With daylight savings coming to an end, HR leaders risk accidental underpayments and wage theft claims if they don’t understand how “pay by the clock”
With daylight saving set to end on Sunday, 5 April, HR leaders are being warned that the time change is far more than a calendar curiosity – it is a compliance risk that can quietly trigger underpayments, wage theft concerns and rostering chaos, particularly for overnight and rotating shifts.
Many employers still don’t realise that the clock change can directly affect what employees are owed, according to Peninsula Australia.
Laurence McLean, director of operations at Peninsula Australia, said: “When daylight savings ends, many employers don’t realise the time change can affect what employees are owed – especially for overnight and rotating shifts. Only five states adjust their clocks, with Queensland, the Northern Territory and Western Australia not participating. Under the ‘pay by the clock’ rule, staff are paid according to the time displayed, not the actual hours worked. That means when clocks go back, an employee may work an extra hour but still only receive payment for their rostered shift. Without checking the correct award or agreement, businesses risk paying staff incorrectly and creating potential exposure to wage theft concerns.”
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