Penalty rates

Penalty rates are extra pay under a modern award or enterprise agreement for unsocial hours — typically evenings, weekends, and public holidays. They are award-specific, not a single national overtime multiplier.

Penalty rates are extra pay under a modern award or enterprise agreement for unsocial hours — typically evenings, weekends, and public holidays.

They are award-specific. Do not invent a national Sunday rate or a national 1.5× overtime premium. Overtime (hours outside the ordinary span) and penalty rates (loadings for when the hours fall) can both appear in the same award, with different triggers. Casual loading is separate again: it is a loading on ordinary hours because the person is casual, not because the shift is on Saturday.

Hours of work, penalty rates, and public holidays sit under the Fair Work Act 2009 and the relevant modern award. Advance rosters and fair notice are good practice and may be required under an award or enterprise agreement.

Related: overtime, casual loading, national minimum wage, TOIL.

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