims and legal action.

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For non-shiftworkers, the annual leave loading is 17.5% of their ordinary pay, calculated on a maximum of 152 hours (4 weeks) of annual leave per year.

For shiftworkers, the annual leave loading is either 17.5% of ordinary pay or the weekend and shift penalties the employee would have received had they not been on leave, whichever is higher.

When calculating the leave loading for shiftworkers, consider the entire period of the leave request and compare the potential penalties with the 17.5% loading option. The higher of the two is what needs to be paid.

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If an employee has an excessive leave accrual, the employer and employee should try to agree on how to reduce or eliminate the excess leave.

If an agreement cannot be reached, the employer may direct the employee in writing to take one or more periods of paid annual leave, subject to certain conditions.

The employee must take the leave as directed but may request to take leave as if no direction had been given.

Alternatively, if an employee has had an excessive leave accrual for more than six months and hasn't been directed to take leave by their employer, they may give written notice to the employer requesting to take one or more paid annual leave, subject to certain conditions.

The employer must grant the leave requested.

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 Some of the main allowances include:

• On-call allowance: Paid to nurses required to be on call at their residence or another agreed location.
• Uniform allowance: Given to nurses who must wear a specific uniform instead of the employer providing and laundering it.
• Laundry allowance: For nurses whose uniforms are not laundered by the employer, to help cover the cost of cleaning.
• Meal allowance: Paid during overtime if nurses are not provided with a meal, allowing them to have extra meals when working beyond their regular hours.
• Travel allowance: Compensates nurses who are required to use their own vehicle for work-related travel.

Employers should ensure they are providing the appropriate allowances to their nursing staff as outlined in the award.

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• Offer casual conversion to eligible nurses who have worked a regular pattern of hours for 12 months or more, unless there are reasonable grounds not to do so.
• Ensure nurses have adequate breaks between rostered shifts, with a minimum of 8 hours off duty or 10 hours for a changeover of rosters.
• Pay nurses the correct overtime and penalty rates when they work beyond their ordinary hours or during shifts that fall outside the standard Monday to Friday daytime hours.
• Provide annual leave loading to nurses in addition to their ordinary pay during annual leave, with the loading amount depending on whether the nurse is a shiftworker or not.
• Manage excessive annual leave accruals by agreeing on how to reduce or eliminate the excess leave or by directing employees to take leave under certain conditions.
• Provide the appropriate allowances to nursing staff, such as on-call, uniform, laundry, meal, and travel allowances, as outlined in the award.

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Payroll software designed specifically for the healthcare industry and the relevant awards can automate award interpretation, pay rate updates, allowance calculations, and leave accrual management.

This can save you time and help you stay compliant with the award and other relevant legislation.

At Pay Cat, we offer payroll solutions tailored to the healthcare industry, making it easier for you to manage your payroll obligations and support your nursing staff effectively.

Book a demo today to learn more about how we can help you streamline your payroll processes and ensure award compliance.