Legal Services Award pay rates, allowances, and overtime
The Legal Services Award 2020 governs employment conditions for individuals employed in legal services roles, ensuring fair wages and working conditions. This award is applicable to a range of occupations within the legal services industry, establishing vital standards for these employees.
This article delves into the primary components of the Legal Services Award, such as minimum pay rates, wage payment protocols, allowances, superannuation, overtime, penalty rates, leave entitlements, and public holidays. Familiarity with these aspects is essential for ensuring compliance and promoting equitable treatment in the workplace.
Note: The information provided in this article is accurate as of 03/07/2024. As award conditions and rates are subject to change, please refer to the latest version of the Legal Services Award 2020 for the most current information.
Legal Services Award minimum pay rates
Comprehending the minimum pay rates is essential for both employers and employees to ensure fair compensation. The table below offers a detailed summary of the minimum rates applicable under the Legal Services Award, encompassing various categories of legal service employees.
It’s important to note that for full-time employees, the minimum weekly rate is applicable and for part-time employees, the minimum hourly rate is applicable. Employers must pay casual employees a loading of 25% for each hour worked on top of the minimum hourly rate indicated below:
Category
Description
Rates/Details
Example
Adult employees
Employees aged 21 and over
Level 1: $989.80/week ($26.05/hour)
Level 2: $1032.30/week ($27.17/hour)
Level 3: $1090.30/week ($28.69/hour)
Level 4: $1145.00/week ($30.13/hour)
Level 5: $1191.50/week ($31.36/hour)
Level 5—Law graduate: $1191.50/week ($31.36/hour)
Level 6—Law clerk: $1262.90/week ($33.23/hour)
A 27-year-old legal secretary classified as a Level 2 employee will be paid $1032.30 per week or $27.17 per hour.
Junior employees
Employees aged under 21
Under 16: 45% of adult employee rate
16 years: 50% of adult employee rate
17 years: 60% of adult employee rate
18 years: 70% of adult employee rate
19 years: 80% of adult employee rate
20 years: 90% of adult employee rate
An 18-year-old junior legal assistant will be paid 70% of the Level 1 adult rate: $692.86 per week or $18.24 per hour.
Higher duties
For employees performing duties of a higher classification for more than one day
At least the minimum rate applicable to the higher-level classification
A legal receptionist performing Level 3 duties for more than one day will be paid the Level 3 rate of $1090.30 per week or $28.69 per hour.
Supported wage system
Employees with a disability eligible for a supported wage
Minimum amount payable is determined by assessed capacity and relevant award pay rates
An employee with a disability assessed at 80% capacity will be paid 80% of the relevant minimum rate for their classification.
National training
wage
Employees undertaking a traineeship
Rates depend on training package, qualification level, and year of training
A first-year trainee in a Certificate III program will be paid according to the specified rates for that training package and year.
Legal Services Award payment of wages
Ensuring wages are paid accurately and on time is a core responsibility of employers under the Legal Services Award. Below, you can find important information relating to the payment of wages:
General payment of wages
- Pay records and payslips: Fair Work Regulations 2009 stipulate the requirements for pay records and the content of payslips, including the requirement to separately identify any allowance paid.
- Method of payment: Employers must pay wages by cash, cheque or electronic funds transfer (EFT) into an account nominated by the employee.
- Pay periods: An employee will be paid fortnightly unless the employer and the employee otherwise agree.
Payment on termination of employment
- Timing: Employers must pay employees their outstanding wages within 7 days after their employment ends. This includes:
- Wages for completed or partially completed pay periods up to the termination date.
- Any other amounts due under the award and the National Employment Standards (NES).
- Deductions and further orders: The Fair Work Commission can issue orders to delay payments, such as redundancy pay, under certain conditions.
Legal Services Award allowances
The Legal Services Award outlines specific allowances to ensure employees are fairly compensated for additional expenses incurred as part of their work duties. Below are the key allowances provided under this award:
Allowance Type
Description
Amount/Details
Meal allowance
For employees required to work overtime
$19.43 for the first meal when working one hour or more of overtime.
An additional $15.49 if overtime exceeds 4 hours.
Uniform allowance
For employees required to wear a special uniform or clothing
$3.65 per week unless the uniform, dress, or clothing is supplied and laundered by the employer.
Vehicle allowance
For employees using their own vehicle for employer’s business
$0.98 per kilometre for a motor car, $0.33 per kilometre for a motorcycle.
Transport allowance
(overtime)
For employees working overtime when reasonable transport to home is unavailable
Reimbursement equal to the cost of transport to reach home, unless the employer provides suitable transport.
Living away from home allowance
For employees required to work temporarily away from their usual place of employment
Allowance to cover fares, and reasonable expenses for board and lodging. Additionally, payment at ordinary rates for travel time (up to eight hours in 24 hours).
Protective clothing allowance
For employees engaged in work damaging to clothing
Does not bear an economic risk
Legal Services Award superannuation
The Legal Services Award outlines specific superannuation obligations for employers to ensure that employees' retirement savings are adequately managed. Here are the key points related to superannuation:
- Employee eligibility: Contributions are required for employees who are:
- Over 18 years old
- Under 18 years old and working more than 30 hours a week
- Employer contributions: Employers must contribute to a superannuation fund to avoid the superannuation guarantee charge. The current superannuation guarantee rate is 11.5% of an employee's ordinary time earnings (OTE).
- Fund selection: Employees can choose their superannuation fund. If no choice is made:
- Employers must check with the ATO for a stapled fund and contribute to it.
- If no stapled fund exists, employers can contribute to an approved fund nominated in the award, including, but not limited to LegalSuper, Tasplan, AustralianSuper or CareSuper.
- Voluntary contributions: Employees may authorise their employer in writing to make additional superannuation contributions from their post-tax wages. They can adjust their voluntary contribution amounts with three months' written notice. Employers must pay the authorised additional contributions no later than 28 days after the end of the month in which the deduction was made.
For accurate information, always check the Award for updates along with the Fair Work Commission’s super guarantee guidelines.
Legal Services Award overtime and penalty rates
Overtime and penalty rates ensure fair compensation for employees working beyond their regular hours. The Legal Services Award outlines specific conditions and rates for overtime. Note that different requirements apply to shiftworkers.
Conditions for overtime
Employers must pay overtime for:
- Hours exceeding the ordinary weekly hours of 38.
- Any time worked outside ordinary hours on any day.
- Any portion of one hour not exceeding 30 minutes is reckoned as 30 minutes, and any portion of one hour in excess of 30 minutes is reckoned as one hour.
- Overtime on a rostered day off that isn’t substituted or banked.
- For part-time employees, hours in excess of the agreed number of ordinary hours.
There are also specific rules for minimum overtime payment. Employees are entitled to a minimum of three hours at overtime rates for work performed on a Saturday after 12:00 PM and any time worked on a Sunday, as well as on public holidays.
Overtime rates
Hours of overtime worked per day
Overtime rate (full-time and part-time employees)
Overtime rate (casual employees)
Monday to Saturday—first 3 hours
150% of minimum hourly rate
175% of minimum hourly rate
Monday to Saturday—after 3 hours
200% of minimum hourly rate
225% of minimum hourly rate
Saturday after 12.00 PM and Sunday
200% of minimum hourly rate
225% of minimum hourly rate
Public holiday—all day
250% of minimum hourly rate
275% of minimum hourly rate
Example
Jessica is a full-time legal secretary with a regular hourly rate of $28 who works a standard 38-hour week. One week, she works an additional seven hours beyond her regular hours, with four hours of overtime on Wednesday and three hours of overtime on Sunday.
- First four hours of overtime on Wednesday: 4 hours x $28 x 1.5 = $168
- Next three hours of overtime on Sunday: 3 hours x $28 x 2 = $168
- Total overtime pay: $168 + $168 = $336
Time off instead of payment for overtime
The Legal Services Award offers flexibility through the option of time off instead of payment for overtime worked, subject to agreement between the employer and employee. This can be arranged as follows:
- Time off in lieu of payment: Employees can choose to take equivalent time off for the overtime hours worked instead of receiving overtime pay.
- Agreement requirements: Any such agreement must detail the number of overtime hours worked, the arrangement for taking time off instead of receiving payment, and the conditions under which payment must be made if the employee requests it.
- Timeframe for taking time off: The time off must be taken within six months from when the overtime was worked, at a time agreed upon by both the employee and the employer.
- Record-keeping: Employers are required to keep records of any agreements made for time off instead of payment for overtime.
Call-back and standby provisions
- Recall to work: An employee recalled to work overtime after leaving the employer’s premises is entitled to a minimum payment of four hours. This is paid at 150% of the minimum hourly rate for the first three hours and 200% of the minimum hourly rate thereafter.
- Multiple call-backs: If an employee is recalled more than once between the end of one day’s work and the start of the next, they’re entitled to the minimum overtime payment for each call-back.
- Completion of tasks: An employee isn’t required to work the full three or four hours if the task they were recalled for is completed sooner, except in unforeseen circumstances.
- Customary returns: This provision doesn’t apply if it’s customary for an employee to return to work for specific jobs outside ordinary hours or if the overtime is continuous with the start or end of regular working hours.
- Standing by: If an employee is required to regularly be on standby outside of ordinary hours, they must be paid at their ordinary rate for the time they’re on standby.
Additional considerations
- Rest period after overtime: Employees who work overtime must have at least a 10-hour break between the end of the overtime period and the start of their next shift. If this break isn’t provided, the employee must be paid at double time until such a break is granted.
- Overtime for casual employees: Casual employees are entitled to the specified overtime rates in addition to their casual loading.
Legal Services Award leave and public holidays
Leave entitlements are an essential aspect of employee rights under the Legal Services Award. This section details the various types of leave available to employees, including annual leave, personal/carer’s leave, compassionate leave, parental leave, community service leave, and family and domestic violence leave.
Annual leave
Clause
Details
Example
Annual leave entitlement
According to the NES:
Full-time employees are entitled to four weeks of annual leave per year.
Part-time employees earn annual leave on a pro-rata basis.
A full-time employee working 38 hours a week earns four weeks of annual leave per year.
A part-time worker with a 19 hour week earns four weeks of leave paid at 19 hours per week.
Payment for period of annual leave
Before starting their annual leave, employees must be paid an amount equal to the wages they would have earned for their ordinary hours if they weren’t on leave.
If an employee's weekly wage is $1,000, they will receive $1,000 for each week of annual leave taken.
Annual leave loading
Employees receive a 17.5% loading on their wages during annual leave.
James takes two weeks of annual leave. His regular weekly wage is $1,000. He receives an additional 17.5% loading: $1,000 x 2 weeks x 17.5% = $350.
Shutdown period
Employers may temporarily shut down operations, requiring employees to take paid annual leave.
Employees must be given 28 days' written notice.
A company plans a shutdown for the first week of February. They notify employees on 1st January. Employees must take paid annual leave during this period or, if they don’t have enough leave, can agree to take leave without pay.
Leave in advance
Employers and employees can agree in writing for the employee to take annual leave before it’s accrued. The agreement must specify the amount of leave and the start date, and be signed by both parties.
Kaity and her employer agree that she’ll take one week of annual leave in advance. They sign an agreement stating the leave will begin on 15th September.
Cashing out annual leave
Employees can cash out annual leave if there is a written agreement with the employer.
They must retain at least four weeks of accrued leave.
A maximum of two weeks can be cashed out in a 12-month period.
The agreement must state the amount cashed out and payment details.
Does not bear an economic risk
Excessive leave accruals
Can freely provide services to multiple organizations
Generally works for their employer exclusively
Other types of leave
The following leave entitlements are aligned with the NES, providing employees with necessary support in various situations:
- Personal/carer’s leave: Full-time employees are entitled to 10 days of paid personal/carer’s leave each year. Part-time employees earn this leave on a proportional basis.
- Compassionate leave: Employees can take two days of compassionate leave for each qualifying event, such as the death or severe illness of a close family member.
- Parental leave: Employees are allowed up to 12 months of unpaid parental leave, with the possibility to request an additional 12 months.
- Community service leave: Employees can take unpaid leave for community service activities, including volunteer emergency management duties or jury duty.
- Family and domestic violence leave: Employees are entitled to 10 days of unpaid leave annually to deal with issues related to family and domestic violence.
- Paid study leave: A law graduate is entitled to paid study leave not exceeding a total of 20 days in any 12-month period to attend a course of instruction, and prepare for and attend examinations that relate to the practical legal training required for their admission to practice as an Australian lawyer.
Public holidays
Public holidays provide employees with a break from work and are a crucial part of employee entitlements under the Legal Services Award. Here’s a summary of how public holidays are managed according to the award and the NES:
Clause
Details
General entitlement
According to the NES, employees (excluding casuals) are entitled to a paid day off on a public holiday.
Reasonable refusal
Employers can request an employee to work on a public holiday if the request is reasonable. Employees have the right to refuse if the request is unreasonable or if their refusal is reasonable.
Substituting a public holiday
Employers and employees can mutually agree to substitute another day for a public holiday.
Substituting a part-day public holiday
Employers and employees can mutually agree to substitute another part-day for a part-day that would otherwise be a public holiday.
Penalty rates for work on public holidays
Any work performed on a public holiday must be compensated at the penalty rates specified in the award.
Recognised public holidays
Public holidays recognised under the NES include New Year’s Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Queen’s Birthday, Christmas Day, and Boxing Day, among others.
Additional public holidays
States and territories can declare additional public holidays, which must be observed by employers.
Substitute holidays
If a public holiday falls on a weekend, a substitute public holiday is typically declared, often the following Monday.
Understanding shiftwork under the Legal Services Award
Shiftwork under the Legal Services Award involves working outside standard business hours, often in rotating shifts covering a 24-hour period. Here are the key details:
Definitions
- Afternoon shift: Ends after 6:00 PM and at or before midnight.
- Night shift: Ends after midnight and at or before 8:00 AM.
- Early morning shift: Starts between 5:00 AM and 6:00 AM, except when part of a shift system preceding an afternoon shift ending at 11:00 PM.
- Permanent night shift: Night shift only, longer than four consecutive weeks, or doesn’t alternate with other shifts to give one-third of working time off night shift in each cycle.
- Seven-day shiftworker: Regularly works on Sundays and public holidays.
Shift penalty rates
Shift type
Penalty rate (% of minimum hourly rate)
Casual penalty rate (% of minimum hourly rate)
Afternoon or night shift
115%
140%
Early morning shift
110%
135%
Non-continuous afternoon or night (first three hours)
150%
175%
Non-continuous afternoon or night (after three hours)
200%
225%
Permanent night shift
130%
155%
Rates for Saturday, Sunday, and public holiday shifts
Extra rates for working on Saturdays, Sundays, and public holidays are not cumulative with shift penalty rates. Here are the specific rates for continuous and non-continuous shiftworkers:
Saturday shifts
All shiftworkers are paid 150% of the minimum hourly rate for work performed on a Saturday.
Sunday and public holiday shifts
Day/shift type
Continuous shiftworkers
Continuous shiftworkers
Sunday
200% of minimum hourly rate
200% of minimum hourly rate
Public holiday
200% of minimum hourly rate
250% of minimum hourly rate
Calculating shift penalty rates
- Shifts starting between 11:00 PM and midnight on a Sunday or public holiday don’t attract Sunday/public holiday rates for time worked before midnight.
- Shifts starting before midnight and extending into a Sunday or public holiday are paid at the Sunday/public holiday rate for the entire shift.
- Shifts falling partly on a public holiday are paid at the public holiday rate if the majority of the shift falls on the public holiday.
Work on a rostered day off
When an employee works on a rostered day off, the compensation is as follows:
Day
Payment rate
Minimum payment
Monday to Saturday
First 3 hours: 150% of minimum hourly
After 3 hours: 200% of minimum hourly rate
None
Sunday
200% of minimum hourly rate
Four hours
Public holiday
250% of minimum hourly rate
Four hours
Additional provision
- If a relief shiftworker gives at least 7 hours 36 minutes’ notice of absence and the shiftworker needing relief continues to work on their rostered day off, they’ll be paid 200% of the minimum hourly rate.
- Shiftworkers whose rostered day off coincides with a public holiday must receive an extra day's pay or an additional day added to their annual leave. If the public holiday is a part-day, the compensation applies pro-rata.
Note: The extra rates are in substitution of and not cumulative with shift penalty rates.
Time off instead of payment for overtime for shiftwork
- Agreement: An employer and employee may agree in writing for the employee to take time off instead of being paid for overtime. Each instance of overtime must be covered by a separate agreement.
- Agreement details: The agreement must specify the number of overtime hours worked, when they were worked, and confirm that the employee can request payment instead of time off.
- Timeframe for taking time off: Time off must be taken within six months of the overtime worked, at a mutually agreed time.
- Payment in lieu of time off: If the employee requests payment for overtime not taken as time off, the employer must pay at the applicable overtime rate.
- Record keeping: The employer must keep a copy of any agreement as an employee record.
Rest period after working overtime for shiftwork
- Rest period: Employees should have at least ten consecutive hours off between shifts. If this rest period isn’t provided due to overtime, employees must be released from duty until they have had the required rest.
- Compensation for lack of rest: If the employee resumes work without the ten-hour rest, they must be paid at 200% of the minimum hourly rate until they’re released from duty for the rest period
Additional paid annual leave for certain shiftworkers
Employees who are regularly rostered to work on Sundays and public holidays in businesses where shifts are continuously rostered 24 hours a day for 7 days a week are entitled to an additional week of paid annual leave as per the NES.
Legal Services Award payment management tips
Effectively managing payments and entitlements under the Legal Services Award can be complex. Here are some strategies to ensure compliance with minimum wage, payment of wages, overtime, penalty rates, leave, superannuation, and other entitlements:
- Keep up-to-date with award rates: Check for updates on minimum wages, overtime, and penalty rates as specified in the award regularly since these can change yearly.
- Use reliable payroll software: Implement reliable payroll software to automate wage calculations, overtime, penalty rates, and superannuation, reducing errors and ensuring timely payments.
- Maintain accurate record-keeping: Keep comprehensive records of all employee payments, including wages, overtime, penalty rates, and leave entitlements, to ensure compliance and address any disputes.
- Conduct regular audits: Conduct periodic audits of your payroll system to verify compliance with the award's latest requirements.
- Document employee agreements: Ensure all agreements related to annual leave (including leave in advance and cashing out leave) and overtime (including time off in lieu) are documented and signed by both employer and employee.
- Provide training and support: Train your HR and payroll staff on the Legal Services Award specifics to manage payments and entitlements accurately.
- Seek consultation and legal advice: Regularly seek advice from industrial relations experts or legal advisors to stay informed about changes in the award or employment laws.
- Manage leave effectively: Track employee leave balances accurately, including annual leave, personal/carer’s leave, compassionate leave, and other entitlements. Ensure employees are aware of their leave balances and entitlements.
- Ensure superannuation compliance: Make sure superannuation contributions are accurately calculated based on ordinary time earnings (OTE) and paid on time. Utilise payroll software to automate these calculations and payments.
- Communicate with employees: Maintain open communication with employees regarding their pay, entitlements, and any changes to award conditions, building trust and preventing misunderstandings.
- Stay informed about NES: Keep up to date with the National Employment Standards, which provide foundational guidelines that interact with the provisions of the Legal Services Award.
Legal Services Award nuances
The Legal Services Award 2020 covers a wide range of roles within the legal sector, making it essential for employers to understand and adhere to its specific provisions. Here are some key nuances to be aware of:
- Overtime as the norm: The legal industry's culture often involves working beyond standard hours, making the calculation and compensation of overtime crucial.
Impact: Ineffective management of overtime can result in significant payroll overages and compliance issues, jeopardising the practice's financial health and potentially leading to legal consequences. - Penalty rates for odd hours: Legal professionals frequently work late nights, weekends, and public holidays.
Impact: The Award's penalty rates for these hours can substantially increase payroll costs and, if not properly budgeted for, can lead to non-compliance and financial liabilities.
Simplifying Legal Services Award pay, overtime and superannuation compliance with Rippling
Managing pay, overtime, superannuation, and annual leave under modern awards can be complex. Rippling's all-in-one platform streamlines these processes, ensuring accuracy, compliance and total peace of mind. Key features include:
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- Overtime management: Track and manage overtime hours according to award requirements.
- Superannuation compliance: Ensure correct calculation, reporting and payment of superannuation contributions.
- Integrated payroll systems: Seamlessly integrate with existing payroll systems.
- Real-time updates: Receive updates on changes to pay rates and superannuation rules for various awards.
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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.
