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Dear Sir/Madam
We sent you an update a few weeks ago regarding a change to the time off in lieu provisions in a number of Modern Awards. Click here to read our last time off in lieu (TOIL) update.
This update outlined a model clause inserted into a number of Awards that enables employers and employees to negotiate TOIL, rather than being paid for it.
The Fair Work Commission (FWC) has now decided that an additional eight Modern Awards will be changed to include the same TOIL clause. The Awards that have now been amended in the most recent set of changes are:
• Amusement, Events and Recreation Award 2010
• Hydrocarbons Industry (Upstream) Award 2010
• Mining Industry Award 2010
• Mobile Crane Hiring Award 2010
• Oil Refining and Manufacturing Award 2010
• Ports, Harbours and Enclosed Water Vessels Award 2010
• Professional Diving Industry (Industrial) Award 2010 – for inshore divers only
• Salt Industry Award 2010
What do the changes mean?
The changes take effect from the first full pay period that starts on or after 16 September 2016.
The clause allows employers and employees to agree to take TOIL on a time for time basis (ie if you work an hour of overtime, you get to take an hour off).
If you and your employee agree to TOIL, you will need a written agreement containing specific requirements summarised below.
• A separate written agreement must be made for each pay period in which overtime is going to be taken as TOIL and these agreements must be kept as an employee record
• The TOIL must be taken within six months of the overtime being worked
• If the TOIL is not taken within six months, or the employee makes a request for payment, this must then be paid in the next pay period at the applicable overtime rate
• On termination, you must pay out any TOIL not taken at the applicable overtime rate
What do I need to do?
If your Employee Handbook contains a TOIL policy and your business or employees are covered by one of the Modern Awards listed above, please contact our Advice team on 1300 651 415 to discuss whether any changes need to be made to your policy or processes. If so, we will explain the changes required and prepare any agreements or documents.
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