The 8 Conditions Commonly Missed in the Building and Construction Award

Author Image Written by Garth Belic

The biggest pitfalls in the Building and Construction Award (without the jargon).

The Building and Construction Award remains one of the most complex and in-depth modern awards in the Australian employment landscape due to the unique travelling requirements and broad areas of specialisation.

You can also read our Ultimate Building and Construction Award (MA000020) Summary too as well as downloading our eBook which includes a bonus payroll processing checklist to ensure your business is compliant with all of the award requirements.

If you’re looking to gain a better understanding of the travel conditions in the Building & Construction award, we wrote an article that explains everything you need to know about travel conditions

Below are 8 conditions that are commonly missed by building and construction employers.

Period of continuous services with an employer

Redundancy/severance pay

Less than one year

1.75 hours per week of service

Over one year but less than two years

2.4 weeks’ pay


+


1.75 hours pay per completed week of service for service over one year. This is at a maximum of 4.8 weeks’ pay

Over two years but less than three years

4.8 weeks’ pay


+


1.6 hours pay per completed week of service for service over two years. This is at a maximum of 7 weeks’ pay

Over three years but less than four years

Seven weeks’ pay


+


0.73 hours pay per completed week of service for service over three years. This is at a maximum of 8 weeks’ pay

Over four years

Eight weeks’ pay

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Industry

Allowance (% of weekly rate)

General building and construction industry

6%

Civil construction industry

6%

Metal and engineering construction industry

6%

Residential building and construction industry

4.8%

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In these situations, there are conditions that are applicable when it’s no longer safe to continue work:

  1. In this situation, employers or the appropriate representatives must discuss and confirm (in less than 60 minutes) whether to continue work or not.

    If it’s deemed unsafe and risks the life and health of the employee, the employer is required to record the period between work ceasing and starting again.

  2. If emergency work is required (such as finishing a concrete pour), the employee must be paid at a rate of double time calculated to the next hour.

    If there is wet weather, wet weather gear must be adequately provided. If an employee’s clothes become wet due to work, the employee is able to go home to change to dry working clothes without loss of pay unless they have dry working clothes on hand.

  3. If an employee cannot work because of inclement weather, they will receive payment at the ordinary hourly rate to a maximum of 32 hours in any four week period.

    For employees that commenced employment during a four week period, refer to the below table on how much should be credited to the employee:

    Commenced Working

    Hours Credited

    First Week

    32 hours

    Second Week

    24 hours

    Third Week

    16 hours

    Fourth Week

    8 hours

  4. For part-time employees, they will be entitled to payments based on a pro-rata basis based on the number of agreed hours in the four week period. Below is the calculation that needs to be used:

    32 x (Number of hours agreed to worked for the four week period) ÷ 152

  5. If inclement weather occurs during overtime, employees are not entitled to any payment for stoppages in work.

  6. Any parts of the site that aren’t affected by inclement weather must continue to work even though other parts of the site have stopped work.

  7. An employer may transfer an employee to another location on a site if alternative work is available and it’s reasonable and safe to do so

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Check out our article explaining everything you need to know about travel conditions in the Building & Construction Award.

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Hours of work are between 7am to 6pm, Monday to Friday. Work carried outside of these hours will attract a penalty rate of 150% for the first two hours and 200% thereafter.

Ordinary working hours are 8 hours per day. For every hour, 0.4 hours are accrued towards a rostered day off (RDO). This means that an RDO of 7 ½ hours will be accrued every 19 days of work.

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Type of Shiftwork

Hours

Afternoon shift

Start after 3pm and finish before 3pm

Night shift

Start after 3pm and finish before 11pm

Early morning shift

Start after 11pm and finish before 4.30am

Morning shift

Start after 4.30am and finish before 6am

Early afternoon shift

Start after 11am and finish before 1pm

 

Below are the shiftwork hours of work for the civil construction sector:

Type of Shiftwork

Hours

Day Shift

Start after 6am and finish before 10am

Afternoon Shift

Start after 10am and finish before 8p,

Night Shift

Start after 8pm and finish before 6am

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Day workers must have an unpaid meal break of 30 mins within 5 hours while shiftworkers must have a meal break of 30 minutes that is to be counted as time worked.

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Shift

Penalty Rate
(% of ordinary hourly rate)

Comments

Overtime on Saturday

150% for the first two hours
200% thereafter

Paid a minimum of 3 hours

Overtime after midday Saturday

200%

Paid a minimum of 3 hours

Saturday following Good Friday

250%

Paid a minimum of 4 hours

Sunday

200%

Paid a minimum of 4 hours

Public Holidays

250%

Paid a minimum of 4 hours

Employees working overtime on Saturday and Sunday must be allowed 20 minutes of paid crib time after 4 hours of work.

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In our experience, given the complexity of the award, many of our clients have opted to adopt cloud payroll software as a solution to automate compliance and to help with labour cost control. Get in contact with us at Pay Cat if you’re interested in considering this option with the Building and Construction Award or any other modern award.

If you’re not ready yet, download our Ultimate Building and Construction Award Summary eBook and checklist which comprehensively covers everything you need to know including:

  • Types of employment
  • Inclement weather
  • Travelling time entitlements
  • Distant work payments
  • Industry allowances
  • Hours of work
  • Breaks
  • Superannuation
  • Overtime
  • Annual Leave

Alternatively, if you're interested in making the move to Cloud Payroll, book in a free demo with us to find out how you can automate your Modern Award compliance.

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