- To be Reported as Overtime
- Cannot be Reported as Overtime
Overtime is when an employee works extra time. It can include work done:
- Beyond their ordinary hours of work
- Outside the agreed number of hours
- Outside the spread of ordinary hours (the times of the day ordinary hours can be worked)
Payments for work performed during hours outside an employee’s ordinary hours of work are not ordinary time earnings.
To be Reported as Overtime
Industrial instruments specify a range of payments that meet the above definition of overtime that are not called “overtime” but are, in fact, overtime, as follows:
- Overtime – defined as above, is not ordinary time earnings and must be reported as Overtime.
- TOIL - Some awards and registered agreements allow an employee to take paid time off during the ordinary span of hours instead of being paid overtime pay: time off in lieu (TOIL) - LIEU in CloudPayroll. If the absence is not taken, the employee may request that the accrued time be paid out at the overtime rates. The cash out of TOIL in service should be reported as Overtime. TOIL absence taken is other paid leave as Other Paid Leave and unused TOIL paid out on termination is an ETP as per section 2.14 Employment Termination Payments (ETPs).
- Call Back – call backs or recall allowances are when an employee has left the workplace or completed their ordinary time without any prearranged agreement to work overtime but is called back to work overtime. They typically receive a minimum number of hours payment at overtime rates, is not ordinary time earnings and should be reported as Overtime. For example, as per clause 33.4 of the MA000073: Food, Beverage and Tobacco Manufacturing Award 2010.
- On Call - on call, stand-by or availability allowances to remain in readiness for a return to work, payable outside their normal working hours, is paid at penalty or overtime rates. For example, as per clause 31.2 of the MA000036: Plumbing and Fire Sprinklers Award 2010. These types of payments are not ordinary time earnings and should be reported as Overtime. This does not, however, include those on-call or stand-by allowances, payable in circumstances where an employee is working normal working hours to be ready to perform other urgent tasks, such as for clause 20.3 of the MA000031: Medical Practitioners Award 2020. Those payments are ordinary time earnings and should be reported as KN (Task Allowances).
- Commissions on Overtime - that are wholly referable to overtime hours worked are not ordinary time earnings and should be reported as Overtime. Commission referable to ordinary hours worked must be reported as Bonuses and Commissions.
- Leave Loading In Lieu – leave loading that is demonstrably referable to a notional loss of opportunity to work overtime is not ordinary time earnings and should be reported as Overtime.
- Identifiable Overtime component of Annualised Salary - for those annualised salary or wages amounts that have distinctly identifiable components within the outer limits that are expressly referable to overtime hours, these components are not ordinary time earnings and should be reported as Overtime. For example, as per clause 17.2 of the MA000019: Banking, Finance and Insurance Award 2020. This is only where the annualised salary is expressly stated as a sum of specific itemised components that includes an overtime component. If the annualised salary does not identify a specific overtime component, there is no component referable to being reported as overtime. If an employee works more than the outer limit of overtime hours specified in an annualised salary that includes an overtime component, then these additional hours are paid as overtime. Refer to Overtime.
- Hourly Driving Rates or Rates/km - the excess of the total ordinary hours per period, if no regard to the terms of the award, or the stipulated overtime rate for piece-rate awards that include hourly driving rates and rates per kilometre are not ordinary time earnings and should be reported as Overtime. These are usually present in piece-rates awards. For example, MA000039: Road Transport (Long Distance Operations) Award 2020.
- Overtime Bonuses – payable in respect of overtime only are not ordinary time earnings and should be reported as Overtime. Bonuses referable to ordinary hours worked must be reported as Bonuses and Commissions.
- Part Time Additional Hours – payable in accordance with industrial instruments that stipulate those additional hours are paid at a penalty or overtime rate that do not accrue leave entitlements and are not ordinary time earnings and should be reported as Overtime. For example, as per clause 21.2 of the MA000076: Educational Services (Schools) General Staffing Award 2020.
- Excess Travelling Time – payable at overtime rates for travel to an alternative place of work outside the ordinary span of hours are not ordinary time earnings and should be reported as Overtime. For example, as per clause 20.3(b)(ii) of the MA000048 Airline Operations – Ground Staff Award 2020.
Cannot be Reported as Overtime
These payments may be paid at penalty rates, but are payable on ordinary hours of work and are not, in fact, overtime:
- Shift Penalties - are not to be reported as overtime, as these payments are payable on ordinary hours of work and are ordinary time earnings. This includes shift penalties for weekends, public holidays, morning, afternoon or night shifts. These shift penalties are compensation for moving the ordinary hours of work outside of the span of hours stipulated in the industrial instrument and are not overtime. Shift penalties should be reported as Gross.
- Flexible Time Off – flexible working hours is an arrangement to work the ordinary hours of work outside the span of hours stipulated in the industrial instrument, or for hours in excess of the hours ordinarily permitted per day, to be taken at a later time at the ordinary rates of pay. The additional hours worked are ordinary time earnings and are not paid at overtime rates. It should be reported as Gross.
- TOIL – TOIL absence taken (Other Paid Leave) or paid out on termination of employment (Termination Payment) are not overtime and must NOT be reported as Overtime.
- Rostered Days Off – RDOs cashed out in service (Cash out of leave in service), RDOs taken (Other Paid Leave), paid out on termination of employment (Termination Payment) or the additional ordinary hours worked to accrue the RDO (Gross) are not overtime and must not be reported as Overtime.
The pre-sacrificed YTD amount of overtime, as defined in To be Reported as Overtime above, must only be reported under the Overtime. These YTD amounts must not be included in any other amounts reported as other Payment Types.