Industrial Relations Bulletin

Minimum payment for casuals

Important IR development
Minimum payment for casuals

In the August 2017 VACC Update, members were advised that a Full Bench of the Fair Work Commission (FWC) handed down a decision in July 2017 which had inserted a minimum payment period of four hours, (which could be reduced by agreement to three hours) for casuals covered by the Vehicle Manufacturing, Repair, Services and Retail Award 2010, (VMRSR Award).

VACC and other Motor Trades Organisations filed a supplementary submission arguing that if the Full Bench was to introduce a minimum payment for casuals in the VMRSR Award, it should only be for two hours based on the Full Bench decision to introduce this minimum payment period for awards which did not previously have a provision prescribing a minimum pay period for casuals.

Sixteen awards out of the 122 modern awards did not have a minimum casual payment, including the VMRSR Award.

On 22 December 2017, the Full Bench issued a supplementary decision accepting the Motor Trades Organisations submission, that not including a two hour minimum payment in the VMRSR Award was an error as the VMRSR Award did not previously have a minimum casual payment clause.

Operative date for the introduction of the two hour minimum casual payment
The minimum two hour payment for casuals does not take effect until the start of the first full pay period commencing on or after 23 February 2018.