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Work Hours, Overtime, and Penalty Rates for Professional Employees Award
New Order or Decree
Authors: Naomi Seddon, Shareholder, and Xi (Grace) Yang, Of Counsel – Littler
On March 16, 2023, the Fair Work Commission (FWC) amended the Professional Employees Award 2020 (Award) to (1) clarify the categories of employees covered by the law, (2) impose additional obligations on employers to track hours worked and provide overtime compensation, and (3) update penalty rates for noncompliance. The Award covers employers mainly engaged in the information technology, medical research, quality auditing or telecommunications services industries as well as employers of professional engineers and scientists.
The employer must pay a full-time employee the appropriate minimum hourly rate for all hours worked in excess of 38 hours per week, or an average of 38 hours per week over an agreed period (subject to exemptions). This includes call-backs and work performed on electronic devices or otherwise remotely. The payment is in addition to the minimum annual wage prescribed for working ordinary hours. An employee and employer may agree, in writing, to the employee taking time off within six months after the overtime is worked. Employers must adjust...
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