Penalties and loadings differ from overtime in that they normally apply on a day by day basis and are calculated without regard to the pattern of worked hours established by an employee over an entire pay period:
- The payment method for penalties and loadings can be expressed as a percentage of the base pay rate, an amount additional to the base pay rate or a flat dollar amount
Example, the employee will receive a flat dollar amount of $28.75 per hour when the penalty condition applies.
- Use the Add and Remove buttons to create as many penalty/loading conditions as required. Penalties and loadings may be configured to apply penalty rates during specific hours on specific days of the week (including public holidays). The following basic types of penalties or loadings may be added:
- Shift Penalties & Loadings,
- Time Penalties & Loadings
- Length Penalties & Loadings.
Shift Penalties & Loadings
Shift penalties (or loadings) can be applied to the hours of shift workers who begin their shifts during specific periods in the day. Such workers are ordinarily referred to as early morning workers, morning workers, day workers, afternoon workers, evening workers or night workers.
- Shift penalties and loadings are configured by entering the period of time during which the penalty or loading applies:
Example, when an employee's shift begins between and 11 pm and 12 am on Monday through Friday, a shift penalty of time and three quarters will apply.
When an employee's shift begins between 10 pm and 12 am on Saturday, Sunday and Public Holidays, they will receive a shift loading of time and a half.
Penalties & Loadings Based on Specific Times of the Day
Time based penalties (or loadings) can be applied to employees who work during specific times of the day. Time based penalties and loadings are configured by entering the specific period during which an employee must work in order to receive the penalty or loading:
Example, for worked hours between 4 am and 8:30 am on Sundays or public holidays, a penalty payment of time and a half will apply. For worked hours between 9 am and midnight on Monday through Friday, a loading of time and three quarters will apply.
Penalties & Loadings Based on the Length of Hours Worked
Length based penalties (or loadings) can be applied to employees who work for an agreed number of hours on specific days of the week. Length based penalties and loadings are configured by entering the specific length of worked time (in hours) for which an employee receives the given penalty or loading:
Example, when worked hours are between 4 and 8.5 hours on Sundays or public holidays, a penalty payment of time and a half will apply. When total worked hours are between 9 and 12 hours on Monday through Friday, a loading of time and three quarters will apply.
Penalties & Loadings Based on Recall to Work (RTW)
Penalties and Loadings can be paid on time sheets that have the ’Recall to Work’ Special rate applied to them, meaning that an employee has been called back to work after finishing an earlier shift. If, for example, an employee has worked a morning shift and then is called back to work another shift, the role Recall to Work must be applied to that time sheet and penalties will apply.
See the section in Rates manager for setting up and using a rate for Recall to Work
Penalties & Loadings Based on Working an RDO
Penalties and Loadings can be applied to time sheets that are listed as worked on an RDO (rostered day off). If an employee has come to work on an RDO, the Administrator must set the role for the worked time sheet to RDO in order that the listed penalties can be applied.
Capping Penalty & Loading Hours
This feature allows the Administrator to enter the maximum hours for which the specified penalty or loading can be paid. If the hours are capped at two and the employee has worked six hours normally paid at penalty/loading rates, only 2 hours will be paid at the higher rate and the remaining 4 hours will be paid at the normal rate of 100%.
Pay Penalties on Public Holiday Leave when Ordinarily Worked
This option allows employees to receive payments of standard penalties on public holiday leave entries on which days they normally would have worked.