Beware the Daylight Saving ‘by the clock’ pay trap, warns Ombudsman
With the clocks set to turn back at 3am on April 2, 2023, the Fair Work Ombudsman is urging small business owners to check enterprise agreements and not to get caught out by the end of daylight saving. How many hours employees are paid, will depend on these agreements.
Don’t get caught out by the end of daylight saving
Clocks are set to go back one hour at 3am to 2am on April 2 in the following states and territories: Australian Capital Territory, New South Wales, South Australia, Tasmania and Victoria.
Meanwhile, there is no time change and it will be business as usual in the Northern Territory, Queensland and Western Australia.
Do shift workers get paid for nine hours or eight?
Well … the short answer is, that depends.
If an employee is working through the night, how they will be paid will depend upon their award or enterprise agreement. If there is nothing in their award or agreement about daylight saving, then payment is made ‘by the clock’
What does ‘by the clock’ mean?
Daylight saving time ends with rolling the clock back from 3am to 2am. This means that employees working an overnight shift will work one hour more but aren’t paid for that extra hour.
But to balance it out, these same workers would have been paid for an extra hour when daylight saving began …
Huh? What do we mean?
When daylight saving time started and the clock was rolled forward, employees worked one hour less but should have been paid according to the clock.
If you’re uncertain where you stand check the award or enterprise agreement for your sector for terms about daylight saving.
If you don’t know your award, use Find my award.
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Cec is a content creator, director, producer and journalist with over 25 years of experience. She is the editor of Business Builders and Flying Solo, the executive producer of Kochie's Business Builders TV show on the 7 network, and the host of the Flying Solo and First Act podcasts.
She was the founding editor of Sydney street press The Brag and has worked as the editor on titles as diverse as SX, CULT, Better Pictures, Total Rock, MTV, fasterlouder, mynikonlife and Fantastic Living.
She has extensive experience working as a news journalist, covering all the issues that matter in the small business, political, health and LGBTIQ arenas. She has been a presenter for FBI radio and OutTV.
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