One of our supervisors is about to take 3 months of long service leave, during their absence we have asked another employee to step up and take on extra duties to help over this period. The employee will not be taking on all the duties of the supervisor, but will need to spend at least half of their time each day undertaking extra duties. Do we have to increase the employee’s pay during this time to the same level as the supervisor?
The obligation to pay a higher rate of pay for an employee to take on additional duties at a higher level will depend upon whether there is a Modern Award, Enterprise Agreement, Company policy or contractual clause providing for such additional payments.
Where the role of the supervisor is covered by a Modern Award or Enterprise Agreement, these need to be checked to see if there is a clause dealing with “Higher Duties”.
For example, under the Manufacturing and Associated Industries and Occupations Award 2010, clause 24.2 provides an obligation where an employee will be engaged in undertaking duties that would fall into a higher classification than they are in – doing higher duties. In this clause, when an employee is undertaking higher duties for more than two hours during the day or shift, they must be paid the higher minimum wage for the entire day or shift. Where the higher duties undertaken are for less than two hours, the employee must be paid the higher rate for the time so worked.
It is important to note that where such a provision applies to the employee, that the obligation is not necessarily to match the pay of the person they are replacing, but to pay the higher wage rate for the higher classification as set out in the award. Therefore, if in this case the supervisor is being paid above award wages, the employer is not obliged to match this wage rate, and only needs to provide a higher wage rate in line with the wages in the award that apply to the supervisor classification.
Where there is no Modern Award or enterprise agreement covering the employee, or there is no higher duties clause, payment of a higher wage rate will be at the discretion of the employer. There is no legal obligation to match the wage rate of the employee who is on leave and being replaced. However, it would not be uncommon for an employee undertaking higher duties to have an expectation that they would be paid an allowance or higher wage rate, and this should be clearly addressed at the time the offer or direction is made to take up the additional higher duties.
If no additional remuneration is offered, the employee may not see any inherent value in taking on additional duties or responsibilities, so it is important to manage the expectations of the employee. It is a good idea to have a company policy that deals with this situation so that there is clear guidance of the benefits to the employee of taking up additional duties, and the obligation of the employee to do so. Some employers may apply an allowance based on a percentage – e.g. 10% higher duties allowance, others may choose to match the higher rate of pay, or may apply a set dollar amount.
Ultimately it is up to the business to decide the amount where there is no Modern Award, Enterprise Agreement or Company policy providing the obligation to additional remuneration.
For more informationplease call the Ai Group Workplace Advice Line on 1300 55 66 77.
