WORKPLACE RELATIONS
WHAT YOU NEED TO KNOW ABOUT TIME OFF INSTEAD OF PAYMENT FOR OVERTIME Some private practices prefer to use a ‘Time off instead of payment for overtime’ arrangement, (commonly known as “time off in lieu” or TOIL) but did you know that there are specific obligations under the awards that cover employees working in private practice, that as an employer you are required to meet?
IF YOU USE TIME OFF IN LIEU arrangements at your practice, you need to make sure you comply with these obligations. Time off instead of payment for overtime needs to be by agreement A time off instead of payment for overtime arrangement needs to be agreed between the employer and employee. The arrangement needs to be a genuine agreement between both parties. The employer must not exert undue influence or pressure on the employee in relation to a decision by the employee to make, or not make, an agreement to take time off instead of payment for overtime. 32 I THE NSW DOCTOR I WINTER 2024
Health Professionals and Support Services Award 2020 (HPSSA) For those covered under the Health Professionals and Support Services Award 2020 (HPSSA), the agreement needs to be in writing and the subject of a separate agreement for each occasion that time off is granted instead of the payment of overtime. You will need a separate written agreement each time. The agreement must state: 1. the number of overtime hours to which it applies and when those hours were worked; 2. that the employer and employee agree that the employee may take time off instead of being paid for the overtime; 3. that if the employee requests payment at any time, the employer must pay the employee for overtime covered by the agreement but not taken as time off, at the overtime rate applicable to the overtime when worked;
4. that any payment, (requested by the employee as above) must be paid in the next pay period following the request. Schedule G within the HPSSA includes an agreement form that you may wish to use as an ‘Agreement for Time off instead of payment for overtime’. There is no requirement to use this form of agreement. An exchange of emails between employee and employer or other electronic means is also acceptable, provided it includes all the required information. The employer must keep a copy of any agreements for time off instead of payment for overtime as part of the employee’s records.
Nurses Award 2020 Under the Nurses Award an employee and employer may agree to the employee taking time off instead of being paid for overtime that has been worked by the employee. However, unlike the HPSSA the Award does not specify the need for a separate written agreement on each occasion. How is the time off to be taken? Under the HPSSA, the time that an employee is entitled to take off is the same as the number of overtime hours worked. For employees covered by the Nurses Award, the time that an employee is entitled to take off is equivalent to the overtime payment