The Law Handbook 2024

1062 Section 11: Rights, activism and fair treatment at work or award conditions is not effective unless expressly authorised by a section of the FW Act. 2 Overtime rates Where overtime may be required to be worked, the rate(s) of pay applicable to the overtime hours should be specified in the agreement. 3 Penalty rates Some consideration should be given to an additional loading if the hours worked are outside ordinary business hours. 4 Flexi-time or time in lieu As an alternative to overtime or penalty rates of pay, the parties may agree to some form of compensation for extra time worked beyond the agreed hours based on flexi-time or time in lieu . 5 Salary review Another aspect that should not be overlooked is some form of salary or wage review, unless it is agreed that the salary should be fixed for the term of the agreement. A scale of pay based on, for example, years of service, experience or acquired qualifications could be inserted (such as those in enterprise agreements or awards) to avoid the need for variation. The risk in linking pay increases to improving economic conditions, such as a change in the consumer price index, is that the economic condition specified may not improve at a desirable rate. 6 Accident make-up pay Changes to the workers compensation system (WorkCover) have substantially reduced the benefits payable to the majority of injured workers. Therefore, consideration should be given to make-up pay in the event that the employee is injured and placed on WorkCover. ‘Make-up pay’ is an amount making up all or some of the difference between the WorkCover payment and an employee’s normal earnings. 7 Allowances It is not uncommon for an employee to incur expenses in the course of their employment. Under the award system, these expenses were compensated for by way of an allowance. So, for example: • a meal allowance may be payable where an employee works extensive overtime; • a tool allowance may be payable where an employee uses their own equipment on the job – this allowance compensates the employee for the cost of maintaining and replacing their equipment; • a uniform or protective clothing allowance may be payable where an employee is required to purchase and/or maintain these items; • a travel allowance may be payable to compensate an employee for costs incurred when they are required to travel while carrying out duties on behalf of their employer; and • a vehicle allowance may be payable to com­ pensate for vehicle wear and tear where an employee uses their own vehicle while carrying out duties on behalf of their employer. An employee who is likely to incur similar expenses in the course of their employment should not take it for granted that their employer will reimburse these expenses, but should negotiate for specific payment to be included in the agreement. Allowances can be dealt with in two ways: 1 as a fixed amount per day, week or event; or 2 by agreement to reimburse for expenses incurred, most commonly on provision of an invoice. 8 Non-standard terms There is scope to include terms in contracts that are non-standard. For example, an employer may encourage its employees to ride bicycles to work, in which case a term of the agreement may be that the employer provides showers. Provided there is a connection between the content of the term and the employment relationship (and it is not otherwise prohibited content; for example, by breaching a provision of the FW Act), the term may be included. 9 Leave Any form of leave an employee thinks is desirable must be bargained for with the employer. This is the case unless the leave is a form of leave provided for under the NES or a form of leave that is included in an applicable award. There are many forms of leave, the significance and relevance of which vary according to the nature of the employment and the circumstances of the employee. For example, an employee may be a member of the CFA and live in a fire-prone area,