In Summary
- Ordinary hours for casual workers can now be determined from employment contracts, letters of engagement, or IFAs provided these documents define or identify ordinary hours. This change may impact how contributions and claim payments are calculated, especially for workers whose contracts specify more than 38 hours per week.
- Arrangements for averaging ordinary hours over rostered work cycles have been clarified.
- Allowances paid while performing ordinary hours of work are covered under a broader interpretation of what constitutes ordinary pay, while conditional or reimbursement-based allowances are excluded.
A comparison table of the previous approach and revised interpretation of key provision is provided below.
These changes reflect a more accurate application of the Act and will help ensure workers receive their correct entitlements.
Action Required by Employers
From the October–December 2025 quarter (due January 2026), employers are required to report contributions using the revised interpretation of ordinary pay for casual workers.
Claim Review for Impacted Workers
To ensure workers are not disadvantaged by the change in interpretation, MyLeave will review long service leave claims dating back to December 2016. Claims prior to this date may also be considered, provided the worker can supply sufficient supporting documentation.
If any underpayments are identified based on the revised interpretation and supported by appropriate evidence, adjustments will be made to ensure affected workers receive the correct entitlement.
Given the volume of claims, this review process is expected to take several years. A dedicated team is being established and will commence this work in the coming months.
MyLeave may not hold all the necessary information to verify terms of employment and allowances paid to casual workers. Employer cooperation will be essential to ensure workers receive their correct entitlements under the revised interpretation of ordinary pay.
More Information
For more information, please refer to the Ordinary Pay page for a detailed explanation of the revised interpretation
Comparison Table
Previous | Revised | |
| Ordinary Hours of Work | Ordinary hours of work capped at 38 hours per week unless otherwise specified in a registered industrial instrument (e.g. award or enterprise agreement). | Ordinary hours for casual workers are determined from all terms of employment including employment contracts, letters of engagement, or IFAs, provided these documents define or identify ordinary hours. Overtime hours are excluded. |
| Rostered Work Cycles | As above.
| Ordinary hours are averaged over rostered work cycles that include both paid on-duty days (days of service) and unpaid off-duty days. Average ordinary hours per week are defined in terms of employment. |
| Allowances | Casual loadings, and allowances in all-up rates of pay, are included. | Casual loadings, and allowances paid while performing ordinary hours of work, are covered under a broader interpretation of what constitutes ordinary pay. Conditional or reimbursement-based allowances are excluded. |
Print this page
