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nic_pop(Newbie)Newbie
23 Jan 2024

Hi, I am hoping someone can provide clarification


Our employees are on an award that has the ordinary of hours work defined as an average of 38hrs/wk. This award only clarifies overtimes as any time worked in excess of 12 hour per day. There is no provision for overtime if the employee works in excess of 38 hours per week.


Due to the nature of our business employees work their 38 hours over 4 days. We have some employee requests to work "additional reasonable hours" as they would like the extra money for their personal circumstances. They understand that this is voluntary and paid at their regular hourly rate (which is above award). If working an additional day the employee's hours total 47.5 per week.


Our question is: do we pay the SG on all hours worked (47.5hrs) or just on the ordinary hours of work (38hrs)?


We have consulted an employment lawyer with this question however they were unable to provide clarity.


Superannuation is payable on OTE, which is defined in the award. Overtime is not included in the definition of OTE. Ordinary hours within the restraints of the relevant industrial instrument are considered part of OTE and attract superannuation. We are not certain that Additional hours which are not within the definition of ordinary hours in our underlying Award would attract superannuation. Additional hours are not "ordinary hours", but are in effect overtime hours paid at ordinary hours rates.


Thank you in advance :)

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AlliATO(Community Support)Community Support
24 Jan 2024

Hi @nic_pop


 Great question.


It all comes down to the award or agreement and how it is worded around ordinary hours of work and overtime.


Generally, where it is not clearly stated in an award or agreement of what the ordinary hours of work are, and overtime is not paid for the extra hours work those extra hours would fall under ordinary time earnings (OTE) and super would be payable.


However, you indicated the ordinary hours are stipulated. In this case overtime hours over and above the ordinary hours stated in an award or agreement are not OTE and super is not payable


I recommend you follow this up with Fair Work they should be able to help you define these extra hours as OTE or unpaid overtime based on the award or agreement you fall under.

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Most helpful reply

AlliATO(Community Support)Community Support
24 Jan 2024

Hi @nic_pop


 Great question.


It all comes down to the award or agreement and how it is worded around ordinary hours of work and overtime.


Generally, where it is not clearly stated in an award or agreement of what the ordinary hours of work are, and overtime is not paid for the extra hours work those extra hours would fall under ordinary time earnings (OTE) and super would be payable.


However, you indicated the ordinary hours are stipulated. In this case overtime hours over and above the ordinary hours stated in an award or agreement are not OTE and super is not payable


I recommend you follow this up with Fair Work they should be able to help you define these extra hours as OTE or unpaid overtime based on the award or agreement you fall under.

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