More workers entitled to negotiate time off in lieu of overtime pay

More workers will have the right to negotiate time off in lieu of overtime payments under Fair Work Commission ruling.

Australian Industry Group Chief Executive Innes Willox said the ruling could particularly benefit parents and other carers.

More workers will have the right to negotiate time off in lieu of overtime payments under a Fair Work Commission ruling that introduces more flexibility to the modern award.

The decision will allow thousands of workers who were not eligible for time off in lieu of overtime to arrange with their employer to have one hour off for every hour of additional time worked.

“The decision is a further important step in the right direction of freeing up the award system to remove barriers to employers and employees agreeing on workplace flexibilities of benefit to both parties,” Australian Industry Group Chief Executive Innes Willox said.

The AI Group argued in the case that a large number of employees value time off more than additional remuneration, particularly parents and other carers.

“Individual employees are in the best position to decide whether they value time off more than payment for overtime and it is not appropriate for awards to stop employee’s making this choice,” Mr Willox said.

The FWC preferred the ‘time for time’ model over the unions’ argument that time off earned should be equivalent to the overtime penalty rate, known as ‘time for penalty’, the AI Group said.

Awards with existing time for penalty” provisions will not be varied to reduce employees’ current entitlements but under the terms of the FWC’s decision over 90 per cent of awards will have time for time” arrangements.

“AI Group has devoted a lot of resources to this case over the past 12 months. When awards are varied to reflect the decision, the new arrangements will ensure that employees and employers have access to more flexible arrangements to meet their specific circumstances,” Mr Willox said.