AN170120 – Metal and Engineering Industry Award
(a) Payment of wages shall be made on a nominated day either weekly or fortnightly or as agreed between the employer and the employee in writing.
(b) (i) Wages may be paid weekly or fortnightly according to the actual ordinary hours worked each week or fortnight; or
(ii) In the circumstances where an employee works an average of 38 hours per week, wages may 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 cycle.
Special Note - Explanation of Averaging System
As provided in this paragraph an employee whose ordinary hours may be more or less than 38 in any particular week of a work cycle, is to be paid their wages 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.
(c) The ordinary hours of an employee may be arranged so that they are 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 may apply.
(d) If the 38-hour week is to be implemented so as to give an employee a rostered leisure 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 worked 40 ordinary hours each week and in the fourth week worked 32 ordinary hours. That is, they would work for eight ordinary hours each day, Monday to Friday inclusive for three weeks and eight ordinary hours on four week-days in the fourth week - a total of 19 days during the work cycle.
(e) In such a case the averaging system may apply 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 Part III - Wages and Related Matters, Clause 1 – Wage Rates, 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, their 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 eight 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 of 19 days - that is, a total of seven hours 36 minutes.
(f) Absences from Duty
An employee whose ordinary hours of work are arranged in accordance with Part V - Hours of Work, Penalty Payments and Overtime, Clause 1 - Hours of Work and who is paid wages in accordance with subclause (f) hereof and is absent from duty other than on annual leave, long service leave, holidays with pay, paid sick leave, workers compensation, bereavement leave or jury service shall, for each day the employee is so absent lose average pay for that day calculated by dividing the employees average weekly wage rate by five.
An employee who is so absent from duty for part of a day shall lose average pay for each hour or part thereof the employee is absent at an hourly rate calculated by dividing the employees' average daily pay rate by eight, and for each hour or part thereof, the credit will not accrue.
(g) Method of Payment of Wages
An employer and employee may, by mutual agreement, have wages paid by cash, cheque or direct transfer into an employee's bank (or other recognised financial institution) account. Notwithstanding this provision, if the employee and the majority of employees mutually agree, all employees may be paid their wages by cash, cheque or direct transfer into an employees' bank (or other recognised financial institution) account, provided that in the case of employees paid by cheque, the employer shall, on pay day, if it is required by the employee, have a facility available during ordinary hours for the 'encashment' of the cheque.
(h) Payment of Wages in Cash
Subject to subclause (h) hereof, wages paid in cash shall be paid during ordinary working hours and if an employee is kept waiting for their wages on pay day after the usual time for ceasing work, they shall be paid their ordinary rate of wages for the period they are kept waiting.
PROVIDED that employees kept waiting for more than 15 minutes shall be paid at overtime rates from that point.
(i) Day Off Coinciding with Pay Day
In the event that an employee, by virtue of the arrangement of their ordinary working hours, is to take a day off 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.
(j) Payment During First Week of Employment
On the first pay day occurring during employment an employee shall be paid whatever wages are due up to the completion of work on the previous day.
PROVIDED that this subclause shall not apply to employers who make a practice of allowing advances approximating wages due.
(k) Payment on Termination of Employment
Upon termination of the employment subject to Part II - Employment Relationship and Associated Matters, Clause 1 - Contract of Employment wages due to an employee shall be paid on the day of such termination or forwarded to the employee by post on the next working day.
PROVIDED that in the case of an employee whose ordinary hours are arranged in accordance with Part V - Hours of Work, Penalty Payments and Overtime, Clause 1 - Hours of Work, subclause (b) paragraphs (iii) and (iv) and who is paid average pay and who has not taken the day off during the work cycle in which their employment is terminated, the wages due to that employee shall include the total of credits accrued during the work cycle as detailed in the special note following subclause (b) paragraph (ii) of this clause.
PROVIDED FURTHER where the employee has taken a day off during the work cycle in which their 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.
(l) Details of Payments to be Given
On or prior to the employees pay day, the employer shall state to each of them in writing the amount of wages to which they are entitled, the amount of each deduction made therefrom, and the net amount being paid to them.
(m) Calculation of Hourly Rate
Except as provided in subclause (b) paragraph (i) of this clause, hourly rates shall be calculated by dividing the appropriate weekly rate by 38.
