A general overview of the Clerks Private Sector Award

The Clerks Private Sector Award 2020 applies to a broad range of administrative roles within various industries, covering employees engaged in clerical work and office management tasks. This award outlines the minimum standards for wages, working conditions, and entitlements, ensuring that clerical employees receive fair compensation for their administrative skills and contributions.

In this article, we provide a concise summary of the key aspects of the Clerks Award, including coverage, employment classifications, rostering guidelines, pay rates, allowances, superannuation obligations, and leave entitlements. Understanding these provisions is key to maintaining compliance with legal requirements and fostering fair and consistent employment practices in your workplace.

For more detailed information on each topic, you'll find links throughout this article that direct you to comprehensive resources.

Note: The information provided in this article is accurate as of 14/08/2024. As award conditions and rates are subject to change, please refer to the latest version of the Clerks Private Sector Award 2020 for the most current information.

Clerks Private Sector Award coverage

The Clerks Award covers an array of clerical and administrative roles across various industries. Below, you can find an overview of who is and isn't covered by this award:

Who's covered

This award applies to employees performing office-based tasks, including data entry operators, receptionists, administrative assistants, call centre and customer support assistants, and payroll officers. 

On-hire employees, such as contract admin workers, data processors, and agency receptionists, as well as trainees in business administration, clerical work, and HR support, are also covered under the Clerks Award.

Who isn't covered

The Clerks Award doesn’t cover every clerical role. Here are some exclusions:

• Employees covered by alternate awards that include clerical classifications: For instance, clerical workers in the hospitality industry may be covered by the Hospitality Award.
• Employees excluded by the Fair Work Act: Such as senior managers or high-income employees.
• Employees covered by an enterprise bargaining agreement (EBA): For example, those working for a large retail company with a specific enterprise agreement.
• Employees under a state reference public sector modern award or transitional award: Such as public sector employees in state government departments.
• Employers in relation to employees mentioned above: For instance, government agencies under the Public Service Award.
• Employers and employees covered by other industry-specific awards: Like clerical staff covered by the Aged Care Award or the Health Professionals and Support Services Award.

Practical example: Sarah works as an administrative assistant for a private company, managing schedules and preparing documents. Since her role involves clerical duties in the private sector, she’s covered by the Clerks Private Sector Award, ensuring she receives the appropriate wages and working conditions specific to her field.

Learn more about Clerks Award coverage

Employment types and ordinary hours under the Clerks Private Sector Award

The Clerks Award categorises employment into three main types, each with specific guidelines for managing ordinary hours:

• Full-time: These employees typically work 38 hours per week under ongoing contracts, offering job security and predictable schedules. These hours can be averaged over a four-week period or an agreed roster cycle.
• Part-time: These employees work fewer hours, as specified in their contracts. They enjoy the same job security as full-time employees and receive benefits proportional to their hours worked. A consistent work schedule must be agreed upon in writing before starting the role.
• Casual: These employees are hired on an as-needed basis with no guaranteed hours. They receive a higher hourly rate to compensate for the lack of regular hours and job security, with a minimum engagement of three hours per shift.

These provisions ensure fair and consistent working conditions across all employment types under the Clerks Award, promoting flexibility and compliance within clerical and administrative roles.

Rostering under the Clerks Private Sector Award

The Clerks Award sets out structured guidelines to ensure fair and efficient roster management, tailored to the needs of clerical and administrative employees. These provisions help employers create predictable and compliant work schedules while also accommodating the flexibility that modern workplaces require.

Roster management

• Regular and predictable hours: Full-time and part-time employees must have their ordinary hours agreed upon in writing before starting. Hours should be regular and predictable.
• Notice periods: Any changes to work hours or start and finish times must be agreed upon in writing. Employers must give seven days' notice before changing the specific days an employee works.
• Rostered days off: Employees can work longer hours on certain days in exchange for rostered days off. Employers must provide four weeks' notice for these days off. Employees can also bank up to five days off, to be taken later with at least five days' notice.
• Roster flexibility: The award allows for flexibility in rostering to meet the needs of both the business and employees. Variations to work hours can be agreed upon between the employer and employee.
• Flexible working requests: Employees can request flexible working arrangements for reasons such as family responsibilities. Employers must consider these requests in line with the National Employment Standards (NES) and can only deny them on reasonable business grounds.

Breaks and rest periods

The Clerks Award provides for meal and rest breaks to ensure adequate rest. Employees working over five hours get a 30 to 60-minute unpaid meal break, with a 200% pay rate if they work through it. Those working three to eight hours receive a 10-minute paid rest break, while shifts over eight hours get two.

Employees working more than four hours of overtime on a Saturday morning also get a 10-minute paid break. With employer agreement, two rest breaks can be split around the unpaid meal break and are considered time worked.

Learn more about Clerks Award employment types, ordinary hours, and rostering

Clerks Private Sector Award pay rates

The Clerks Award establishes clear minimum wage rates for various clerical and administrative roles. For example, a Level 1, Year 1 adult employee earns $910.90 per week, while a Level 2, Year 1 employee receives $995.00 per week. Part-time employees are paid the corresponding minimum hourly rate, and casual employees receive a 25% loading on top of that rate.

Employers must ensure wages are paid either weekly, fortnightly, or monthly, as agreed upon with employees, with detailed payslips provided. Upon termination, employers are required to settle all outstanding wages and entitlements within seven days, in line with the Fair Work Act 2009.

See full list of Clerks Private Sector Award pay rates

Allowances under the Clerks Private Sector Award

The Clerks Award provides a range of allowances to ensure fair compensation for additional duties and work-related expenses. For example, employees using their personal vehicles for work are entitled to a vehicle allowance of $0.95 per kilometre for cars and $0.32 per kilometre for motorcycles, up to 400 kilometres per week. Those required to purchase uniforms or protective clothing are reimbursed for the cost, with an additional $3.55 per week for laundering uniforms for full-time employees.

Employees working more than 1.5 hours of overtime without 24 hours' notice receive a meal allowance of $18.23 for the first meal, with an additional $14.60 if overtime exceeds four hours. Shift workers without reasonable transport options for abnormal start or finish times are reimbursed for the cost of a commercial passenger vehicle between home and work. These are just some of the allowances provided under the Clerks Award, which are regularly updated to reflect changes in the cost of living.

See full list of Clerks Private Sector Award allowances

Clerks Private Sector Award superannuation

The Clerks Award requires employers to contribute 11.5% of an employee's ordinary time earnings (OTE) to superannuation. Contributions are mandatory for employees over 18, and for those under 18, working more than 30 hours a week. Employees can choose their super fund, but if no choice is made, employers must use a stapled fund or an approved fund like CareSuper or AustralianSuper.

Voluntary post-tax contributions are allowed, with changes permitted after three months' notice. Employers must pay these within 28 days of the month's end. Contributions continue during paid leave and for up to 52 weeks during work-related injury or illness if the employee remains employed.

Accurate identification of OTE is crucial for proper super calculations. Employees earning less than $450 before tax in a month typically aren't entitled to super contributions. Always refer to the Award and Fair Work Commission guidelines for the latest information.

Clerks Private Sector Award overtime and penalty rates

The Clerks Award outlines clear guidelines for compensating employees who work beyond their regular hours or during unsociable times:

Overtime rates

Overtime is paid when employees work beyond their ordinary weekly hours, more than 10 hours in one day, outside the spread of ordinary hours, or on a rostered day off that isn’t substituted or banked. Overtime rates are:

• Monday to Saturday (first 2 hours): 150% of the minimum hourly rate (175% for casuals).
• Monday to Saturday (after 2 hours): 200% of the minimum hourly rate (225% for casuals).
• Sunday: 200% of the minimum hourly rate (225% for casuals).
• Public holidays: 250% of the minimum hourly rate (275% for casuals).

Practical example: Mark, a full-time administrative assistant with a regular hourly rate of $30, worked an additional six hours beyond his regular 38-hour workweek. On Tuesday, he worked two hours of overtime, which was paid at 1.5 times his hourly rate, earning him $90. Later in the week, Mark worked four hours of overtime on Saturday, which was paid at double his hourly rate, adding $240 to his pay. In total, Mark earned $330 in overtime pay for the week.

Employees can opt for time off in lieu of overtime pay, with time off to be taken within six months. If not taken, the employer must pay for the overtime.

Penalty rates

Penalty rates apply to work performed outside of ordinary hours, ensuring fair compensation:

• Saturday: 125% of the minimum hourly rate (150% for casuals).
• Sunday: 200% of the minimum hourly rate (225% for casuals), with a minimum of 4 hours' pay.
• Public holidays: 250% of the minimum hourly rate (275% for casuals), with a minimum of 4 hours' pay.

Practical example: Emma, a full-time employee with a minimum hourly rate of $25, worked five hours on a Sunday. Since Sunday work is compensated at 200% of her regular rate, she earned $250 for those five hours. 

Learn more about Clerks Private Sector Award overtime and penalty rates

Clerks Private Sector Award leave entitlements and public holidays

The Clerks Award provides comprehensive leave entitlements and public holiday provisions, aligned with the NES.

Annual leave

Full-time employees are entitled to four weeks of annual leave each year, with part-time employees accruing leave on a pro-rata basis. A 17.5% leave loading applies. If excessive leave accrues, employers and employees should agree on reducing it, with the option for employers to direct leave if necessary.

Other types of leave

Other leave types include 10 days of paid personal/carer’s leave, two days of compassionate leave per occasion, up to 12 months of unpaid parental leave (with an option to extend for another 12 months), unpaid community service leave, and 10 days of unpaid family and domestic violence leave annually.

Public holidays

For public holidays, employees (excluding casuals) are entitled to a paid day off. Employers can request work on a public holiday if reasonable, with appropriate penalty rates applied. Employers and employees can also agree to substitute another day for a public holiday.

Learn more about Clerks Private Sector Award leave entitlements

Shiftwork under the Clerks Private Sector Award

Shiftwork under the Clerks Award involves working outside standard business hours, including afternoon, night, and permanent night shifts, as well as weekends and public holidays. Key points include:

• Shift types: Afternoon shifts end between 7:00 PM and midnight, night shifts between midnight and 7:00 AM, and permanent night shifts are continuous for more than four weeks.
• Overtime rates: Overtime is paid at 150%-200% of the minimum hourly rate, with higher rates for weekends and public holidays.
• Time off instead of overtime: Employees can agree to take time off instead of pay, with time off taken within six months.
• Rest period: Employees must have an eight-hour rest between shifts; otherwise, they’re paid at double time until rest is granted.
• Penalty rates: Afternoon and night shifts receive a 115% penalty rate, permanent night shifts 130%, and weekend/public holiday shifts 150%.
• Additional leave: Shiftworkers regularly rostered on Sundays and public holidays may receive an additional week of paid annual leave.

Learn more about Clerks Private Sector Award shiftwork

Key considerations for the Clerks Private Sector Award

Understanding the specific provisions of the Clerks Award is essential for maintaining compliance and ensuring fair treatment of employees. Here are some key aspects employers should be mindful of:

• Coverage exclusions: The Clerks Award doesn’t cover clerical workers employed under industry-specific awards, such as those in hospitality or aged care, even if their duties are largely administrative. 
  
  Why it matters: Employers might mistakenly apply the Clerks Award to these roles, leading to non-compliance. Misapplying the Clerks Award to employees who are actually covered by other industry-specific awards can result in underpayment of wages or incorrect entitlements, exposing employers to significant financial penalties and legal risks.
• Higher duties allowance: When an employee temporarily takes on responsibilities at a higher pay grade, they’re entitled to a higher duties allowance.
  
  Why it matters: In small teams, task sharing is common, and employers might overlook when an employee performs higher duties. This can lead to significant back-pay obligations and compliance issues.
• Overtime for part-time employees: A common mistake is assuming that part-time employees aren’t entitled to overtime rates until they exceed full-time hours.
  
  Why it matters: Part-time employees must be paid overtime rates for hours worked beyond their regular part-time schedule, as agreed in their contract. Failure to do so can result in underpayment, leading to back-payment obligations and potential legal action.

Simplify Clerks Private Sector Award compliance with Rippling

Navigating compliance with the Clerks Award can be challenging because of its extensive coverage, intricate pay structures, and complex leave entitlements. Rippling's unified platform streamlines this process, helping your business maintain compliance while ensuring fair treatment of employees in all aspects of the award. Key features include:

Comprehensive coverage and compliance tools

Rippling’s platform offers custom-built alerts to help keep you updated and on top of award compliance. With detailed reporting, audit support, and customisable templates, you can ensure that your business remains compliant with all facets of the Clerks Award.

Streamlined time, attendance, and leave management

With features like time and attendance tracking and leave management, Rippling ensures that all processes align with the award’s stipulations, reducing manual work and consequent errors, and enhancing operational efficiency.

Simplified payroll, overtime, and superannuation

Rippling simplifies the complexities of payroll, including overtime and superannuation compliance. The platform automatically adjusts pay, overtime, and penalties according to award requirements, and calculates superannuation contributions accurately.

Real-time insights and integration

Rippling’s seamless integration with existing systems ensures accurate financial management, offering peace of mind and operational flow improvements.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.