The Ultimate Nurses Award 2020 Summary: Simplifying Compliance for Healthcare Businesses [2024 Updated]

• Hospitals
• Medical practices
• Disability services
• Drug and alcohol services
• Medical centres
• Hospices
• Mental health services

The award covers different types of nurses, like:

• Nursing assistants
• Enrolled nurses
• Registered nurses
• Nurse practitioners

The award also applies to on-hire employees and group training employees working in the health industry. So even if you’re employed by a labour-hire company or a group training organisation, you still get the minimum conditions in the Nurses Award if you’re placed with a health industry client.

But there are some exceptions.

The award doesn’t cover nurses employed:

• In high schools or primary schools
• By the Australian Government or a State or Territory Government (except in Victoria)
• By community service providers in Western Australia
• In the Northern Territory, by health and community service providers

So, essentially, if you’re an employer or employee in the nursing sector and don’t fall into the four categories listed above, the Nurses Award 2020 probably applies to you.

Keep reading to find out what this means for your employment rights and responsibilities.

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Let's break down what each one means: 

Full-time employment

• Full-time nurses work an average of 38 hours per week.
• Their hours of work should be arranged to provide an accrued day off (ADO) on either a 19-day or 4-week cycle. An ADO is a paid day off that a nurse earns by working extra hours each day over a set period. For example, a nurse might work an extra 24 minutes per day over 19 days to earn a full day off on the 20th day.
  
  

Part-time employment

• Part-time nurses work less than an average of 38 hours per week.
• Before starting employment, the employer and part-time nurse must agree in writing on a regular pattern of work, including the number of hours to be worked each week, the days of the week the nurse will work, and the starting and finishing times each day.
• Any agreed changes to the regular pattern of work must be put in writing.
  
  

Casual Employment / Casual Loading

• Casual nurses are paid by the hour and receive a casual loading of 25% on top of the applicable hourly rate. This loading is paid because casual nurses don't get other entitlements like paid annual leave.
• The minimum engagement period for a casual nurse is 2 hours. This means that a casual nurse must be paid for at least 2 hours of work, even if they work less than that.
  
  

Casual Conversion 

As an employer, you may need to offer casual conversion (i.e., the option to become a permanent employee) to eligible casual nurses who have worked for you for 12 months or more. 

To be eligible for casual conversion, a casual nurse must have worked a regular pattern of hours on an ongoing basis for at least 12 months, and those hours must be able to continue as a full-time or part-time position without significant adjustment. 

If a casual nurse meets these criteria, you must offer them the opportunity to convert to permanent employment unless you have reasonable grounds not to do so.

The main reasonable grounds for not offering a casual employee conversion to permanent are if their role or hours will significantly change in the near future in a way that is incompatible with permanent employment or if making the offer would breach recruitment laws or regulations.

The employer must have facts to support their reasonable grounds, not just speculation.

The Nurses Award 2020 sets out the following rules:

Ordinary hours

• For day workers, ordinary hours are worked between 6:00 am and 6:00 pm, Monday to Friday.
• For shiftworkers, ordinary hours are worked at any time of the day, on any day of the week. A shiftworker is a nurse who works rotating shifts (like morning, afternoon, and night shifts) or permanent night shifts.
• The term 'shift length' refers to the maximum duration of a work shift, which under the Nurses Award 2020 should not exceed 10 hours, exclusive of meal breaks.
  
  

Maximum hours

• The maximum number of ordinary hours that can be worked per shift is 10 hours (excluding meal breaks).
• The maximum number of ordinary hours that can be worked per week is 38 hours, averaged over a 4-week period.
  
  

Breaks between shifts

• Nurses must have a minimum of 8 hours off duty between rostered shifts, or 10 hours for a changeover of rosters.
• If a nurse works overtime and they don't have a 10-hour break before their next shift, they must be released from duty until they have had a 10-hour break, without loss of pay.
  
  

Rosters

• Rosters must be displayed at least two weeks before the start date of the first working period in the roster.
• Rosters can be changed at any time to enable the functions of the hospital or facility to be carried out when another nurse is absent from duty due to illness or an emergency. However, a nurse must be told about a change in roster at least 24 hours before the change is to take place.

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. Well-rested nurses lead to better patient outcomes and a more productive workplace!

According to the award, nurses are entitled to a meal break lasting between 30 and 60 minutes after working no more than 5 hours. This meal break is unpaid and does not count as time worked.

However, if a nurse must remain on call during their meal break, the time will be paid at the appropriate rate and considered part of their ordinary working hours.

In addition to the meal break, nurses are allowed a paid 10-minute tea break for every 4 hours worked. The timing of this break should be agreed upon between the nurse and the employer. 

If a nurse is required to work during their meal break, they will receive overtime pay for the time worked until they can take an uninterrupted break, even if they manage to get a meal break later in the shift.

As outlined in the Nurses Award 2020, a 'pay point' refers to specific levels within the wage structure that correspond to a nurse's qualifications and experience. These wages are updated annually, typically at the start of each financial year.

For the most current pay rates for each classification, you can access the pay rate tables here.

Progression to the next pay point is determined by the accumulation of experience, measured by hours worked. It is important for nurses to advocate for higher pay based on their qualifications and responsibilities beyond the usual EN role.

For more information on the classification of nurses, download our eBook here: CLICK.

These payments are designed to compensate employees for specific aspects of their work or to cover work-related expenses they may incur. 

Nurses are also entitled to various allowances depending on their roles and duties. The table below outlines the primary allowances and what each one covers:

Search our database for all relevant allowances to your modern award.

The superannuation guarantee is the minimum contribution employers are legally required to pay into an employee's superannuation fund.

The current superannuation rate is 11.5% of an employee's ordinary time earnings. This rate will see another increase next year, continuing a trend of annual adjustments until it reaches 12%. 

Paid overtime refers to the additional payment received for hours worked beyond the ordinary schedule, with specific regulations detailing the pay rates and conditions for various types of employees, including casual and part-time workers.

For casual employees, overtime is any work performed beyond 38 hours per week or 76 hours per fortnight. When a nurse works overtime, they are entitled to be paid at a higher rate, which varies depending on the day and time the overtime is worked.

Here's a breakdown of the overtime rates under the Nurses Award:

• Monday to Saturday (first 2 hours): 150% of the ordinary hourly rate
• Monday to Saturday (after 2 hours): 200% of the ordinary hourly rate
• Sunday: 200% of the ordinary hourly rate
• Public holidays: 250% of the ordinary hourly rate
  
  

Time Off in Lieu

It's worth noting that under certain circumstances, nurses may be entitled to time off in lieu of overtime payment. The amount of time in lieu, in this case, will equate to each hour of overtime worked. For example, if a nurse works 3 hours of overtime, they are entitled to 3 hours of time off in lieu. 

However, when a penalty rate may apply (see discussion below), the amount of time off in lieu is calculated based on the penalty rates. 

For example, if a nurse works 2 hours of overtime that would have been paid at 1.5 times their ordinary rate, they would be entitled to 3 hours of time off in lieu (2 hours worked x 1.5). If they work an additional 1 hour of overtime that would have been paid at 2 times their ordinary rate, they would be entitled to an additional 2 hours of time off in lieu (1 hour worked x 2). 

In this case, the total time off in lieu for the 3 hours of overtime worked would be 5 hours (3 hours + 2 hours).

This arrangement must be agreed upon between the employer and employee and should be documented in writing.

These penalty rates are designed to compensate nurses for working shifts that may be less desirable or disruptive to their personal lives.

Penalty rates under the Nurses Award are as follows:

• Afternoon shift (commencing between 10:00 am and 1:00 pm): 112.5% of the ordinary hourly rate
• Night shift (commencing between 1:00 pm and 4:00 pm): 115% of the ordinary hourly rate
• Permanent night shift (commencing between 4:00 pm and 4:00 am): 130% of the ordinary hourly rate
• Saturday: 150% of the ordinary hourly rate
• Sunday: 175% of the ordinary hourly rate
• Public holidays: 200% of the ordinary hourly rate

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.

These provisions are crucial in supporting employees, particularly in situations related to domestic violence.

Enterprise agreements for nurses often include beneficial entitlements such as domestic violence leave.

These agreements not only address wages and classification but also outline conditions, including essential leave options that support employees facing domestic violence.

Annual Leave

One of the most important leave entitlements for nurses is annual leave. Full-time and part-time nurses are entitled to four weeks of paid annual leave for each year of service. This leave accrues progressively throughout the year and can be taken as soon as it accrues, subject to the employer's approval. 

Nurses who work certain shift arrangements, such as those regularly working Sundays or public holidays, may be entitled to an additional week of annual leave.

In addition to their ordinary pay, nurses are entitled to annual leave loading during their annual leave period. Annual leave loading is an extra payment that is made on top of the employee's base rate of pay during annual leave.

For nurses who are not 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 example, if a nurse's ordinary weekly pay is $1,000, their annual leave loading would be $175 per week of annual leave taken.

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. 

So, if the nurse normally works on a Saturday and receives 150% of their ordinary pay, the leave loading would be 50% instead of 17.5% as the penalty rate is higher.

When working out which option is higher, look at the entire period of the leave request for potential penalties, and compare that with the option of giving a 17.5% loading. The higher of the two is what needs to be paid.

Excessive Leave Accruals

An excessive leave accrual is defined as more than ten weeks of paid annual leave for a non-shiftworker or 12 weeks for a shiftworker.

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.

Annual Leave in Advance / Cashing Out Annual Leave / Annual Leave Loading

Employers and employees may also agree in writing for the employee to take annual leave in advance before they have accrued the entitlement, or to cash out a particular amount of accrued annual leave. But, there are specific rules around these arrangements to ensure employees still have sufficient leave available.

Personal/ Carer’s Leave

Personal/carer's leave is another key entitlement for nurses. This leave allows nurses to take time off when they are ill or injured or when they need to care for a member of their immediate family or household who is sick or injured. Full-time nurses are entitled to 10 days of paid personal/carer's leave per year, while part-time nurses receive a pro-rata entitlement based on their hours worked. 

Other Types of Leave

• In addition to annual leave and personal/carer's leave, nurses may also be entitled to other types of leave, such as:
• Compassionate leave: 2 days of paid leave per occasion to attend to a seriously ill or deceased family member.
• Parental leave: Up to 12 months of unpaid leave for the birth or adoption of a child, with the right to request an additional 12 months.
• Long service leave: Varies by state and territory but generally allows for an extended period of paid leave after a significant period of continuous service with one employer.

The public holidays recognised under the Nurses Award are:

• New Year's Day
• Australia Day
• Good Friday
• Easter Monday
• Anzac Day
• Queen's Birthday
• Labour Day
• Christmas Day
• Boxing Day

Any additional public holidays declared by state or territory governments will also be recognised under the award.

Employers must ensure they are providing their nursing staff with the appropriate leave entitlements and public holiday provisions as outlined in the Nurses Award and the NES. Failing to do so can lead to legal consequences and damage to the employer-employee relationship.

• The Nurses Award 2020 sets out the minimum terms and conditions of employment for nurses across Australia, including pay rates, allowances, hours of work, leave entitlements, and more.
• The award covers a wide range of nurses, from nursing assistants to registered nurses and nurse practitioners, working in various healthcare settings such as hospitals, aged care facilities, and community health services.
• Nurses can be employed on a full-time, part-time, or casual basis, each with its own specific conditions and entitlements.
• The award specifies the maximum ordinary hours of work for nurses, as well as requirements for rest breaks and meal breaks during shifts.
• Nurses are entitled to various allowances, such as on-call allowances, uniform and laundry allowances, meal allowances during overtime, and travel allowances, to compensate for specific aspects of their work or expenses incurred.
• Overtime rates apply when nurses work beyond their ordinary hours, while penalty rates apply for working shifts that fall outside the standard Monday to Friday daytime hours.
• Nurses are entitled to paid annual leave, personal/carer’s leave, compassionate leave, and other types of leave as specified in the award and the National Employment Standards.
• Employers must carefully manage excessive annual leave accruals and may direct employees to take leave or grant employee requests for leave under certain conditions.
• Nurses are entitled to be absent from work on prescribed public holidays and must be paid penalty rates if required to work on these days.
• The midwifery federation plays a crucial role in setting minimum wages and conditions for practice nurses, providing support and guidance to its members about their classification within the Nurses Award 2020.

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Making sure you're compliant with the award is essential to avoid underpayment claims and legal issues, but handling this manually takes a lot of time and can lead to mistakes.

Automated payroll software can help make award compliance much easier. By automating award interpretation and calculation, payroll software can help you stay compliant with the Nurses Award and other relevant awards and legislation.

Features like automatic pay rate updates, allowance calculations, and leave accrual management can save you time and reduce the chance of errors.

If you want to make your payroll processes simpler and more efficient while ensuring award compliance, it's worth looking into automated payroll software options. 

At Pay Cat, we offer solutions designed specifically for the healthcare industry and the Nurses Award, making it easier to manage your payroll obligations.