The ordinary pay of a casual worker not entitled to paid leave, is the rate of pay to which the worker is entitled for ordinary hours of work and includes allowances paid for working ordinary hours.
Rate of Pay
Show moreThe rate of pay is the hourly rate paid for ordinary hours of work inclusive of casual loading and applicable allowances.
If a worker is paid a composite all-up rate inclusive of allowances and an unspecified amount for overtime, this all-up rate will be the rate of pay used to determine the worker’s ordinary pay.
Ordinary Hours of Work
Show moreThe ordinary hours of work for casual workers depend on the terms of their employment and whether a rostered work cycle applies. The terms of employment may be set out in an award, enterprise agreement, individual flexibility arrangement, or employment contract (including a letter of engagement).
Where a rostered work cycle does not apply, ordinary hours of work are generally considered to be 38 hours per week (equivalent to 7.6 hours per day), unless the terms of employment provide otherwise and the ordinary hours of work are defined or readily identifiable.
In general, ordinary hours of work are those that do not attract overtime, whether overtime is paid separately or incorporated into a composite rate of pay. Overtime hours are therefore excluded from the calculation of ordinary hours.
If the ordinary hours of work are not explicitly stated or cannot be readily determined from the employment contract, the applicable industrial instrument (such as an award or enterprise agreement) will be used to determine the ordinary hours.
Rostered Day Off
Show moreA Rostered Day Off (RDO) is a paid day off, which the worker has effectively ‘purchased’ by working their ordinary hours in fewer days than required under the terms of their employment. RDOs are regarded as days of service.
The worker’s ordinary hours of work are averaged over the RDO cycle, and this includes any rostered days off.
It’s important to note that RDOs are not the same as unpaid days in a rostered work cycle, which are addressed in the following section.
Rostered Work Cycles for Casual Workers
Show moreA rostered work cycle comprises both paid on-duty days (days of service) and unpaid off-duty days where the worker is not rostered to work. Under this arrangement, the employee is considered employed for the entire duration of the cycle, not just during the on-duty period.
In such cases, only the paid on-duty days within the cycle are counted as days of service.
Where a worker’s terms of employment include a rostered work cycle, their ordinary hours of work will be averaged over the work cycle, typically an average of 38 hours per week, unless otherwise specified by an applicable award, enterprise agreement, or other employment arrangement.
If the terms of employment do not include a rostered work cycle with defined on-duty and off-duty periods, then hours cannot be averaged across a cycle. In these instances, ordinary hours of work are generally considered to be 7.6 hours per day of service, unless otherwise specified in the terms of employment.
The ordinary hours of work per day of service in a rostered work cycle are calculated by dividing the total ordinary hours in the work cycle by the number of paid on-duty days, using the following formula:
Ordinary hours per day of service = 
Where:
a = Average ordinary hours per week (according to terms of employment)
b = Total number of days in the work cycle
c = Number of paid on-duty days
Note: Dividing the total number of days in the work cycle by 7 converts the cycle into weeks, which is necessary when the cycle does not align with full weeks.
Ordinary Hours Calculator
To calculate the ordinary hours worked per day of service for a worker based on the rostered work cycle formula use the calculator at Ordinary Hours Calculator Rostered Work Cycles for Casual Workers (Hold Ctrl and click to open in a new tab)
Ordinary Hours - Examples of Rostered Work Cycles
Show moreRostered Work Cycle Examples and the application of ordinary hours per day of service.
Tom’s terms of employment provide that he is employed on a rostered work cycle over a period of 4 weeks (over 28 days) consisting of:
During the on-duty period, Tom is required to work and be paid 12 hours per day. Number of ordinary hours in the work cycle Tom’s employment terms specify that his ordinary hours of work are an average 38 hours per week. Over the 28 day 4-week cycle, this equates to a total of 152 ordinary hours (calculated as 38 hours per week x 28 days in the work cycle ÷ 7 days per week). Any hours worked beyond the 152 ordinary hours in the cycle are classified as overtime. Ordinary hours per day of service To determine Tom’s ordinary hours of work per day of service, the total ordinary hours (152) are divided by the 14 paid on-duty days. This results in 10.86 ordinary hours per day of service calculated by:
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Emma’s terms of employment provide that she is employed on a rostered work cycle over a period of 6 weeks (over 42 days) consisting of:
During the on-duty period, Emma is required to work and be paid 12 hours per day. Number of ordinary hours in the work cycle Emma’s employment terms specify that her ordinary hours of work are an average 42 hours per week. Over the 42 day 6-week cycle, this equates to a total of 252 ordinary hours (calculated as 42 hours per week x 42 days in the work cycle ÷ 7 days per week). Any hours worked beyond the 252 ordinary hours in the cycle are classified as overtime, however, in this example there are no hours worked that exceed this. Ordinary hours per day of service To determine Emma’s ordinary hours of work per day of service, the total ordinary hours (252) are divided by the 21 paid on-duty days. This results in 12 ordinary hours per day of service calculated by:
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Chloe’s terms of employment provide that she is employed on a rostered work cycle over a period of 2 weeks (over 14 days) consisting of:
During the on-duty period, Chloe is required to work and be paid 12 hours per day. Number of ordinary hours in the work cycle Chloe’s employment terms specify that her ordinary hours of work are an average 38 hours per week. Over the 14 day 2-week cycle, this equates to a total of 76 ordinary hours (calculated as 38 hours per week x 14 days in the work cycle ÷ 7 days per week). Any hours worked beyond the 76 ordinary hours in the cycle are classified as overtime. Ordinary hours per day of service To determine Chloe’s ordinary hours of work per day of service, the total ordinary hours (76) are divided by the 8 paid on-duty days. This results in 9.5 ordinary hours per day of service calculated by:
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Paul’s terms of employment provide that he is employed on a rostered work cycle over a period of 27 days that is not a multiple of a standard 7-day week consisting of:
During the on-duty period, Paul is required to work and be paid 12 hours per day. Number of ordinary hours in the work cycle Paul’s employment terms specify that his ordinary hours of work are an average 38 hours per week. Over the 27 day work cycle, this equates to a total of 146.57 ordinary hours (calculated as 38 hours per week x 27 days in the work cycle ÷ 7 days per week). Any hours worked beyond the 146.57 ordinary hours in the cycle are classified as overtime. Ordinary hours per day of service To determine Paul’s ordinary hours of work per day of service, the total ordinary hours (146.57) are divided by the 14 paid on-duty days. This results in 10.47 ordinary hours per day of service calculated by:
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Ordinary Hours Ready Reckoner - Calculated Examples
Show moreThis table provides calculated examples using the rostered work cycle formula to:
- Determine the ordinary hours worked per day of service, and
- Identify any overtime hours per day of service.
| Hours worked per day | Average ordinary hours per week * (a) | Paid on-duty days ^
(c) | Unpaid off-duty days | Total days in work cycle
(b) | Ordinary hours in work cycle (d) = a x b ÷ 7 | Ordinary hours per day of service = d ÷ c | Overtime hours per day of service |
7.6 # | 38 | 5 | 2 | 7 | 38 | 7.60 | Nil | |
9.5 | 38 | 8 | 6 | 14 | 76 | 9.50 | Nil | |
10.5 | 42 | 8 | 6 | 14 | 84 | 10.50 | Nil | |
12 | 38 | 8 | 6 | 14 | 76 | 9.50 | 2.50 | |
12 | 38 | 14 | 14 | 28 | 152 | 10.86 | 1.14 | |
12 | 38 | 14 | 13 | 27 | 146.57 | 10.47 | 1.53 | |
12 | 38 | 21 | 21 | 42 | 228 | 10.86 | 1.14 | |
12 | 38 | 22 | 20 | 42 | 228 | 10.36 | 1.64 | |
12 | 42 | 14 | 14 | 28 | 168 | 12.00 | Nil | |
12 | 42 | 21 | 21 | 42 | 252 | 12.00 | Nil | |
12 | 42 | 22 | 20 | 42 | 252 | 11.45 | 0.55 | |
12 | 44 | 22 | 20 | 42 | 264 | 12.00 | Nil |
* According to terms of employment (award, enterprise agreement, contract of employment etc.)
^ Days of service
# Represents a standard 5-day work week
Allowances Paid to Casual Workers
Show moreAllowances and penalty rates paid to casual workers for performing their ordinary hours of work are generally included in ordinary pay, as they represent the rate of pay received by casual workers during ordinary hours. However, whether an allowance or penalty is included in ordinary pay depends on the nature of the specific allowance and its application to the worker.
Allowances that are paid on a worker’s ordinary hours or paid unconditionally are typically considered to be part of ordinary pay. This includes allowances incorporated into an all-up composite rate of pay.
In contrast, reimbursements for costs, purchases, or payments made by a worker are not unconditional and therefore not considered ordinary pay.
Allowances or penalties that are triggered by overtime, which applies to hours worked beyond ordinary hours, are excluded from ordinary pay.
A guide for the inclusion of allowances and penalties in ordinary pay is provided, but not limited to, in the following table.
| Include in Ordinary Pay | Exclude from Ordinary Pay |
| Casual loading | Meal allowances |
| Merit or skill-based allowances (e.g. leading hand allowances) | Taxi fare reimbursements |
| Tool and industry allowances | Accommodation allowances |
| Shift allowances/penalties | Living away from home allowances |
| Site allowances | First-aid allowances – if conditional |
| First-aid allowances – if unconditional | Phone allowances |
| Offshore allowance – if ordinary hours are worked offshore | Fares, travel or vehicle allowances |
| Hook up and completions loading – if unconditional | On-call allowances |
Note: The inclusion of a specific allowance or penalty in ordinary pay may differ dependent on the terms of employment.
Frequently Asked Questions (FAQ)
Show moreUnderstanding Ordinary Pay under the Construction Industry Portable Paid Long Service Leave Act 1985.
General Overview
Q1: What is ‘ordinary pay’?
Ordinary pay refers to the rate used to calculate long service leave payments and employer contributions for a worker’s day of service under the Act. It varies depending on whether the worker is entitled to paid annual leave.
Q2: Does the definition of ‘ordinary pay’ differ from the general Long Service Leave Act 1958?
Yes. The definition under the Construction Industry Portable Paid Long Service Leave Act 1985 differs from that in the Long Service Leave Act 1958 (WA).
Workers Not Entitled to Paid Leave (Casual Workers)
Ordinary Pay for Casual Workers
Q3: What has changed in the interpretation of ‘ordinary pay’ for casual workers?
The MyLeave Board now recognises that ordinary hours for casual workers can be defined by employment contracts, IFAs, or letters of engagement, not just registered industrial instruments. If these documents clearly identify ordinary hours, they will be used to calculate contributions. Overtime hours are excluded.
Q4: What constitutes ordinary pay for casual workers?
It includes the hourly rate for ordinary hours of work, casual loading, and allowances paid for working ordinary hours.
Q5: What are ‘ordinary hours of work’?
These are hours that do not attract overtime. Typically, it’s 38 hours per week or 7.6 hours per day unless otherwise specified in a worker’s terms of employment.
Q6: What are ‘terms of employment’?
Terms of employment includes awards, enterprise agreements, individual flexibility arrangements, or employment contracts (including letters of engagement).
Q7: How are ordinary hours determined if not stated in the contract of employment?
They are determined by the applicable industrial instrument (e.g., award or enterprise agreement).
Q8: Are RDOs included in ordinary hours for casuals?
Yes. The worker’s ordinary hours of work are averaged over the RDO cycle, and this includes any rostered days off. RDOs count as days of service.
Rostered Work Cycles for Casual Workers
Q9: How are ordinary hours calculated in a rostered work cycle?
Ordinary hours are averaged across the cycle and only paid on-duty days count as days of service. If the cycle isn’t clearly defined in the employment terms, averaging is not permitted.
The ordinary hours of work per day of service in a rostered work cycle are calculated by dividing the total ordinary hours in the work cycle by the number of paid on-duty days, using the formula below.
Ordinary hours per day of service = 
Where:
- a = Average ordinary hours per week
- b = Total number of days in the work cycle
- c = Number of paid on-duty days
Q10: What are the average ordinary hours per week in a rostered work cycle?
Ordinary hours of work are averaged over the whole work cycle, typically an average of 38 hours per week, unless otherwise specified by an applicable award, enterprise agreement, or other employment arrangement (terms of employment).
Allowances Paid to Casual Workers
Q11: Which allowances are included in ordinary pay?
Allowances and penalty rates paid to casual workers for performing their ordinary hours of work, including the casual loading, are generally included in ordinary pay.
Allowances that are paid on a worker’s ordinary hours or paid unconditionally are typically considered part of ordinary pay. This includes allowances incorporated into an all-up composite rate of pay.
Q12: Are reimbursements for costs, purchases, or payments made by a worker considered ordinary pay?
No. Reimbursements are not unconditional and are excluded.
Q13: Are allowances or penalties paid whilst working overtime included?
No. Allowances or penalties that are triggered by overtime, which applies to hours worked beyond ordinary hours, are excluded from ordinary pay.
Q14: Are allowances included in ordinary pay?
Yes, if they are paid during ordinary hours or unconditionally. Examples include:
- Casual loading
- Merit or skill-based allowances (e.g. leading hand allowances)
- Tool and industry allowances
- Shift allowances/penalties
- Site allowances
- First-aid allowances – if unconditional
- Offshore allowance – if ordinary hours are worked offshore
- Hook up and completions loading – if unconditional
Excluded allowances include:
- Meal allowances
- Taxi fare reimbursements
- Accommodation allowances
- Living away from home allowances
- First-aid allowances – if conditional
- Phone allowances
- Fares, travel or vehicle allowances
- On-call allowances
Notes:
The inclusion of a specific allowance or penalty in ordinary pay may differ dependent of the terms of employment.
Pay slips may be required to verify the inclusion of any allowances in ordinary pay.
Claim Review
Q15: Will past long service leave claims be reviewed?
Yes. MyLeave will reassess claims dating back to December 2016 to ensure workers receive correct entitlements. Employers may be asked to provide supporting documentation.
Claims prior to this date may also be considered, provided the worker can supply sufficient supporting documentation.
Legal Notice
Show moreThe above detail is for information purposes only. The information does not constitute legal advice and should not be relied upon as legal advice. You should seek your own independent legal advice based on your particular circumstances before taking any action based on the information set out above.
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