An agreement can include loaded rates of pay which compensate for benefits provided for in the relevant modern award. In circumstances where an award benefit is incorporated into the agreement hourly rate of pay, that rate will need to be increased to compensate for the removal of award benefits that would no longer apply.
In addition, the hourly rate of pay would need to reflect the work arrangements of an employee. For example, if an employee were to predominately work weekends, the employee's agreement rate of pay would have to be increased to take into consideration a greater proportion of weekend penalties to ensure that the employee was better off overall.
Benefits that can be incorporated into a loaded rate include:
- shift allowances
- weekend and public holiday penalties
- annual leave loading
- reasonable additional hours
- overtime – as well as overtime for work performed in addition to ordinary hours, instances where the agreement span of hours has been modified, the modern award generally applies overtime for work performed outside the span, which should be factored into the hourly rate, and
- work related allowances.