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Understanding the Fair Work Commission’s ‘time off in lieu of overtime payments’ changes

Published: August 5, 2015

In what is being viewed as a coup for workplace flexibility, newly introduced Fair Work Commission award provisions now mean that employees and employers alike will enjoy greater freedom to trade their overtime payments for time off in lieu. This effectively means that employees will no longer automatically be paid for overtime and will instead have the option of negotiating with their employer to take time off in lieu.

An important clause to the new provisions states that one hour of additional time worked means the employee can have one hour of time off, if they choose.

Integral to the decision, the AIG successfully argued their case that many workers value time off more than extra money, particularly carers. 

For more information on overtime pay, please visit the Fair Work Ombudsman’s website. 

Have a burning question about managing awards? Get in touch with us today to discover how our software can help make award interpretation a cinch.

The Mitrefinch Time and Attendance system takes the stress out of payroll, award and entitlement calculations. Easily calculate base and overtime pay, weekend and public holiday penalties, as well as leave loading and shift penalties, ensuring consistent application of your business rules and compliance with new workplace legislation. 

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