AN160290 – Sheet Metal Workers' Award No. 10 of 1973
(1) Each employee shall be paid the appropriate rate shown in Clause 6. - Wages of this award. Subject to subclause (2) of this clause payment shall be pro rata where less than the full week is worked.
(2) From the date that a 38 hour week system is implemented by an employer wages shall be paid as follows:
(a) Actual 38 ordinary hours
In the case of an employee whose ordinary hours of work are arranged in accordance with subparagraph (i) or (ii) of paragraph (a) of subclause (3) of Clause 5. - Hours of this award so that the employee works 38 ordinary hours each week, wages shall be paid weekly or fortnightly according to the actual ordinary hours worked each week or fortnight.
(b) Average of 38 ordinary hours
Subject to subclauses (3) and (4) hereof, in the case of an employee whose ordinary hours of work are arranged in accordance with subparagraphs (iii) or (iv) of paragraph (a) of subclause (3) of Clause 5. - Hours of this award, so that the employee works an average of 38 ordinary hours each week during a particular work cycle, wages shall be paid weekly or fortnightly according to a weekly average of ordinary hours worked even though more or less than 38 ordinary hours may be worked in any particular week of the work cycle.
SPECIAL NOTE - Explanation of Averaging System
As provided in paragraph (b) of this subclause an employee whose ordinary hours may be more or less than 38 in any particular week of a work cycle, is to be paid the wage on the basis of an average of 38 ordinary hours so as to avoid fluctuating wage payments each week. An explanation of the averaging system of paying wages is set out below:
(i) Clause 5. - Hours in subclause (3) paragraph (a) placita (iii) and (iv) provides that in implementing a 38 hour week the ordinary hours of an employee may be arranged so that the employee is entitled to a day off, on a fixed day or rostered day basis, during each work cycle. It is in these circumstances that the averaging system would apply.
(ii) If the 38 hour week is to be implemented so as to give an employee a day off in each work cycle this would be achieved if, during a work cycle of 28 consecutive days (that is, over four consecutive weeks) the employee's ordinary hours were arranged on the basis that for three of the four weeks the employee worked 40 ordinary hours each week and in the fourth week worked 32 ordinary hours. That is, the employee would work for 8 ordinary hours each day, Monday to Friday inclusive for three weeks and 8 ordinary hours on four days only in the fourth week - a total of 19 days during the work cycle.
(iii) In such a case the averaging system applies and the weekly wage rates for ordinary hours of work applicable to the employee shall be the average weekly wage rates set out for the employee's classification in Clause 6. - Wages of this award, and shall be paid each week even though more or less than 38 ordinary hours are worked that week.
In effect, under the averaging system, the employee accrues a "credit" each day the employee works actual ordinary hours in excess of the daily average which would otherwise be 7 hours 36 minutes. This "credit" is carried forward so that in the week of the cycle that the employee works on only four days, the actual pay would be for an average of 38 ordinary hours even though, that week, the employee works a total of 32 ordinary hours.
Consequently, for each day an employee works 8 ordinary hours the employee accrues a "credit" of 24 minutes (0.4 hours). The maximum "credit" the employee may accrue under this system is 0.4 hours on 19 days; that is, a total of 7 hours 36 minutes.
(iv) As provided in subclause (3) of this clause, an employee will not accrue a "credit" for each day the employee is absent from duty other than on annual leave, long service leave, holidays prescribed under this award, paid sick leave, workers' compensation or bereavement leave.
(3) Absences from Duty
(a) An employee whose ordinary hours are arranged in accordance with subparagraph (iii) or (iv) of paragraph (a) of subclause (3) of Clause 5. - Hours of this award and who is paid wages in accordance with paragraph (a) of subclause (2) hereof and is absent from duty (other than on annual leave, long service leave, holidays prescribed under this award, paid sick leave, workers' compensation or bereavement leave) shall, for each day the employee is so absent, lose average pay for that day calculated by dividing the employee's average weekly wage rate by 5.
An employee who is so absent from duty for part of a day shall lose average pay for each hour the employee is absent by dividing the employee's average daily pay rate by 8.
(b) Provided when such an employee is absent from duty for a whole day the employee will not accrue a "credit" because the employee would not have worked ordinary hours that day in excess of 7 hours 36 minutes for which the employee would otherwise have been paid. Consequently, during the week of the work cycle the employee is to work less than 38 ordinary hours the employee will not be entitled to average pay for that week. In that week, the average pay will be reduced by the amount of the "credit" the employee does not accrue for each whole day during the work cycle the employee is absent.
The amount by which an employee's average weekly pay will be reduced when the employee is absent from duty (other than on annual leave, long service leave, holidays prescribed under this award, paid sick leave, workers' compensation or bereavement leave) is to be calculated as follows:
Total of "credits" not accrued during cycle |
X |
average weekly pay 38 |
Examples
(An employee's ordinary hours are arranged so that the employee works 8 ordinary hours on five days of each week for 3 weeks and 8 ordinary hours on four days of the fourth week).
1. Employee takes one day off without authorisation in first week of cycle.
Week of Cycle |
Payment | |
1st week |
= |
average weekly pay less one day's pay (ie. 1/5th) |
2nd and 3rd weeks |
= |
average weekly pay each week |
4th Week |
= |
average pay less credit not accrued on day of absence |
= |
average pay less 0.4 hours x average weekly pay 38 |
2. Employee takes each of the 4 days off without authorisation in the 4th week.
Week of Cycle |
Payment | |
1st, 2nd and 3rd weeks |
= |
average pay each week |
4th week |
= |
average pay less 4/5ths of average pay for the four days absent less total of credits not accrued that week |
= |
1/5th average pay less 4 x 0.4 hours xaverage weekly pay 38 | |
= |
1/5th average pay less 1.6 hours xaverage weekly pay 38 |
(4) Alternative Method of Payment
An alternative method of paying wages to that prescribed by subclauses (2) and (3) of this clause may be agreed between the employer and the majority of the employees concerned.
(5) Day Off Coinciding with Pay Day
In the event that an employee, by virtue of the arrangement of the employee's ordinary working hours, is to take a day off duty on a day which coincides with pay day, such employee shall be paid no later than the working day immediately following pay day. Provided that, where the employer is able to make suitable arrangements, wages may be paid on the working day preceding pay day.
(6) Payment by cheque or electronic fund transfer.
Where an employee and the employer agree, the employee's wages may be paid by cheque or direct transfer into the employee's bank (or other recognised financial institution) account. Notwithstanding this provision, if the employer and the majority of employees agree, all employees may be paid their wages by cheque or direct transfer into an employee's bank (or other recognised financial institution) account.
(7) Termination of Employment
An employee who lawfully leaves the employment or is dismissed for reasons other than misconduct shall be paid all moneys due at the termination of service with the employer.
Provided that in the case of an employee whose ordinary hours are arranged in accordance with subparagraph (iii) or (iv) of paragraph (a) of subclause (3) of Clause 5. - Hours of this award and who is paid average pay and who has not taken the day off due to the employee during the work cycle in which the employment is terminated, the wages due to that employee shall include a total of credits accrued during the work cycle as detailed in the Special Note following paragraph (b) of subclause (2) of this clause.
Provided further, where the employee has taken a day off during the work cycle in which the employment is terminated, the wages due to that employee shall be reduced by the total of credits which have not accrued during the work cycle.
(8) Details of Payments to be Given
Where an employee requests the employer to state in writing with respect to each week's wages the amount of wages to which the employee is entitled, the amount of deductions made therefrom, the net amount being paid, and the number of hours worked, the employer shall do so not less than two hours before the employee is paid.
(9) Calculation of Hourly Rate
Except as provided in subclause (3) of this clause the ordinary rate per hour shall be calculated by dividing the appropriate weekly rate by 38.
