3.1.5.2 Calculate overtime & shift allowance
Worker
A worker completes the questions about overtime and/or shift work in the Pre-Injury Average Weekly Earnings PIAWE Details section (Questions 32-36) on the Worker’s Injury Claim Form.
Employer
An employer completes the questions about overtime and/or shift work in the Pre-Injury Average Weekly Earnings Details section (Questions 24-28) on the Employer's Claim Report.
The employer must give the Agent requested details of the overtime or shift allowances. It is a requirement of the WorkCover Insurance Policy In this Act — workers compensation cover means insurance or registration required under a law of another State or of a Territory in respect of liability for statutory workers compensation under that law that employers obtain and keep and provide documents requested by WorkSafe or Agents.
Process
Follow these steps to calculate overtime and/or shift allowance Under the legislation, unless inconsistent with the context or subject-matter — shift allowance means an allowance or loading paid or payable for shift work or working on public holidays, Saturdays or Sundays entitlements.
| Step | Agent action |
|---|---|
| Gather details of overtime and shift work |
If the worker has claimed for overtime or shift allowances get :
Note: If, despite requests, the employer cannot or does not supply the above information, obtain it from the worker. |
| Request further information if there are inconsistencies |
If the Worker's Injury Claim form and Employer's Claim Report provide inconsistent information, the Agent should ask for further documented evidence from the employer and worker to explain the differences. The Agent can then assess and make judgment on the inconsistencies and record the decision on file. If the matter goes to conciliation, these documents would form part of the Agent’s submission. See: Decision making Use ordinary earnings if overtime/shift allowances in dispute. If the overtime/shift allowance claim is not finalised or is in dispute when the claim is accepted, Agents are to use the worker's ordinary earnings to calculate the PIAWE until the actual earning rate is determined. It might be necessary later to adjust weekly payments and pay interest. |
| Assess and calculate shift allowances |
Check the conditions to include shift allowances in PIAWE. See: Overtime & shift allowances If the information meets the conditions, shift allowances must be included in the calculation of the worker’s PIAWE. Calculate shift allowances to be included in the calculation of PIAWE. The relevant period is the worker's period of employment with one employer, up to 52 weeks before the injury. Record this amount in ACCtion and in the claim file. Claims first made on or before 5 April 2010 Weeks that the worker worked or was on paid leave are included in the total number of weeks. Claims first made on or after 5 April 2010 up to 31 October 2010 Only weeks that the worker worked or was on paid annual leave are included in the weeks count. Any periods where the worker was on other forms of paid leave are deducted from the total number of weeks. Claims for weekly payments received on or after 1 November 2010 Only full or partial weeks that the worker worked or was on paid annual leave at the base rate of pay are included in the weeks’ count. |
| Assess and calculate overtime |
Determine if the overtime claimed is valid and the amount that can be included in the calculation of PIAWE for the first 26 weeks for claims received by the Agent before 5 April 2010 or 52 weeks for claims received by the Agent after 5 April 2010. Check the conditions to include overtime in PIAWE. See: Overtime & shift allowances If the information meets the conditions, overtime must be included in the calculation of the worker’s PIAWE. Calculate and record amount of overtime. The relevant period is the worker's period of employment with one employer, up to 52 weeks before the injury. Record amount in ACCtion and in the claim file. |
| Record decision |
Document decision in the claim file - include notes/calculations made on the overtime/shift allowances. Write to the worker and employer to advise whether there is an entitlement to overtime or shift allowance to calculate PIAWE and if there is, determine the rate and the start date of entitlement. |
3.1.5.3 Continuing overtime and/or shift allowances
A wide variety of circumstances may establish a worker’s entitlement to overtime/shift work. Agents need to consider the circumstances of each application.
Assess whether the worker but for the injury, would have worked overtime and/or would have carried out shift work attracting a shift allowance during the first 52 week period (or 26 weeks if the claim is made between 1 September 2000 and 4 April 2010) after the injury.
Overtime example non-continuing overtime
Scenario:
- a worker worked overtime for 10 months at five hours per week during the 52 week relevant period
- overtime ceased two months before the injury.
In this case, overtime ceased two months before injury and there is no evidence from the employer or worker that the worker would have worked overtime during the first 52 week period after the injury.
Shift allowances example non-continuing shift allowances
Scenario:
- a corrections officer worked a three week rotating rostered shift until three months before an injury
- the rotating rostered shift work included shift allowances for a number of shifts
- three months before the injury the worker accepted an offer of a permanent day shift roster without shift allowances.
In this case, shift work ceased three months before injury and there is no evidence that the worker would have been paid shift allowances had the injury not occurred.
3.1.5.4 Types of shift allowances
The types of allowances may be divided into two types:
- allowances associated with the timing of the work
- allowances associated with the nature (duties) of the work.
Allowances associated with the timing of the work are the only shift allowances covered by the legislation.
There are two main types of shift allowances:
- shift allowances paid for each hour of the shift that is worked. This type of shift allowance may be referred to as a penalty rate
- shift allowances paid per rostered shift or period of duty for which the shift allowance applies.
Workers receive more than one type of shift allowance
Workers can receive more than one type of shift allowance in a single pay period. A single pay period could include different shifts in a day or shifts worked on different days.
Therefore, Agents need to find out which type of shift allowance was paid for the different type of shifts in each pay period.
Different shifts
It is possible to have different shifts in an occupation, each of which may attract shift allowances.
- morning shift
- afternoon shift
- night shift
- permanent night shift
- weekend shift.
Different terms for shift allowances
Terms of employment might use a number of different terms to describe 'shift allowances'.
Different terms can be used to refer to shift allowances. If the allowance paid meets the broad definition of a shift allowance in the legislation, it is used to calculate a worker's compensation.
- shift penalty payments
- shift loadings
- penalty payments for shifts
- weekend penalties
- special rates.
Identify a shift allowance
These points can help Agents identify a shift allowance that can be used to calculate a worker's PIAWE:
- the payroll download, an industrial award or Enterprise Bargaining Agreement (EBA) might identify shift allowances.
EBAs and awards must not be relied on to list all shift allowances that may be included in the calculation of PIAWE.
Some allowances may fit the definition of a shift allowances but might not be described or listed as a shift allowances. As an example, see: Nursing shift allowances
Define the ordinary hours in an occupation. The award or EBA might contain this information.
In occupations where work is performed 24 hours a day, seven days a week, it is possible that there are no ordinary hours. There might be three or four shifts, with some of them considered to be 'socially inconvenient'. Each of the different shifts might have a different shift allowances. For example: emergency services and nursing.
Consult with the employer and worker about the nature of the allowance claimed. If it is still not clear, Agents need to ask their Technical Manager The Technical Manager liaises with Case Managers, employers, workers and legal providers to support the management of a workers' compensation claim..
Other payments & allowances that are not a shift allowances
There are many other allowances that workers may receive that are unrelated to the particular spread of the hours of employment.
Most of these other allowances are to either:
- reimburse workers for expenses they have incurred in the course of their employment
- compensate workers for duties or environments that are considered unpleasant.
These allowances are not for the timing of the shift and so are not shift allowances.
Examples
| Allowance | Is not a shift allowance because: |
|---|---|
| tool allowance | it is an allowance for the general work performed (or the occupation of the worker) and is not directly related to the timing of the shift worked. |
| meal allowance | it covers a direct expense incurred by the worker which the employer effectively reimburses. |
| confectioner’s dust allowance | the allowance relates to the nature of the work performed rather than the timing of a shift. |
| nurse’s nauseous work allowance | it is paid for the type of work being performed and does not relate to the shift or the timing of the work. |
3.1.5.5 Nursing shift allowances
The nurse's award is used as an example of how to use an award to define what is or is not a shift allowance.
Example
The Nurses (Victorian Health Services) Award is useful to demonstrate how an award can be used to help assess shift allowance claims.
The complexity of the arrangements that govern shift allowances in this award also demonstrates the need to carefully examine claims for shift allowances against the entire award, not just the sections titled, ‘Shift Allowance’ and to apply the general definition of shift allowances provided above.
Shift allowances are described in three places
In the Nurses (Victorian Health Services) Award, shift allowances are described in three separate parts of the award:
- Part B ‘Common Conditions’
- Part C ‘Registered and Mothercraft Nurses’
- Part D ‘Enrolled Nurses’.
Part B common conditions section 25 special rates for Saturdays and Sundays
This section instructs that: 'All rostered time of ordinary duty performed between midnight on Friday and midnight on Sunday shall be paid for at the rate of time and a half'.
Therefore, any worker working during this time receives a rate of pay that is 50 per cent higher than hours outside this time. Such rates are commonly referred to as penalty rates. The extra 50 per cent, the penalty portion of the penalty rate, is paid in addition to the worker’s ordinary rate of pay and is considered a shift allowance.
It is clear that this allowance relates to the timing of the shift during ordinary duty. This shift allowance is paid for each hour that is worked.
Part C registered and mothercraft nurses section 43.6 shift allowance
This section instructs that: 'a rostered employee whose hours of duty finish between 6.00pm and 8.00am or commence between 6.00pm and 6.30am shall be paid an amount equal to 2.5% of the rate for Registered Nurse Nurse means a person registered under the Health Practitioner Regulation National Law to practise in the nursing and midwifery profession as a nurse (other than as a midwife or as a student) Grade 1 …per rostered period of duty'.
This section shows the times at which the shift allowance is to apply and there is no doubt that this allowance relates to the timing of the shift during ordinary duty. This allowance is paid each time a particular shift is worked.
Part D enrolled nurses section 61.1 shift allowance
The shift allowances in this section are a little more complicated than those above. However, the section instructs that: 'an employee whose rostered hours of ordinary duty finish between 6.00pm and 8.00am or commence between 6.00pm and 6.30am shall be paid 2.5% of the allowance rate per rostered period of duty'.
This section makes clear the times when the shift allowance is to apply and there is no doubt that the allowance relates to the timing of the shift during ordinary duty. The allowance is paid each time a particular shift is worked.
This example demonstrates why it is important to examine the claimed allowances against the entire award. Keep in mind the general meaning of a shift allowances, rather than relying on the award to list all shift allowances under a single heading.