What is “reasonable” overtime?

According to the Fair Work Act 2009, employees in Australia are entitled to receive payment for any overtime work they do. In Australia, no set amount of overtime is considered reasonable, as it can vary depending on the industry, type of job, and specific circumstances. Still, the specifics of overtime pay and arrangements are typically agreed upon between the employer and the employee or outlined in an award or enterprise agreement.

In general, it’s considered reasonable for employees to work a reasonable amount of overtime if it is reasonable to expect the employee to do so, taking into account their personal circumstances and the needs of their employer. Reasonable overtime may include occasional overtime work outside of normal hours as long as it is not excessive and does not unduly impact the employee’s health and well-being.

It’s important to remember that while overtime may be required in some circumstances, it should not be excessive and should not be relied on as a regular feature of an employee’s work arrangements.

To satisfy Fair Work requirements, a number of factors must be taken into account in determining whether additional hours are reasonable. Here is your handy checklist:
• Risks to health and safety
• Employee’s personal circumstances
• Relevant needs of the workplace
• Entitlement to receive additional compensation
• Was notice given by the employer of the request/requirement?
• Did the employee give notice of their intention to refuse to work the additional hours?
• Usual patterns of work in the industry
• Nature of the employee’s role/level of responsibility
• Were the additional hours in accordance with averaging terms?

If you are a full-time employee – you should generally work 38 hours per week. Additional hours may be reasonable, especially when the request or requirement to do so is ad hoc and infrequent. Plus, if you receive significant remuneration and other benefits (like a senior manager), then with the nature of your role and level of responsibility, it may be sufficient that additional hours are reasonable in most cases.

Additional hours an employee is required to work may also be reasonable if the hours are performed at a particular time and in a particular manner in order to meet the employer’s operational requirements (e.g. end of the financial year if finance reports are due).

Leave a comment