The 2018 Casual Loading Changes clarified how employers must handle casual employee entitlements, ensuring that casual loading payments can be offset against claims for permanent benefits. This regulation aimed to prevent “double-dipping” by employees and protect businesses from unexpected liabilities.
2018 Casual Loading Changes
These changes, expected to begin taking effect as of November 1st, will have an effect on casual workers’ pay rates on Saturday and after 6 pm Monday to Friday.
All work performed on a Saturday will incur an additional 15% pay, increasing overall loading to 135% of the base award rate and an increase of 5% for all work performed during the week after 6PM.
Over the next two years this will increase twice more, culminating in a 25% increase to their Saturday penalty rate on top of their withstanding 25% casual loading – a total of 150% of the base award rate.
This decision will affect over 350,000 retail workers and will look to offset the effect of last year’s choice to cut Sunday penalty rates for both casual and permanent employees.
Background of the 2018 Casual Loading Changes
- Introduced through the Fair Work Amendment (Casual Loading Offset) Regulations 2018.
- Designed to address cases where casual employees later claimed permanent entitlements (like annual leave or redundancy pay) in addition to casual loading.
- The regulation allowed employers to offset casual loading payments against such claims, ensuring fairness and compliance.
If you would like further information or require assistance calculating the correct pay rates for your employees contact us for assistance.