This document summarises key provisions of the Clerks Private Sector Award 2020 (MA000002). The award contains additional provisions that may apply in specific circumstances. Always refer to the current award text at awards.fairwork.gov.au/MA000002.html for complete obligations. This is not legal advice. For complex matters, seek independent legal advice.
The Clerks Private Sector Award 2020 covers private sector employers and their employees engaged in clerical and administrative work. Coverage is determined by what an employee does, not their job title. The award applies across industries including finance, logistics, healthcare, professional services, consulting, and real estate where the primary work is clerical or administrative in nature.
Roles that fall under this award
Receptionists, administrative assistants, payroll and accounts clerks, data entry operators, customer service officers, executive assistants, office coordinators, call centre workers, and team leaders in administrative functions.
Roles that do not apply
Employees covered by another modern award such as the Legal Services Award, Real Estate Award, Banking Finance and Insurance Award, or Aged Care Award. Senior managers above the prescribed level. Employees on a compliant enterprise agreement.
Classifications are defined in Schedule A of the award. Correct classification is based on the best fit between the employee's role and the classification descriptors. Both the characteristics (level of knowledge, degree of supervision, accountability) and the typical duties at each level should be considered. The characteristics are the primary guide. The award has 5 levels, with Levels 1 and 2 split into sub-years based on experience.
| Classification | Weekly Rate (full time) | Hourly Rate | Casual Hourly (incl. 25%) |
|---|---|---|---|
| Level 1 Year 1 | $978.40 | $25.74 | $32.18 |
| Level 1 Year 2 | $1,024.40 | $26.96 | $33.70 |
| Level 1 Year 3 | $1,056.00 | $27.79 | $34.74 |
| Level 2 Year 1 | $1,068.40 | $28.12 | $35.15 |
| Level 2 Year 2 | $1,088.20 | $28.64 | $35.80 |
| Level 3 | $1,128.50 | $29.70 | $37.13 |
| Level 4 | $1,185.10 | $31.19 | $38.99 |
| Level 5 | $1,233.20 | $32.45 | $40.56 |
Higher duties: If an employee is required to perform duties at a higher classification level for more than one day, they must be paid at least the minimum rate for that higher level for the entire period those duties are performed. Document any higher duties arrangements.
Annual leave loading: The award requires 17.5% annual leave loading to be paid on top of base pay when an employee takes annual leave. If the employee would have earned more from applicable weekend or shift penalties during that period, the higher amount applies.
Full time employees work an average of 38 ordinary hours per week. The span of ordinary hours is Monday to Friday, 7:00am to 7:00pm and Saturday 7:30am to 12:00pm (midday). Work within this span at agreed hours is paid at ordinary rates, with a 125% penalty applying to Saturday ordinary hours. Hours may be averaged over a roster cycle of up to 4 weeks.
| Day and Time | Rate | Notes |
|---|---|---|
| Monday to Friday, 7:00am to 7:00pm | Ordinary rate | Standard span, no loading |
| Saturday (ordinary hours within span) | 125% | Penalty rate for ordinary hours worked on Saturday |
| Monday to Friday before 7:00am or after 7:00pm | 150% first 2 hrs / 200% after | Overtime outside span |
| Saturday overtime, first 2 hours | 150% | Applies where Saturday work is not part of a normal work pattern. Minimum 3 hours where employee has already worked 38 hours Monday to Friday. |
| Saturday overtime, after 2 hours | 200% | Continues from the 150% rate above. |
| Sunday | 200% | Penalty rate, full time and part time |
| Public holiday | 250% | If worked. Substitute day entitlement may also apply. |
Saturday rates: Ordinary hours worked on Saturday attract a 125% penalty rate. Overtime rates (150% for the first 2 hours, 200% after) apply where Saturday work is not part of the employee's normal work pattern, for example where an employee has already worked 38 hours Monday to Friday, or is working outside the ordinary hours span. The distinction between ordinary Saturday hours (125%) and Saturday overtime is important to get right.
| Scenario | Rate | Notes |
|---|---|---|
| First 2 hours overtime (Mon to Fri, daily) | 150% | Applies when working beyond agreed daily hours or outside the ordinary hours span. Each day's overtime stands alone. |
| Beyond 2 hours overtime (Mon to Fri, daily) | 200% | Each day's overtime is calculated separately and does not carry over to the next day. |
| Hours worked over 38 in a week (weekly trigger) | 150% / 200% | Overtime also applies where a full time employee works more than 38 ordinary hours in a week, even if no single day exceeded ordinary hours. First 2 hours at 150%, remainder at 200%. |
| Saturday overtime, first 2 hours | 150% | Applies where Saturday is not part of a normal work pattern. Minimum 3 hours where employee has already worked 38 hours Monday to Friday. |
| Saturday overtime, after 2 hours | 200% | Continues from the 150% rate above. |
| Sunday | 200% | Penalty rate applies. |
| Public holiday | 250% | Penalty rate applies. |
When does overtime apply for part time employees?
A part time employee who works additional hours beyond their agreed contracted hours is paid at ordinary rates for those extra hours, provided the work is performed within the ordinary hours span (Monday to Friday 7:00am to 7:00pm, Saturday 7:30am to 12:00pm). Overtime rates only apply once the employee works more than 38 hours in the week, more than 10 hours in any one day, or outside the ordinary hours span. Any agreement to perform additional hours should be documented.
Half Hour Minimum
An employee is entitled to a minimum payment of half an hour per overtime engagement. Overtime is calculated on a daily basis and each day's overtime stands alone.
8 Hour Break Required
An employee must have at least 8 consecutive hours off duty between the end of overtime and the start of their next shift. If recalled with less than 8 hours off, all time worked is paid at 200% until 8 hours of rest has been provided.
TOIL (Time Off In Lieu): Under clause 23, an employer and employee may agree in writing to take time off instead of overtime pay. The period of time off the employee is entitled to take is the same as the number of overtime hours worked. For example, an employee who worked 2 overtime hours is entitled to 2 hours time off. The agreement must be made before or at the time the overtime is worked and must specify when the time off is to be taken. Time off must be taken within 6 months of the overtime being worked, or paid out at the applicable overtime rate if not taken within that period. A written email exchange is sufficient to form the agreement. Schedule E in the award provides a template agreement, but its use is not mandatory.
Payslip obligation: Each allowance paid must be separately identified on payslips. Allowances cannot be bundled into the base rate unless operating under a compliant annualised wage arrangement. All allowances are paid in addition to wage rates.
Where an employee is required by their employer to use their own vehicle to perform their work duties, the award requires a vehicle allowance to be paid. The award specifies its own rate. This is separate to ATO rates, which are used for income tax deduction purposes only.
| Vehicle | Award Rate per km (from 1 July 2025) | ATO Rate 2024/25 per km | Cap |
|---|---|---|---|
| Motor vehicle (car) | $0.98 | $0.88 | 400 km per week maximum |
| Motorcycle | $0.33 | See ATO | 400 km per week maximum |
The key issue: The award vehicle allowance rate ($0.98/km) is the minimum obligation for employees required to use their own vehicle for work. The ATO rate ($0.88/km) is the threshold below which no tax withholding is required. It is not the pay rate. If the ATO rate has historically been applied rather than the award rate, there is a difference of $0.10/km that may represent an underpayment. The award rate is capped at 400 km per week. Conduct a review of any work-related vehicle use by award employees and document your findings.
Meal Allowance
First Aid Allowance
Laundry Allowance
| Allowance | When it applies | Rate (from 1 July 2025) |
|---|---|---|
| Vehicle allowance (car) | Employee required by employer to use own vehicle for work duties | $0.98 per km (max 400 km per week) |
| Vehicle allowance (motorcycle) | Employee required by employer to use own motorcycle for work duties | $0.33 per km (max 400 km per week) |
| Meal allowance (overtime) | Overtime of more than 1.5 hours without 24 hours prior notice | $19.93 per meal |
| Additional meal allowance | Overtime exceeds 4 hours (in addition to first meal allowance) | $15.96 |
| First aid allowance | Designated and required to hold certificate and perform first aid duties | $16.03 per week |
| Laundry allowance (full time) | Required to wear a uniform laundered at own expense | $3.55 per week |
| Laundry allowance (part time and casual) | Required to wear a uniform laundered at own expense | $0.71 per shift (max 5 shifts per week) |
| Clothing and uniform | Employer requires specific clothing or uniform to be worn | Employer must supply or fully reimburse cost |
| Living away from home | Temporarily required to work away and stay overnight away from usual residence | All reasonable meal and accommodation costs plus travel time at ordinary rates (max 8 hours per day) |
| Late night transport | Employee finishes after safe public transport is unavailable and employer does not arrange transport | Reimbursement of reasonable cost of commercial passenger vehicle home |
38 Hours Per Week
Ongoing engagement at an average of 38 ordinary hours per week (or the number considered full time at the workplace). Hours may be averaged over a roster cycle of up to 4 weeks. All NES leave entitlements apply in full.
Written Agreement Required
Fewer than 38 ordinary hours per week on a reasonably predictable basis. A written agreement must be in place specifying hours per week, days worked, and start and finish times. Changes require written agreement. Minimum engagement is 3 consecutive hours per shift. Pro-rata entitlements apply.
25% Loading
A 25% casual loading applies on the ordinary rate in lieu of most leave entitlements. Minimum engagement is 3 consecutive hours per shift. Eligible casual employees may give written notice to their employer to convert to permanent employment under the Employee Choice Pathway.
Strict Obligations Apply
A full time employee may be paid an annualised wage in lieu of specific award entitlements. The arrangement must be in writing, identify which provisions are offset, and include an annual reconciliation against actual entitlements. Underpayment identified at reconciliation must be paid within 14 days.
Employee Choice Pathway (Casual Conversion): The previous employer-led casual conversion model has been replaced by the Employee Choice Pathway under the NES. Casual employees can now give written notice to their employer requesting to convert to permanent (full time or part time) employment if they have been employed for at least 6 months (12 months for small business employees) and believe they no longer meet the definition of a casual employee. Employers must consult with the employee and respond in writing within 21 days. An employer can only refuse the notice on specific grounds, such as where accepting it would require substantial changes to the way work is organised. If a dispute cannot be resolved internally, either party may refer the matter to the Fair Work Commission.
| Break Type | When Triggered | Duration | Paid? |
|---|---|---|---|
| Meal break | After working more than 5 hours (must be taken no later than 5 hours after commencing work) | 30 to 60 minutes | Unpaid |
| Rest break | More than 3 hours but not more than 8 ordinary hours | One 10 minute break, taken at a time determined by the employer | Paid |
| Rest breaks | More than 8 ordinary hours | Two 10 minute breaks, taken at times determined by the employer | Paid |
| Saturday overtime rest break | More than 4 hours overtime on a Saturday morning | One 10 minute break, taken at a time determined by the employer | Paid |
Overtime and meal breaks: If an employee works overtime and a meal break is not provided, the employer must pay the employee at 200% of the minimum hourly rate from when the meal break should have been taken until a break is allowed.
This provision is now in effect for all employers. The Right to Disconnect applies to small business employers from 26 August 2025. All other employers have been subject to it since August 2024.
Employees have the right to refuse to monitor, read, or respond to contact (or attempted contact) from their employer or a third party outside of working hours, unless that refusal is unreasonable. An employer must not directly or indirectly prevent an employee from exercising this right.
Employer Can Still Contact
Contacting or attempting to contact an employee outside working hours is still permitted. For example, notifying an employee of a recall to work or a rostering change. The right applies to the employee's response, not the employer's attempt to make contact.
Preventing the Right
An employer must not take adverse action against an employee for exercising the right to disconnect. This includes disciplining, penalising, or treating an employee unfavourably because they did not respond to out of hours contact.
Practical step: Review communication expectations and any policies that require employees to respond outside of working hours. Where out of hours contact is genuinely necessary, document the expectation clearly and consider whether additional remuneration is appropriate.
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual leave | 4 weeks per year (full time) | Pro-rata for part time. 17.5% leave loading applies (or higher of shift and weekend penalties). Accrues progressively. If balance exceeds 8 weeks, employer may direct leave to be taken. |
| Personal and carer's leave | 10 days per year | Accrues progressively and carries over. Casuals receive 2 unpaid days per occasion as carer's leave. |
| Compassionate leave | 2 days per occasion | Paid for full time and part time. Unpaid for casuals. Applies where a member of the employee's immediate family or household is seriously ill or has died. |
| Family and domestic violence leave | 10 days paid per year | Available in full from the start of each year. Applies to all employees including casuals. Must not be identified as FDVL on payslips where the employee has not requested it. |
| Parental leave | Up to 12 months unpaid | After 12 months service. Government Paid Parental Leave applies separately. A request for an additional 12 months must be considered. |
| Community service leave | As required | Jury service: employer pays up to 10 days at base rate (subject to jury fee offset). Voluntary emergency management leave is unpaid but protected. |
| Long service leave | Per applicable state legislation | Queensland, NSW, Victoria and other states each have separate long service leave legislation. Not governed by this award. |
Weekly or Fortnightly
Wages must be paid weekly or fortnightly. Monthly payment requires written agreement with the employee and must be structured as 2 weeks in advance and 2 weeks in arrears. Electronic funds transfer is the standard payment method.
7 Years Minimum
Employers must keep records for at least 7 years. Payslips must separately identify each allowance paid. Records must include hours worked, classification, agreed hours for part time employees, and all allowances.
Pay on Separation
All outstanding wages, leave balances, and entitlements must be paid on termination or as soon as practicable after, and no later than 7 days after the last day of employment.
From 1 July 2026
From 1 July 2026, superannuation must be paid alongside wages each pay run rather than quarterly. At the current rate of 12%, contributions will need to be made each pay cycle.
| Continuous service | Minimum notice from employer | Minimum notice from employee |
|---|---|---|
| Under 1 year | 1 week | 1 week |
| 1 to 3 years | 2 weeks | 2 weeks |
| 3 to 5 years | 3 weeks | 3 weeks |
| Over 5 years | 4 weeks | 4 weeks |
Additional notice (employer only): Where an employee is over 45 years of age and has completed at least 2 years of continuous service, one additional week is added to the employer's minimum notice period above. This additional week does not apply to notice given by the employee. Payment in lieu may be made instead of the notice period being worked out.
Redundancy pay entitlements are provided in accordance with the National Employment Standards (NES). Businesses with fewer than 15 employees are exempt from NES redundancy pay provisions. Confirm the applicable obligation at the time of any redundancy event.
Rate verification: All rates in this document reflect the 3.5% increase effective from 1 July 2025 (first full pay period on or after 1 July 2025). The award was last varied on 23 January 2026. Always confirm current rates at fairwork.gov.au/pay-and-wages/minimum-wages/pay-guides or via the Fair Work Pay and Conditions Tool (PACT). Rates are reviewed annually each July.
An annualised wage arrangement allows an employer to pay a full time employee a single annual salary that is intended to satisfy some or all of the monetary entitlements under the award, such as minimum wages, allowances, overtime rates, penalty rates, and annual leave loading. The arrangement can simplify payroll administration but comes with strict obligations. It only applies to full time employees.
The core principle: An annualised wage must be no less than what the employee would have received had they been paid strictly in accordance with the award for the hours they actually worked. The salary must absorb the relevant award entitlements, not simply replace them without regard to what the employee is owed.
The Written Notice
When an annualised wage is put in place, the employer must advise the employee in writing of the following: the annualised wage amount, the award provisions being satisfied by the salary, the method used to calculate the salary including any overtime or penalty rate assumptions, and the outer limit hours.
What Are Outer Limits
The written notice must specify the maximum number of ordinary hours in a pay period that would attract a penalty rate, and the maximum number of overtime hours, before the employee becomes entitled to additional pay on top of their salary. If the employee works beyond either outer limit in any pay period, those excess hours must be paid separately at the applicable award rate for that pay period.
| Obligation | Detail |
|---|---|
| Time and attendance records | The employer must keep a record of start and finish times and any unpaid breaks for every employee on an annualised wage arrangement. These records must be signed or electronically acknowledged by the employee as correct at the end of each pay period or roster cycle. |
| Annual reconciliation | Every 12 months from the commencement of the arrangement (and on termination of employment), the employer must calculate what the employee would have received under the award for the hours actually worked and compare it to the salary paid. |
| Shortfall payment | If the reconciliation reveals that the award entitlement exceeds the salary paid, the employer must pay the shortfall to the employee within 14 days of completing the reconciliation. |
| Outer limit top-up | If in any pay period an employee works hours beyond the outer limits specified in the written notice, those hours must be paid at the applicable award rate in that pay period. They cannot be left to the annual reconciliation. |
| Employee sign-off | Employees must sign off on their time records each pay period or roster cycle. Electronic acknowledgement is acceptable. Failure to maintain signed records removes the employer's ability to rely on the arrangement as evidence of compliance. |
Common risk: Many employers operating informal salary arrangements assume the salary is sufficient without conducting a formal reconciliation or keeping signed time records. Without these, the arrangement may not be compliant with clause 18, even if the salary appears generous. An underpayment identified years later carries significant back pay, interest, and civil penalty exposure. From 1 January 2025, intentional underpayment of wages or entitlements can also be a criminal offence.
An annualised wage arrangement under clause 18 can be ended by either party giving 12 months written notice, or by agreement between the employer and employee at any time. On termination of employment, a reconciliation must be performed and any shortfall paid within 14 days.
Written notice: Is there a current written document (contract or letter) that specifies the salary, the award provisions it covers, the calculation method, and the outer limit hours? If not, this needs to be put in place.
Time records: Are start times, finish times, and unpaid breaks being recorded for salaried employees, and are employees acknowledging those records each pay period?
Reconciliation: Has an annual reconciliation been completed within the last 12 months comparing the salary paid to what the award would have required for the hours worked?
Outer limit monitoring: Is there a process to identify when an employee works beyond their outer limit hours in a pay period, so those hours can be paid as an additional amount in that pay period rather than deferred to the annual reconciliation?
Rate verification: All rates in this document reflect the 3.5% increase effective from 1 July 2025 (first full pay period on or after 1 July 2025). The award was last varied on 23 January 2026. Always confirm current rates at fairwork.gov.au/pay-and-wages/minimum-wages/pay-guides or via the Fair Work Pay and Conditions Tool (PACT). Rates are reviewed annually each July.