We would like to temporarily run a night shift for three days and wanted to know how this should be paid. Our employees are usually day workers and will work day work on Monday and Tuesday, but on Wednesday, Thursday and Friday they will work night shifts. We operate under the Manufacturing award. How would employees who work on this shift be paid?
Employees who work in accordance with the proposed scenario will be paid a “short shift” loading for the three night shifts. This means that for each of the three night shifts that the employee works, they will be paid 150% for the first three hours and 200% thereafter for the ordinary hours on that shift.
Under the Manufacturing and Associated Industries and Occupations Award 2010 (the Award), a night shift is any shift finishing after midnight and at or before 8.00am. For example a shift that ran from 10.00pm to 6.30am would be considered a night shift under the Award.
Generally, for an employee who works a night shift, the shift penalty will be 15% (or 30% in some circumstances*). However as this night shift only runs for three shifts, it will attract a much higher penalty. Clause 37.3(b) of the Award states:
"(b) An employee who works on an afternoon or night shift which does not continue:
(ii) for at least 38 ordinary hours (where more than eight ordinary hours are worked on each shift and the shift arrangement is in accordance with clauses 36.3 or 36.4),
This means that instead of being paid a 15% loading1for the three night shifts, employees will be entitled to be paid an additional 50% loading for the first three hours and an additional 100% for the remaining ordinary hours of the shift. This loading (often called a “short shift” loading) is considered to be the shift loading and is not the same as overtime.
In the scenario provided, employees who will perform day work on Monday and Tuesday will be paid as usual for their ordinary hours on those days. However on Wednesday, Thursday and Friday, They will be paid a total of 150% for the first three hours of their shift and 200% for the remainder of the ordinary hours in their shift.
Due to the “short shift” penalty above, it can be quite expensive to run a shift that does not last for five consecutive days. It may be more economical if the employer runs the shift for five days, even if this is not entirely necessary, as it will enable them to pay a 15% loading1 instead of the higher “short shift” penalty in clause 37.3(b) of the Award.
1A 30% night shift loading is paid for an employee who works night shift only, who remains on night shift for longer than four consecutive weeks or works on a night shift which does not rotate with another shift so as to enable them to have at least one third of their time off of night shift per cycle. See clause 37.3(c)of the award.
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