For thousands of Australian shift workers, Easter Sunday will come with an unexpected cost: an hour of unpaid labor. A glitch related to the complete of daylight saving time means employees in several states will effectively work an extra 60 minutes without additional pay, a situation labor advocates are calling a “daylight robbery.” The issue stems from the practice of paying “by the clock,” where wages are calculated based on start and finish times rather than actual hours worked.
This year, as clocks rolled back from 3:00 am to 2:00 am on Sunday, April 7th, in New South Wales, Victoria, South Australia, Tasmania, and the Australian Capital Territory, those working overnight shifts found themselves in a peculiar position. An employee clocking in at 10:00 pm and finishing at 6:00 am, for example, would have completed a nine-hour shift but may only be paid for eight. The impact is particularly acute given that Easter Sunday is a public holiday in all these states except Tasmania, meaning many workers would normally receive penalty rates for their time.
The “By the Clock” System and Its Disadvantages
The problem isn’t new, but it remains widespread. According to research from the University of Melbourne, more than one million Australians are employed in industries that operate around the clock, including hospitals, service stations, fast food restaurants, and warehouses. While some enterprise agreements do account for the extra hour created by the daylight saving change, paying “by the clock” remains the default arrangement for many, particularly in lower-wage sectors.
Josh Callinan, a spokesperson for the Retail and Fast Food Workers Union, explained that the practice has been a concern for decades. “I recall the concern when I worked overnight in service stations in the 1990s,” he told AAP. He emphasized that while some employers are proactive, many are not. The Australian Associated Press reported on the issue Thursday, highlighting the potential financial impact on vulnerable workers.
The award covering Australia’s approximately 14,000 service station staff explicitly states that daylight saving does not entitle employees to an extra hour of pay, demonstrating how entrenched this practice is within certain industries. This means that despite working an additional hour, these employees are legally entitled to no extra compensation. Callinan pointed out the imbalance: workers *do* receive an extra hour’s pay when daylight saving begins in October, but that day isn’t a public holiday, and the same worker isn’t necessarily on shift for both transitions.
Who is Protected, and Who is Not?
The situation isn’t universal. Some workers are protected by agreements that ensure they are paid for every minute worked, regardless of the clock. Reserve Bank security guards and Victorian public mental health workers are among those who benefit from such provisions. Although, these represent a minority. The vast majority of overnight workers, particularly those in retail, hospitality, and transportation, are vulnerable to losing an hour’s pay.
The Albanese government has acknowledged the issue but deferred questions to the Fair Work Ombudsman, which stated it was unable to comment on policy. This response comes as the government simultaneously champions increased wages for low-income and award-reliant workers, with Employment Minister Amanda Rishworth stating, according to SBS News, “Low-paid workers are more exposed to financial shocks and they experience greater financial hardship, and we support lifting their wages.”
The morning’s headlines in 90 seconds, including evacuations amid Northland flooding, the IOC makes a ruling on trans athletes, and Christchurch’s new stadium opens. (Source: 1News)
A Historical Pattern of Disadvantage
The issue highlights a long-standing tension between the convenience of standardized timekeeping and the fair compensation of workers. The “by the clock” system, while seemingly straightforward for employers, often fails to account for the realities of shift work and the impact of daylight saving adjustments. The fact that the same worker may not be scheduled for both the start and end of daylight saving further exacerbates the problem, creating a situation where some are systematically short-changed.
The Retail and Fast Food Workers Union is urging employers to voluntarily compensate their staff for the extra hour worked. However, without legislative changes or widespread adoption of more equitable enterprise agreements, many workers will likely continue to lose out. The situation underscores the need for a broader review of pay practices in industries reliant on shift work, particularly in light of the rising cost of living and the government’s commitment to supporting low-wage earners.
The Fair Work Ombudsman provides information and advice on workplace rights and obligations. Workers who believe they have been underpaid are encouraged to contact the Ombudsman for assistance. More information can be found on their website: https://www.fairwork.gov.au/
The next key date to watch is the upcoming annual wage review, where the Fair Work Commission will consider submissions from employers, unions, and the government regarding appropriate wage increases. The outcome of this review could have significant implications for millions of Australian workers, including those affected by the daylight saving glitch.
What are your thoughts on this issue? Share your experiences and opinions in the comments below. And please share this article with your colleagues and friends to raise awareness about this key issue.
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