Overtime pay

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

When overtime applies

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 and Conditions Tool

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 an employee to take paid time off 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.

Vehicle Award

Based on what you've told us, it looks like you're covered by the Vehicle Repair, Services and Retail Award [MA000089].

An employee can take paid time off instead of being paid overtime, if they ask for it and the employer agrees to it in writing. This agreement must be kept as a time and wages record.

When time off is chosen, an employee has to get the same amount of time off as the rate of overtime they would have been paid.

The following types of employees are not entitled to time off instead of overtime pay:

  • employees mainly doing vehicle sales
  • driveway attendants, roadhouse attendance and console operators
  • working at fuel retailing establishments
  • casual employees.

The time off equal to overtime rates is:

  • time and a half = 1 ½ hours time off
  • double time rate = 2 hours time off
  • double time and a half (on public holidays only) = 2 ½ hours time off

Example: Equal time off to the rate of overtime (time and a half)

Drew works 3 hours of overtime that would have been paid at the rate of time a half.

This means that Drew is entitled to 4 ½ hours paid time off instead of getting paid overtime.

Taking the time off

The time off has to be:

  • taken within 4 weeks of working the overtime at a time that suits the employer and employee or
  • taken within 8 weeks of working the overtime at a time that suits the employer and employee, when the employee has arranged to bank up to 8 hours of overtime.

Overtime payments when ending employment

Any time off that accumulated instead of being paid as overtime has to be paid out at the overtime rate when employment ends. The entitlement will be paid out at the rate that applied at the time the overtime was worked.

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

Source reference: Vehicle Repair, Services and Retail Award [MA000089] clauses 24.1, 24.3 and 24.6 external-icon.png

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