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Time off over remuneration? Changes to time-off-in-lieu of overtime provisions

The Fair Work Commission (FWC) has developed a clause which will allow employees to claim one hour of time off per hour of overtime worked.

The Australian Industry Group (Ai Group) has convinced a Full Bench of the FWC to “extend time-off-in-lieu (TOIL) of overtime provisions throughout the award system,” Ai Group Chief Executive Innes Willox said.

“The decision will allow many thousands of workers who do not currently have access to TOIL to reach agreement with their employer to take time off rather than being paid for overtime,” Mr Willox said.

Ai Group initiated the case in recognition of the fact that many employees value time off over additional remuneration. The clause will not go so far as to allow time off equivalent to overtime penalty rates.

“A large number of employees value time off more than additional remuneration, particularly those employees with caring responsibilities,” Mr Willox said.

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Daniel Jacobs

Daniel Jacobs

Daniel Jacobs was editor of Dynamic Business.

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