Employing casuals satisfies a business need for flexibility and portability. Employing casual drivers under the Road Transport and Distribution (RTD) Award, however, has caused some confusion in terms of how to calculate payments and loadings for work outside of ordinary hoursovertime. This HR Highlight will focus on clearing up the confusion around compound loadings and penalty rates for casual drivers.

Ordinary Hours

As we have explored before there is no standard definition of “ordinary”, however, in the case of ordinary hours for oil distribution workers under the RTD, this is governed by section 23:

  • 35 hours per week (or 70 per fortnight) (23.2)
  • No more than 8 ordinary hours per day between 06:30-17:30 Monday to Friday (unless modified by IFA or general agreement to include Saturday 23.4) (23.3)

Overtime Hours

All hours in excess of the above are considered outside of ‘Ordinary Hours’ and attract a penalty rate of time and a half for the first two hours and double time thereafter, with each day standing on its own (23.4).

Casual Loading

The confusion around “ordinary” is compounded by the use of a loading and a penalty at the same time. As an offset for insecure work and reduced benefits casual workers are often paid a “casual loading”, as is the case with the RTD.  This loading causes some businesses issues as it changes from one type of work to another:

  • While working ordinary hours receive hourly rate plus a loading of 25% and a minimum of 4 hours (12.5.c)
  • While working overtime hours receive hourly rate at the standard penalty rate (time and a half for the first two hours, double time thereafter) plus a loading of 10% (12.5.d)

This compounding of penalty rates and loadings, and the operation of the loading change between casual and ordinary hours, has been a cause for some confusion, and was the topic of a recent case. Fair Work confirmed the loading change.

The details of this have been included, as notes, in the ACAPMA Quick Reference Guides for some time, however, after receiving several enquiries on this matter recently we have updated the Quick Reference Guide to include the full calculation for Casual Hours ORDINARY and Casual Hours OVERTIME in table form. Members are invited to click here to download the latest version.

Worker GradeCasual ORDINARY Hours (25% Loading) per hourCasual
OVERTIME Hours (10% Loading) per hour
Casual OVERTIME Hours (10% Loading) per hour
Time and a Half for the first 2 hoursDouble time after 2 hours
1$           23.53$           31.06$           41.42
2$           24.13$           31.85$           42.47
3$           24.43$           32.25$           42.99
4$           24.88$           32.84$           43.79
5$           25.18$           33.24$           44.31
6$           25.48$           33.63$           44.84
7$           25.85$           34.12$           45.50
8$           26.60$           35.11$           46.81
9$           27.04$           35.70$           47.60
10$           27.71$           36.58$           48.77

Here to Help

ACAPMA members are reminded that the ACAPMAlliance Workplace Relations Professionals are available to assist with all employment matters. For more information just call 1300 160 270.

HR Highlights are things to consider, implement and watch out for in your business. They are provided as general advice and you should seek further advice on your situation by calling 1300 160 270 and speaking to one of the ACAPMA Workplace Relations Professionals its free for members. ACAPMA membership is affordable at only $550 per year for a single site and valuable with sites gaining HR advice support and representation as well as a raft of other benefits and discounts. Click here to apply for ACAPMA membership.