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Daylight Saving Payroll

Daylight Saving Payroll

Daylight Saving Has Started

Daylight saving began at 2:00 am on October 4th, 2015 when clocks went forward one hour and will finish on Sunday April 3rd, 2016, when clocks are put back. It effects NSW, VIC, TAS, SA and the ACT. Daylight saving is not observed in Qld, WA or the NT.


What Does the Fair Work Act say about Daylight Saving?

The Fair Work Act does not contain rules about Daylight Saving, so employers need to consider arrangements for the payment of wages for employees affected by changes to their hours of work as a result of daylight saving.


Employees most likely to be impacted are those who work shifts at change over to and from daylight saving – these workers will include health and aged care, cleaning, security, hotels, metals manufacturing, clothing workers, road workers and any other businesses that operates 24/7. These employees will generally work one hour less at the time of introduction, and one hour more at cessation of daylight saving.


How Does it Affect Your Workplace?

Employers and employees also need to check the relevant award or agreement to see if there are provisions relating to daylight saving. Here is an example of a daylight saving clause:


Manufacturing & Assoc Industries & Occupations Award 2010 – 36.6 Daylight saving

(a) Where by reason of State or Territory legislation summer time is prescribed as being in advance of the standard time in that state, the length of any shift commencing before the time prescribed by the relevant legislation for the commencement of a summer time period or commencing on or before the time prescribed by the relevant legislation for the termination of a summer time period, is deemed to be the number of hours represented by the difference between the time recorded by the clock at the beginning of the shift and the time so recorded at the end of the shift. The time of the clock in each case is to be set to the time fixed by the relevant legislation.


In the absence of specific provisions relating to daylight saving, the parties may wish to adopt industry standards or develop their own procedures to deal fairly with employees. Whatever arrangements are put in place, it is important for employers to communicate with their employees so that they know what will happen on the changeover dates.


How Do You Account for Daylight Saving Pay?

The most common method of payment is as follows:

When daylight saving comes into effect or is discontinued, employees shall be paid by the time of the clock at the commencement and conclusion of their shifts. Employees who are at work when the clocks are altered will either work one hour longer for no additional pay or one hour less for no reduction in pay to take daylight saving into account.