Following the ARA’s application to vary the General Retail Industry Award (GRIA) in February 2024, the Fair Work Commission (FWC) last week released determinations to vary clauses 21.2 & 15.7 (c) of the GRIA, to address overtime and rostering ambiguity.
Consistent with the ARA’s proposal, clause 15.7(c) has been varied to secure more flexible rostering provisions sought by members. Also, largely consistent with our proposal, clause 21.2 has been varied, with slight amendments to the ARA’s proposal made by the FWC, to secure greater clarity in relation to the application and quantum of overtime rates of pay.
These amendments remove uncertainty in determining overtime and promote greater flexibility in rostering practices. This outcome could not have been achieved without constructive collaboration with the Shop, Distributive and Allied Employees’ Association, and other employer groups including the National Retail Association and Ai Group.
These improvements are reflective of the ARA’s commitment to change the GRIA in a constructive manner and provide some confidence that we will secure additional wins on some of our remaining proposals.
In alignment with the FWC determinations, these variations will come into operation on 5 July 2024. However, the determination does not take effect in relation to a particular employee until the start of the employee’s first full pay period that starts on or after 5 July 2024.
Clarifying overtime provisions
As proposed by the ARA, clause 21.2 will be varied to provide greater clarity, restructuring the original paragraphs within clause 21.2 into a table with clear expressions as to when overtime is applicable, with relative headings for full-time, part-time and casual employees.
This amendment also clarifies that overtime is payable to full-time and part-time workers when working outside the span of ordinary hours subject to clause 15.2. It also clarifies that overtime is not payable for casual employees engaging in shiftwork and working outside the span of ordinary hours on that basis as shown by the inclusion of the wording ‘(excluding shiftwork)’.
These variations enhance award useability for employers and employees, minimising the potential for non-compliance with the overtime provisions.
Providing greater rostering flexibility
The variation to clause 15.7(c) achieves greater rostering flexibility for employees and employers, providing that an employee can be rostered to work ordinary hours 6 days in one week, and 4 days in the other, per any two-week cycle. This change secures significant benefits for retailers seeking to flexibly roster employees to work ordinary hours 6 days in one week, and less in the next, or the other way round, per two-week cycle.
These changes to the award also follow our previous wins afforded by the Full Bench of the FWC relative to ARA’s application to vary the GRIA, which secured the amendment of clause 16.6 and 15.2 (c) of the GRIA previously. The ARA’s ongoing effort to reform the GRIA for enhanced clarity for retailers continues, and we remain vigilant in securing the changes that retailers seek.
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The following changes have been made to the GRIA in relation to overtime provisions.
Delete clauses 21.2(a), 21.2(b) and 21.2(c) and insert a new clause 21.2 (a) as per below. In addition, table references and references to clauses 21.2(a) have been amended through GRIA as appropriate.
21.2 Payment of overtime
(a) An employer must pay an employee overtime for hours worked in accordance with Table 10 – Application of overtime:
Table 10 – Application of overtime
| Column 1 Type of employment |
Column 2 When an employer must pay overtime |
| Full-time employee | Overtime is payable for hours worked:
|
| Part-time employee | Overtime is payable for hours worked:
|
| Casual employee | Overtime is payable for hours worked:
|
| Variation N: Rostering Arrangements |
Clause 15.7(c) will be amended to read:
The employer may roster an employee to work ordinary hours on 6 days in one week per two week cycle, provided that in the other week in that cycle the employee is rostered to work ordinary hours on no more than 4 days.
Any questions about these changes can be directed to the ARA Employment Relations team at membership@retail.org.au, or 1300 368 041.
