Following on from its recent decision to vary the rules around annual leave (see http://sladen.com.au/news/2016/8/11/commission-alters-modern-awards-to-allow-cashing-out-of-annual-leave) the Fair Work Commission (Commission) has developed a new standard Time Off in Lieu of Overtime (TOIL) provision.

Each of the 46 modern awards which previously contained a TOIL term have been affected, as well as 26 other modern awards, which will contain a right to TOIL for the first time.

Some of the key aspects of the new TOIL term include that:

• any amount of TOIL must be the subject of a separate, written agreement;

• the agreement must specify such things as the number of overtime hours to which it applies and when the overtime was worked (the awards also now contain an example agreement);

• the time off must be taken within 6 months of the overtime being worked; and

• unused TOIL must be paid upon termination of employment.

Although the affected awards will be updated gradually, the determinations issued by the Commission have immediate effect. For further information on this change or to see whether your award is affected, please contact:

Louise Houlihan
Principal
Sladen Legal
T: 03 9611 0144
E: lhoulihan@sladen.com.au

Jane McKay
Senior Associate
Sladen Legal
T: 03 9611 0155
E: jmckay@sladen.com.au