Understanding Rostered Days Off (RDO's)

February 2, 2024
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3 minread

Let's dive into the world of Rostered Days Off (RDO) and explore some scenarios together.

So, what is an RDO?

Think of RDOs as your well-deserved paid days off! Essentially, the hours for your RDO come from the hours you've already worked in previous pay periods.

Here's a common scenario: If you work 40 hours per week, 2 hours from each week contribute to your RDO balance. After four weeks, you've accumulated 8 hours, which means you can take a day off and reset your RDO balance to 0.

What options exist for RDOs?

The beauty of RDOs lies in their flexibility! It's all about finding what works best for both you and your employer. Here are some common options:

rostered days off

For our examples, we'll stick with 2 hours, as it's the most common.

RDO Accrual vs. RDO Banking

There are two main methods to calculate RDOs: banking and accrual. Banking involves setting aside a fixed number of hours each week, while accrual involves accumulating a fraction of hours for each day worked.

The perk of banking? It's consistent!

Whether you're part-time, taking leave, or had a short workday, you still bank 2 hours per week. Accrual, on the other hand, can get a bit tricky with fluctuating hours being accrued depending on the number of hours worked.

Do RDOs affect Super and Entitlements?

Absolutely! RDOs count towards Ordinary Time Earnings (OTE), ensuring that your super and entitlements remain consistent with each pay period. When you bank RDOs, your super and entitlements are banked too, so no worries there!

Can Part-Time staff benefit from RDOs?

Yes indeed! Even if you're working fewer hours, you can still enjoy RDOs. For example, if you work 20 hours a week, you'd bank 2 hours for your RDO and get paid for 18 hours.

What happens when staff are on leave?

The exact same rules apply, let say the employee goes on Annual Leave for 40 hours, 2 hours are still banked as RDO, effectively converting 2 hours of Annual Leave into RDO, which makes sure the employee has enough RDO hours for when an RDO is called.

Who benefits more from RDOs?

This depends on the industry and the conditions around when the RDO can be taken, but both parties might benefit from an RDO. From flexibility during bad weather (employer call an RDO), to enjoying long weekends (employee call an RDO).

At Microkeeper, we've found that staff absolutely love RDOs. Sacrificing 2 hours of pay per week for a day off every 4 weeks? That's a great deal!

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