Workers who work under a funding agreement and work over a one-week period must receive at least 32 consecutive hours of work each week. A worker has the option of paying statutory leave allowance if he has worked 30 calendar days and worked in the 30 days prior to the statutory holiday as part of a funding agreement. The standard work day (for the purposes of the law) is 8 hours and the standard work week is 40 hours. In the absence of an average overtime agreement, employers must pay overtime rates for the overspend of the normal day and normal week. Under a funding agreement, workers who work eight hours or more per day must receive 1.5 times the worker`s normal wage only for hours worked during scheduled hours up to 12 hours. It also means that a worker who has to work up to 12 hours a day is not entitled to overtime pay under a funding agreement. However, the existence of an average overtime agreement does not completely eliminate the obligation to pay at the overtime rate. Employers have to pay… Do overtime rates apply to an employee who works under a funding agreement? This depends on both the number of hours scheduled and the number of hours worked.
Under a funding agreement, an employee may work up to 12 hours a day without attracting overtime. For example, an employee scheduled for a 4-hour shift may be subject to an investment agreement using a 2-week average cycle. During the 2-week average cycle, the employee may work an additional 10 hours per week, for a total of 100 hours per cycle. The employer would sometimes have to pay this worker for 20 hours above the 40-hour average during the average cycle. The last consideration is that workers subject to a middle class agreement must not meet the 15 working days of the previous 30-day test in order to qualify for the statutory leave allowance. Workers with a scholarship contract are entitled to a statutory leave allowance if they are employed in the 30 calendar days prior to the statutory holiday. For Family Day on February 13, 2017, workers with a resource contract would be entitled to a statutory leave allowance if they had a single working day between January 14 and February 12. Since the statutory leave allowance is the salary of the previous 30 calendar days, divided by the number of working days, a worker who worked only one day on January 16 would be entitled to those days to pay again for Family Day. Depending on the nature of working hours, a funding agreement may result in a substantial increase in statutory leave pay.
Staff members can apply in writing to move to their funding agreement, provided the total hours provided by the agreement remain the same. Hours can be used for cycles of 1, 2, 3 or 4 weeks. The number of hours can vary each day or week during the average cycle. However, the average weekly working time covered by the agreement must not exceed 40 hours. Where a worker is excluded by the Regulations of the Act and the regulations set overtime requirements to replace those listed on page 40, employers and workers can nevertheless enter into a funding agreement for the s.37.