Do shift workers who work overtime get paid the shift penalty in addition to the penalties for overtime?
Penalties for overtime and shift work are not normally cumulative. This means that an employee would not usually receive penalties for shift work when working overtime.
However, industrial instruments such as awards and enterprise agreements can deviate from this general rule so it is always important to check the exact terms of the industrial instruments that govern the employee.
The Manufacturing and Associated Industries and Occupations Award 2010 does not require an employer to pay a shift penalty in addition to overtime payments for shift workers that work overtime.
This would mean that, for example, a standard shift worker whose hourly rate was $20 and who received a 30% night shift loading would be paid $26 for that shift work. If the employee worked one hour of overtime at the time and a half penalty, the employee would be paid an additional 50% on top of the base rate instead of the 30% shift loading. As a resulttheir overtime rate would be $30.
However, the Graphic Arts, Printing and Publishing Award 2010 is an example of an award that treats shift loadings differently.
Clause 31.3(c) of the Graphic Arts, Printing and Publishing Award 2010 states that “..the shift allowance is part of the employee’s weekly wage for the purpose of calculating the overtime rate payable in accordance with this award".
Therefore, under this award shift workers who worked overtime would receive the relevant shift loading in addition to their overtime payment and would have the shift loading included in this calculation.
This would mean that, for example, an employee whose base rate of pay was $20 and who received a 30% night shift loading would be paid $26 per hour for that shift work. If the employee worked one hour of overtime at the time and a half penalty, then the $26 rate would be used to calculate the overtime. This would mean that the overtime rate for one hour of overtime would be $39 for this employee.
Please call the Workplace Advice Line on 1300 55 66 77 for further information about shift work or overtime penalties under any award or industrial instrument.
