Overtime Policy
An Overtime policy that aligns with modern award and Fair Work obligations on reasonable additional hours.
Overtime is one of the most frequently contested wage issues in Australian workplaces. Modern awards specify when overtime applies, at what rate, and when employees can refuse. Section 62 of the Fair Work Act sets the test for 'reasonable additional hours'.
This free template is written for Australian employers and gives you a defensible framework for authorising, recording and paying overtime.
What this template covers
- When overtime applies under your modern award or enterprise agreement.
- Authorisation and approval workflow before overtime is worked.
- Award overtime rates, meal allowances and annualised salary reconciliation.
- Time off in lieu (TOIL) rules: written agreement, hour-for-hour time off and payout on request.
- Reasonable refusal rights under s.62 of the Fair Work Act.
Why every Australian business needs one
Underpayment of overtime is one of the most common Fair Work compliance issues uncovered in audits. A clear policy that aligns with your modern award and is consistently followed is a key defence in any wage-recovery action.
Download the editable Word template, plug in your award classifications and rates, and align it with your timesheet and approval systems.
Disclaimer. This template is general information for Australian employers and is not legal advice. It is provided free of charge and “as is”. Review and adapt it for your industry, modern award or enterprise agreement, state or territory and workplace, and check that it is current, before issuing it. For complex, high-risk or contested matters seek advice from an employment lawyer or IR adviser. To the maximum extent permitted by law, we make no warranty that the template is accurate, complete, current or suitable for your purposes, and we accept no liability (including for negligence) for any loss arising from its use or any reliance on it. Nothing in this disclaimer excludes any right under the Australian Consumer Law that cannot lawfully be excluded.