The Clerks Private Sector Award (MA000002), also known as the clerical award, is one of the unique modern awards that apply across a broad range of industries and sectors given the nature of clerical work.
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- Maximum Number of Ordinary Hours
- Minimum Hours of Work Per Shift
- Overtime Applies Beyond Ordinary Hours
- Breaks Must be Taken Within First 5 Hours
- 10 Consecutive Hours of Rest After Overtime Shifts
- Sunday is Not a Day Considered For Ordinary Hours of Work
- Shiftworkers Have Penalty Loading on their Hourly Rate
- Key Takeaways
Suppose you have employees who are engaged in work such as typing, recording, attending a reception desk, receiving or making calls. In that case, chances are, you have employees who fall under the Clerks Private Sector Award.
This usually means that business owners and managers alike need to be made aware of some of the conditions and coverage that fall within the award.
With a recent focus on payroll compliance from Fair Work Australia and media coverage of businesses guilty of wage theft, it’s more important now than ever that companies understand what’s expected of their obligations regarding pay rates and employment conditions.
Despite being able to review the award on the Fair Work website, it isn’t easy to understand. It resembles a cryptic legislative document rather than an easy-to-read guide for business owners and managers.
This article will cover the least well-known conditions that you should know if you have any employees who fall under the Clerks Private Sector Award.
You can also check out our Ultimate Clerks Private Sector Award Summary (MA000002) to learn everything you need about this award.
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.
1. Maximum Number of Ordinary Hours
The ordinary weekly hours for a Clerks Private Sector Award employee are typically 38 hours per week.
For example, an employee who’s rostered to work from 8 a.m. to 6.30 p.m., with a 30-minute unpaid meal break during the shift, is then needed to work an additional 2 hours. These 2 hours are to be paid at overtime penalty rates.
2. Minimum Hours of Work Per Shift
Casual employees, who often have irregular work hours, must also be paid at least 3 hours per shift regardless of whether they work less than this.
For example, an employee who only physically works 2 hours on a shift must be paid 3 hours’ worth of wages regardless of this.
3. Overtime Applies Beyond Ordinary Hours
This is a common condition in the Clerks Private Sector Award that catches a lot of businesses off-guard.
Accurate tracking overtime hours worked is crucial to ensure employees are compensated correctly according to the award.
Employees are guaranteed specific shifts each week, whether part-time or full-time, and will be paid overtime if they work outside of these hours.
For example, if a part-time employee works on Wednesday and Thursday between 9 a.m. and 5 p.m., starting earlier at 8 a.m. and finishing at 4 p.m., they will incur an additional hour of overtime even though they’ve worked the same number of hours.
This scenario can only be overridden by a written agreement between the part-time employee and the employer to adjust their shift pattern temporarily.
4. Breaks Must be Taken Within First 5 Hours
If your employee works through this time, the employer must pay 200% of their minimum hourly rate from the time the meal break would have started until a break is allowed or when the shift finishes.
5. 10 Consecutive Hours of Rest After Overtime Shifts
Overtime hours are any hours worked beyond the standard 38-hour workweek or outside the ordinary work hours.
If it’s not possible, then the following rules apply:
- They must be paid a 200% penalty rate based on their minimum hourly rate and
- They must be given at least ten consecutive hours afterwards, and
- They must not lose any pay for any ordinary hours or shifts they would have worked because the employer needs to give the minimum ten consecutive hours of rest.
6. Sunday is Not a Day Considered For Ordinary Hours of Work
The Clerks Private Sector Award has set out the following as ordinary hours of work:
- Monday to Friday: 7am to 7pm
- Saturday: 7am to 12.30pm
Employees are expected to work ordinary hours within the designated time frames in the award.
Outside of this, overtime rates apply.
For example, suppose you’re a medical centre open seven days a week. In that case, employees such as receptionists will be paid overtime rates for working the second half of Saturday, Sunday, and public holidays.
7. Shiftworkers Have Penalty Loading on their Hourly Rate
For businesses that operate and have clerical employees working outside of the ordinary hours (see 6. Sunday is Not a Day Considered For Ordinary Hour of Work) set out in the Clerks Private Sector Award, they are considered shiftworkers.
Penalty rates apply when an employee's ordinary shift falls outside the designated hours of work.
Clerks Private Sector Award shift workers are entitled to a penalty rate that starts from 15% on top of their minimum hourly rate. Below are some ‘abnormal’ shifts that constitute shiftwork and their penalty rates:
Shift Type
Penalty Rate (% of Minimum Hourly Rate)
|
Shift Type |
Premium |
|
Afternoon shift - a shift that finishes between 7pm and midnight |
115% |
|
Afternoon shift - a shift that finishes between 7pm and midnight |
115% |
|
Permanent Night Shift - A shift that doesn't rotate with another shift or day for four consecutive weeks or longer |
130% |
|
Saturday, Sunday or Public Holiday - All day |
150% |
If your employee works any of these shifts, you must ensure that these penalty rates are paid.
Key Takeaways
Additionally, employees are entitled to community service leave under the National Employment Standards (NES) for activities that serve the community.
If you’ve identified that you have employees that fall under the Clerks Private Sector Award, it’s highly recommended that you review whether you have been complying with all conditions of the award both historically and in the future.
Given the complexity of the award, many of our clients have opted to adopt our cloud payroll software as a solution to automate compliance and help with labour cost control.
If you’re not ready yet, download our Ultimate Clerks Private Sector Award (MA000002) Summary eBook and checklist, which comprehensively covers everything you need to know, including:
- Types of employment
- Shiftwork coverage
- Hours of work
- Breaks
- Superannuation
- Allowances
- Overtime
- Annual Leave
Contact us at Pay Cat if you want to consider this option with the Clerks Private Sector Award or any other modern award, or book a demo to see how our software can simplify the process for you.
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