Employers need to be careful of a couple of traps where their employees are working overtime. There will be no superannuation guarantee charge where the employer contributes the appropriate percentage (currently 9.5 per cent) of an employee’s ‘ordinary time earnings’ into their superannuation fund.
The starting position is that ‘ordinary time earnings’ means ‘earnings in respect of ordinary hours of work’. But what are ordinary hours? Are they the hours specified in the award or agreement as ordinary hours? Or are they the hours that the employee regularly works? This issue was examined by the Full Federal Court in its recent decision in Bluescope Steel (AIS) Pty Ltd v Australian Workers’ Union.