Australian Working Hours: Everything Employers Need To Know In 2024
Emily Maina
Last update on:
July 19, 2024 1:47 PM
Published on:
Running a business in Australia provides many opportunities to thrive, but navigating the legalities of working hours can be tricky for many employers. As you stay informed about regulations regarding standard hours, overtime, and breaks, your business can remain compliant.
In this article, we'll break down everything you need to know about Australian working hours in 2024. We’ll also look at how Timeero, one of the best apps for time tracking, can simplify how you manage employees while they’re on the clock. The information found in this guide will help you increase workforce productivity and stay on the right side of the law.
Learn how Timeero can simplify managing working hours for your business in Australia.
It's important to note that these 38 hours encompass both active work time and authorized leave of absences (paid or unpaid) like sick leave, public holidays, etc. Before an employee can take a leave of absence, the employer must approve the requested time off. Additionally, the terms of employment and any relevant laws must specifically authorize a leave of absence.
However, there are some exceptions to work week guidelines:
1. Modern Awards and Enterprise Agreements
A modern award isa legally binding document outlining minimum wage pay and working conditions. An enterprise agreement is a negotiated agreement between an employer and their employees.
These industry-specific documents or agreements between an employer and their workforce might specify different standard working hours than the 38 hour norm. It's essential to consult documents for accurate information about a specific employee’s work hours.
2. Part-Time Employees
Casual employees and workers hired on a part-time basis are exempt from the 38 hour work week. The ordinary hours worked for part-time employees are limited to either:
Fewer than 38 hours per week
Their agreed-upon standard weekly working hours
Are There Legal Limits to Working Hours in Australia?
Yes, the legal limit for full-time employees is 38 hours. Employers cannot force employees to work more than their ordinary hours unless the additional hours are deemed "reasonable". However, employees have the right to refuse to work more hours if they find them unreasonable.
The Fair Work Ombudsman (FWO) 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.
Which Averaging Agreements Are Legal in Australia?
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 employers and employees, as they provide more flexibility in working arrangements. They can also be a great option for industries that experience seasonal fluctuations in workload.
For example, an award or agreement for the retail industry in Victoria might allow for an increased average rate of weekly working hours during peak seasons, like Christmas. This can happen if balance is achieved by requiring fewer working hours during other times of the year when business is slow.
As mentioned above, awards or enterprise agreements may specify different standard working hours than the standard 38 hours per week. Agreements can allow for the averaging of hours of work over a period of time that is greater than a week.
Employers can still establish averaging arrangements with these employees through a written agreement. Legally, the maximum for this averaging agreement is 26 weeks. Like employees under modern awards, the average weekly hours cannot surpass the standard limits unless deemed reasonable based on the factors mentioned earlier in this article.
The Fair Work Act 2009 clarifies that award-free employees under averaging agreements are not automatically entitled to overtime pay. Therefore, it's crucial to consider whether the employee's existing pay adequately compensates for the additional hours worked when evaluating the reasonableness of the arrangement.
Under the FW Act's basic workplace protection rules, employers are not allowed to force an employee to enter or not enter into an averaging agreement. The Fair Work Ombudsman can file a lawsuit against an employer if they are found to be doing so.
What Counts As Overtime in Australia?
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.
For full-time employees, overtime applies when employees work:
More than their maximum daily or weekly ordinary hours
Beyond the spread of ordinary hours
These terms also apply to part-time workers who accrue overtime if they work beyond their agreed-upon schedule. The "spread of ordinary hours" refers to the designated timeframe within which your regular work hours can fall. This information is typically outlined in a worker's employment contract. For instance, if the hours of a spread are 7 am - 7 pm, any work an employee performs outside this window would be considered overtime.
Awards, agreements, and individual contracts can specify situations where an employer can require overtime. It is often phrased as "reasonable overtime," meaning a staff member cannot be forced to work excessive hours.
There's also a limit to the total number of weekly hours an employee can be required to work, even with overtime. In such cases, workers have the right to refuse unreasonable overtime requests.
The overtime rate is usually higher than an employee’s standard hourly rate. Check out our employer's guide to understand how overtime pay in Australia works.
Which Breaks Are Australian Employees Entitled to?
Australian employees are entitled to breaks that fall into three main categories: rest breaks, meal breaks (including crib breaks), and breaks between shifts. The length, timing, and payment of these break entitlements are determined by registered agreements that apply to the employee's industry and workplace, awards, or enterprise agreements.
Rest Breaks
Also known as "rest pauses" or "tea breaks," rest breaks offer employees a short period to rest and recharge during working hours. Employees are typically entitled to a rest break after working continuously.
The length of rest breaks is usually short, ranging from 10 to 20 minutes. When it comes to payment, rest breaks are usually unpaid. However, some awards or agreements might include provisions for paid rest breaks in certain circumstances.
Meal Breaks
Meal breaks give employees a longer period of uninterrupted rest to eat a proper meal. Some people call them “lunch breaks.”
Similar to rest breaks, the specific regulations regarding meal breaks are established within the employee’s relevant award or agreement. These regulations typically cover the duration, timing, and payment terms for the break. We explain this in more detail in our article on lunch break laws in Australia.
Crib breaks are a specific type of paid meal break. These breaks are designated for situations where the nature of the work might require employees to:
Potentially resume work during their meal break. In some instances, employees might need to be available to respond to urgent matters or perform essential tasks during their designated meal break. A crib break acknowledges this possibility and compensates employees for their uninterrupted availability.
Remain at their workplace. Crib breaks are also applicable in scenarios where employees cannot leave their work area or the workplace during their meal break. This can be due to the nature of the job or safety regulations.
Breaks Between Shifts
Industry-specific awards and registered agreements often stipulate a minimum amount of time off that employees must receive between the end of one shift and the start of another. This break ensures employees have sufficient time to rest and be prepared for their upcoming shift.
How Can Timeero Help You Manage Employee Working Hours in Australia?
Managing employee work hours can be complex, especially if you’re relying on outdated manual methods. Adopting software that automates this process can save employers time while guaranteeing accuracy. Timeero is a leading GPS time tracking app that simplifies employee management. The software offers a range of features to streamline processes to help you stay on top of internal workflows.
Let’s cover Timeero’s features in more detail.
Time and GPS Tracking
A time-tracking solution can help you effectively monitor employees and ensure they do not exceed the 38 hour threshold or agreed-upon hours. Timeero automates the time tracking process, freeing up valuable time for employees and reducing administrative tasks for managers.
Employees can clock in and out of shifts directly from their smartphones or tablets using Timeero's user-friendly app. As an employer, you get real-time access to all timekeeping data, including overtime hours and break information.
Timeero accurately records employee timesheet data.
Through GPS technology, Timeero’s “Who’s Working” dashboard allows companies with mobile workforces to see the real-time location of their workers. This transparency encourages accountability and may increase productivity levels of field-based employees.
Locate workers in real-time on the “Who’s Working” dashboard.
Segmented Tracking
Timeero’s segmented tracking feature breaks down an employee’s workday. The software divides a day’s activities into smaller chunks and then translates the segmented data into a user-friendly visual timeline.
The segmented tracking timeline displays information for each trip segment, such as the duration of each trip and starting/ending locations. Clicking on a segment further zooms in, potentially revealing an employee’s driving route. The details provided through segmented tracking can be a great way to identify areas for improvement.
The best thing about utilizing segmented tracking, is that your workers don’t have to clock in and out multiple times throughout the day as they travel to each location. They can simply clock in at the start of their shift and then clock out at the end of their day.
Timeero’s segmented tracking breaks down an employee’s workday.
Electronic Signatures
For an additional layer of security, Timeero’s Electronic Signatures feature allows employees to digitally sign off on their timesheets, verifying the information provided is correct and confirming their presence at work locations.
Timeero’s timesheets allow employees to electronically sign off on their work hours.
Employers should consider enabling client signatures on timesheets for businesses interacting with clients or customers. Clients can sign off on employee timesheets, documenting the employee’s presence at the job site as well as add notes stating project progress.
Scheduling
A company can prevent double booking and reduce the occurrence of missed appointments by using schedules to keep things organized. Timeero’s scheduling features save you valuable time and keep your employee’s up to date by simplifying team scheduling.
Quickly create, edit, and send out schedules within minutes.
Through the app, you can build and edit work schedules in minutes. Timeero’s scheduling functions allow you to assign shifts directly to employees based on work orders, make real-time changes and send automatic notifications to keep your team informed.
Employees have a degree of control over their schedules by being allowed to accept all shifts, decline, or choose specific hours that fit their availability. They can do this by using the “Accept All”, “Decline All”, or “Cherry Pick” options.
Increase scheduling flexibility by allowing employees to cherry-pick shifts.
Administrators are notified when an employee makes their shift selections. Pending shifts are listed chronologically, with the newest at the top, highlighting upcoming needs.
Hovering over a shift reveals which employee has accepted or declined the hours, giving you a quick overview of who's working on the clock. This scheduling structure prevents scheduling conflicts and no-shows, ensuring smooth operation.
Australian workplace laws clearly define what counts as overtime, so fairly compensating employees for extra work hours should be a priority. Timeero automatically tracks actual employee hours and compares them against predetermined schedules.
When an employee approaches the overtime threshold, the system sends out alerts, notifying the employer and appropriate employee. Timeero’s real-time monitoring helps businesses avoid working employees beyond legal overtime limits.
Timeero sends approaching overtime alerts to managers and employees.
To make it easier for admins to manage employee work hours, you can create overtime thresholds in your Timeero account. If you don’t want employees to work overtime, you can enable the app to clock them out after they reach a certain number of hours.
Timeero provides two methods for employees to track their breaks. Manual breaks allow employees to select ‘Break’ on their time clocks to start or stop breaks. Automatic breaks are automatically inserted in employee timesheets after they’ve worked a certain number of hours. You can also customize break rules for employees in the Company Settings menu found in your Timeero app.
Create and customize employee break rules in Company Settings.
Geofencing
With Timeero’s geofencing feature, you can create virtual boundaries around designated work locations to prevent employees from clocking in or out from unauthorized locations.
Many businesses experience "buddy punching" issues where someone clocks in for a colleague who isn't present. With geofencing, you can block employees from clocking in if they are outside the designated work areas.
Timeero sends automated notifications to employee smartphones, reminding them to clock in or out as they enter or exit the geofence. This gentle nudge promotes accountability and reduces the chances of missed punches. This feature also prevents staff members from working off the clock, leading to more accurate timesheets.
Simplify Workforce Management With Timeero
Now that you have gained an understanding of Australian working hours in 2024, the next step is to remain compliant with legal regulations. Being compliant helps you avoid unnecessary lawsuits and increases employee well-being by offering work-life balance. Adhering to legal regulations also reduces absenteeism, boosts morale, and increases productivity—a win-win situation for both your team and your business.
Other useful features of this app include mileage tracking, suggested mileage functionality, route replay, and custom reports. To streamline payroll, Timeero integrates with various payroll software, such as Xero, Gusto, and Zapier to transfer attendance data and pay employees on time.
An app like Timeero automates most employee management processes, allowing managers to focus on more strategic tasks. To learn more about this software and how it can take your business to the next level, read our detailed Timeero review.
FAQs
Is a 40-Hour Work Week Legal in Australia?
A 40-hour work week isn't illegal in Australia, but any time worked beyond the standard 38 hours is classified as overtime. Keep in mind, employees working overtime are entitled to additional compensation under the law.
What Is Considered Full-Time Hours in Australia?
In Australia, full-time employment is defined as working 38 hours per week. However, some awards or enterprise agreements might specify higher or lower maximums for full-time roles.
How Many Hours Are Part-Time Workers Required to Work per Week in Australia?
There is no mandated minimum or maximum amount of weekly hours that part-time workers must work in Australia. Part-time employment contracts typically specify the agreed-upon number of hours per week, month, or on a casual basis.
Boost productivity and ensure legal compliance with Timeero.
Emily Maina is a tech-savvy writer with a passion for creating content. With years of experience in the industry, she is well-versed in the latest trends and developments in the tech industry. When she’s not working, Emily enjoys exploring the great outdoors or watching her favorite shows.
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