What Are Hourly Workers?
Hourly workers are employees who are paid based on the number of hours they work, rather than receiving a fixed salary. Their pay is calculated by multiplying their hourly wage rate by the total hours worked during a specific pay period. This type of employment arrangement is commonly used across industries like retail, hospitality, construction, healthcare, and warehousing, where workforce needs fluctuate.
Hourly employees may work on a full-time, part-time, or casual basis, and their entitlements and conditions are governed by the National Employment Standards (NES), modern awards, and applicable enterprise agreements in Australia.
Fair Work – Pay for Hourly Employees
Key Characteristics of Hourly Workers
- Wages are time-based: Paid only for hours worked, including overtime if applicable
- Entitlements vary: Depending on their employment status (casual, part-time, full-time), they may receive different benefits
- Roster-based schedules: Work hours can vary week-to-week based on business needs
- Additional pay: May be entitled to penalty rates, loadings, and allowances under their relevant award
- Time-tracking required: Employers must keep accurate records of start/finish times and breaks
Types of Hourly Employment in Australia
Hourly workers fall into three main categories, each with specific legal implications and benefits:
1. Full-Time Hourly Workers
- Work approximately 38 hours per week
- Receive full entitlements like paid leave and public holiday pay
- May have set or variable shifts depending on the role
2. Part-Time Hourly Workers
- Work regular hours less than 38 per week
- Entitled to leave and other benefits on a pro-rata basis
- May have consistent weekly schedules
3. Casual Hourly Workers
- No guaranteed hours; shifts vary based on demand
- Receive a casual loading (usually 25%) in lieu of leave entitlements
- Typically not paid for sick or annual leave
- Can be offered casual conversion to permanent status under certain conditions
Award Interpretation for Hourly Workers
One of the biggest complexities for employers managing hourly workers is navigating Modern Awards, which dictate:
- Minimum hourly wage
- Overtime rules
- Penalty rates (e.g., weekends, nights, public holidays)
- Break entitlements
- Allowances (e.g., travel, meals, uniform)
For example, under the General Retail Industry Award, a casual retail worker on a Sunday might be entitled to their base hourly rate plus 100% loading. Managing this manually is prone to error and compliance risk.
Explore how Microkeeper automates Award Interpretation
Pros and Cons of Hiring Hourly Workers
Advantages for Employers:
- Flexibility: Scale labour based on seasonal or fluctuating demand
- Cost control: Pay only for hours worked
- Wider availability: Attracts students, parents, and others needing flexible work
Disadvantages for Employers:
- Scheduling complexity: Constant rostering and tracking required
- Compliance risk: High exposure to underpayment claims if awards are misinterpreted
- Higher turnover: Casual hourly roles often experience more churn
Benefits for Employees:
- Control over availability: Particularly in casual or part-time roles
- Opportunity to earn extra: Through overtime or penalty rates
- Foot in the door: Great for gaining experience or transitioning to permanent work
Compliance Requirements for Hourly Workers
Under the Fair Work Act 2009, employers must:
- Pay at least the minimum award rate for the role
- Keep accurate time and wage records for 7 years
- Provide compliant payslips
- Ensure access to entitlements (leave, superannuation, etc.) as applicable
- Pay superannuation if an employee earns more than $450/month (unless under 18 and working less than 30 hours a week)
ATO – Superannuation for Employees
How Microkeeper Supports Hourly Workforces
Microkeeper helps employers manage hourly workers efficiently and compliantly with:
- Real-time clock-in/out systems, including biometric and facial recognition
- Award-compliant payroll processing, including automated penalty rate application
- Dynamic rostering and shift planning tools
- Mobile access so employees can check rosters, clock in, and view payslips
- Leave and certificate tracking integrated with timesheets and payroll
➡️ See how Microkeeper simplifies workforce management
FAQs About Hourly Workers
Do hourly workers get paid for public holidays?
Only if they are scheduled to work that day and are entitled under their employment type and award.
Can hourly workers be salaried?
No, by definition they are paid per hour. However, some employers offer “loaded rates” for simplicity, which must still meet minimum obligations.
Do casual hourly workers get superannuation?
Yes, if they earn more than $450/month (soon to be abolished) or regardless of amount under new super legislation reforms.
Final Thoughts
Hourly workers are a vital part of Australia's workforce, providing flexibility and accessibility for both employers and employees. But managing them requires precision, especially when it comes to payroll, award interpretation, and compliance. Whether you're rostering casual retail staff or running a hospitality venue with part-time servers, tools like Microkeeper make managing hourly workers accurate, streamlined, and compliant.
Disclaimer: This article is for general information only and does not constitute legal or financial advice. Please consult the Fair Work Ombudsman or a qualified HR advisor for tailored guidance.
