In this article, you’ll learn everything there is to know about Australian working hours in 2024, from the legal framework surrounding standard working hours and time tracking to practical implementation options.
When it comes to the Down Under, effectively managing time tracking and overtime policies isn’t just about good business practice – it’s an actual legal requirement. Running a business in Australia can be incredibly fruitful, but many employers may find navigating the country’s legalities of working hours rather tricky. Thus, staying informed about regulations regarding standard working hours, overtime, and breaks is essential for businesses to remain compliant. More than staying on the right side of the law, it helps increase workforce productivity and enhance task management.
In this article, we’ll take a deep dive into the legal framework surrounding Australian working hours and time tracking in 2024 and explore practical implementation options by taking a closer look at how Kickidler can help businesses manage employees while they’re on the clock.
To ensure efficient and seamless time tracking, it’s crucial to have a proper understanding of the legal landscape. Employee rights and employer responsibilities in Australia are established through labor laws, overseen by the Fair Work Commission. And with these laws undergoing frequent revisions and updates, it’s imperative for employers to be well-versed in them.
Just last year, significant changes to the Professional Employees Award 2020 in relation to coverage of employees, overtime, penalty rates and associated record keeping obligations came into operation. These changes to the Award that covers a wide range of employees working in IT, medical research, quality auditing, engineering, and telecommunications took effect on September 16, 2023.
As a whole, this amendment to the Australian law required that records be kept for time spent and overtime or TOIL be compensated for time past ordinary hours (38-hour work week). Salary-based organizations or those businesses that hadn’t been tracking timesheets were required to start tracking ordinary and overtime hours.
Another striking example of Australian legislation’s suppleness came earlier this week, with the country’s Prime Minister and key Senate crossbenchers endorsing the proposal for workers to have the right to disconnect and not answer employers’ calls or emails outside of paid hours.
Standard work week in Australia for full-time employees is 38 hours (as defined by the National Employment Standards under the Fair Work Act). These 38 hours include both active work time and authorized leave of absences, such as sick leave, public holidays, and so on. Moreover, the terms of employment and any relevant company regulations must specifically authorize a leave of absence, and the employer must approve the requested time off before a leave of absence can be taken by an employee.
Modern awards (legally binding documents outlining minimum wage pay and working conditions) and enterprise agreements (negotiated employer-employee agreement) might specify the working hours that differ from the 38-hour norm.
Part-time employees are exempt from the 38-hour work week. The ordinary hours for them are limited to either less than 38 hours per week or their agreed-upon standard weekly working hours.
Yes. The legal limit for full-time employees is 38 hours. Employers can’t force employees to work more unless the additional hours are deemed “reasonable.” At the same time, employees have the right to refuse working overtime if they find the reason behind these additional hours to be unreasonable.
The Fair Work Commission outlines several factors to assess the reasonableness of additional working hours:
The Fair Work Ombudsman may impose fines for noncompliance with working hour laws. Dissatisfied workers can also file complaints with the FWC, which could have legal repercussions, so it is best to make every effort to comply with legal regulations.
In Australia, averaging agreements allow employers and employees to distribute work hours differently across a set period, typically exceeding a single week. These agreements can be beneficial for both parties, since they offer more flexible work arrangements. They can also be beneficial for those industries where seasonal fluctuations in workload is a typical occurrence.
And while awards or enterprise agreements may specify different working hours than the standard 38 hours per week, what about employees who are not under enterprise agreements or awards?
Averaging arrangements with such employees can still be established – through a written agreement. Legally, the maximum for this averaging agreement is 26 weeks. Like employees under awards, the average weekly hours can’t surpass the standard limits unless deemed reasonable based on the factors we’ve mentioned earlier.
Under the Fair Work Act’s basic workplace protection rules, employers are not allowed to force an employee to enter into an averaging agreement. The Fair Work Ombudsman can file a lawsuit against an employer if they are found to be doing so.
According to the Australian government, overtime applies when employees work outside their ordinary hours that are determined by their enterprise agreement, award, registered agreement, or employment contract.
Full-time employees are considered to be working overtime if they work:
Awards, agreements, and individual contracts can specify situations where an employer can require overtime. It can be phrased as “reasonable overtime,” meaning a staff member can’t be forced to work excessive hours. Even with reasonable overtime, there is a limit to the total number of weekly hours an employee can be required to work.
The length, timing, and payment of breaks Australian employees are entitled to are determined by registered agreements that apply to the employee’s industry and workplace, awards, or enterprise agreements.
Three main categories that breaks in Australia fall into are as follows:
When it comes to time tracking, Australian businesses have a plethora of options tailored to the size and requirements of each business.
Here’s a brief mention of top 3 solutions currently available on the market:
If you’re interested in taking a deeper dive into the world of time tracking solutions, we suggest that you check the comprehensive overview we compiled earlier this year here.
Managing employee work hours can be complex, especially if clinging to outdated manual methods of time tracking. Adopting software that automates this process can save employers time while guaranteeing accuracy.
Kickidler is a leading time tracking solution that simplifies workforce management, offering a range of features to streamline processes in order to help businesses stay on top of their internal workflows. It can truly revolutionize the way employers monitor and manage work hours of their workforce.
This comprehensive software is equipped with sophisticated tools that’re designed to capture, analyze, and optimize time employees spend on tasks and projects.
Let’s cover some of Kickidler’s features in more detail:
Now that you’ve gained an understanding of Australian legal regulations regarding working hours in 2024, the next step is to remain compliant with them. Being compliant helps you and. Adhering to legal regulations helps avoid unnecessary lawsuits, strengthens employee wellbeing by improving their work-life balance, reduces absenteeism, boosts morale, and increases productivity – which sounds like a win-win situation for both your team and your business.
Effective time tracking and compliance with labor laws are essential for businesses to succeed in Australia. No matter what solution you choose to digitize the process of time tracking in your organization, ensure its alignment with your particular needs. Staying informed, creating a concise employee attendance policy, and keeping work time records are essential for creating a compliant and productive workplace. And your choice of time tracking solution plays a pivotal role in achieving these goals.
Select sensibly, stay compliant, and let your business succeed.