Overtime pay

Overtime is work performed outside the ordinary hours listed in an award or agreement. Overtime is usually paid at a higher rate.

The details about when overtime applies are different under each award and registered agreement. To find out when overtime applies in your industry see When overtime applies.

To calculate overtime rates use our Pay Calculator

You can also find information about pay under your relevant award by visiting our Pay guides page.

Time off instead of overtime pay

Some awards and registered agreements allow time off to be taken instead of being paid overtime pay. This is also known as 'time in lieu', 'time off in lieu' or 'TOIL'.

Find more information about taking time off instead of overtime pay in your award by selecting from the list below.

Retail Award

Based on what you've told us, it looks like you're covered by the General Retail Industry Award 2010 [MA000004].

An employee can take time off instead of being paid for overtime if their employer agrees.

An employer can't force or pressure an employee to take time off instead of being paid for overtime.

Taking the time off

An employee gets the same amount of time off as the rate of overtime they would have been paid. This means that:

  • for each hour of overtime worked at time and a half, an employee gets 1 and a half hours time off
  • for each hour of overtime worked at double time, the employee gets 2 hours off.

The time off has to be taken within 6 months of working the overtime and at a time (or at more than one time) that the employer and employee agree to.

If the employee doesn't take the time off within 6 months of working the overtime, their employer has to pay them the overtime that would have applied in their next pay cycle.

At any point before the time off is taken, the employee can request to be paid the overtime instead and the employer has to pay it in the next pay period.

Ending employment

If an employee has accumulated time off instead of being paid overtime and their employment ends before they take it, the employer has to pay them the overtime that would have applied.

To find out more about who this award applies to, go to the Retail Award summary.

Source reference: General Retail Industry Award [MA000004] clause 29.3 external-icon.png

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