The Professional Employees Award, covering engineers, scientists, medical researchers, and employees in information technology, quality auditing and telecommunications services, historically did not provide any payments for overtime or penalty rates for working unsociable hours.

Professional employees are usually paid an annual salary that is intended to cover all hours worked, and often do not have any fixed hours of work. They are usually not paid for any overtime worked for hours worked in excess of 38 hours per week, and are rarely granted time off in lieu for additional or excessive hours. 

Changes to hours of work and overtime

The Fair Work Commission (FWC) considered it necessary to establish a fair and relevant safety net, to prescribe penalty rates to compensate for working unsociable hours and provide directions around working overtime.

The following changes apply from the first full pay period that starts on or after 16 September 2023: 

• Overtime: Employees will be paid their hourly rate for all hours worked in excess of 38 in a week. This will include work on or in connection with call-backs and work performed on electronic devices or otherwise remotely.  
• Time off in lieu: Employees can agree to take TOIL instead of receiving payment for overtime.  
• Penalty rates: A penalty rate of 25 per cent will be payable for all hours worked between 10pm and 6am on any day Monday to Saturday. A penalty rate of 50 per cent will be applicable for all hours worked on a Sunday or a public holiday. For casual employees, these penalty rates are in addition to their 25 per cent casual loading.

Record-keeping obligations

The employer must keep records of all hours worked by an employee:  

• in excess of 38 hours per week  
• between 10pm and 6am Monday to Saturday, and    
• on a Sunday or a public holiday.  

Exemptions

The FWC determined that these changes will not apply to employees who have a contractual entitlement to an annual salary that exceeds the minimum award rate by 25 per cent or more.

Key take-aways

These changes will be in force on the first full pay period that starts on or after 16 September 2023. We recommend taking the following steps:  

• conduct an audit on current employee contracts and salary levels, as well as the overtime practices of employees that are covered by this award, and 
• develop and implement appropriate plans ahead of these changes taking effect. 

Bayside Group’s experienced Workplace Relations team can assist. Learn more about our services here or contact us on 03 9864 6000.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. If you require advice or assistance, please contact our Workplace Relations consultants.