Clerks – Private Sector Award 2020 - A Simple Guide for Your Business
Who Does it Cover? - The "Clerical Work" Test
The Clerks Award is an "occupational award." This means it follows the specific type of work an employee performs, rather than the industry of the employer. If an employee is "wholly or principally" engaged in clerical work, they are likely covered by this award.
To determine if the award applies, look at the tasks being performed. The legal definition of clerical work includes:
• Recording, typing, and calculating.
• Invoicing, billing, charging, and checking.
• Receiving and answering calls and attending a reception desk.
• Operating a telephone switchboard.
• Cash handling and general administrative duties of a clerical nature.
Important Note on Coverage: This award does not apply if another specific industry award already covers clerical roles for your business. For example, if your business is covered by the General Retail, Hospitality, or Aged Care awards, those specific industry awards will generally take precedence over the Clerks Award for your administrative staff.
Employment Types Made Simple
The Clerks Award recognises three primary ways to employ staff, each with specific compliance requirements:
• Full-time Employees: These staff members are engaged to work 38 ordinary hours per week (or an average of 38 hours over a set roster). They receive the full suite of leave entitlements and a consistent schedule.
• Part-time Employees: These staff work fewer than 38 hours per week on a reasonably predictable basis. A critical compliance point is the requirement for a written agreement at the start of employment. This document must specify the number of hours worked each day, the days of the week, and the specific start and finish times. Any changes to these hours or times must also be agreed upon in writing.
• Casual Employees: Casuals are engaged by the hour. To compensate for the lack of paid leave and guaranteed hours, they receive a "Casual Loading," which is an additional 25% on top of the standard minimum hourly rate.
The 3-Hour Minimum
You must pay casual employees for at least 3 hours of work for each engagement, and part-time employees for at least 3 consecutive hours per shift, even if the work is finished sooner.
Pay, Penalties, and Allowances: The Essentials
Minimum Rates
Pay is structured around classification levels. As the level of responsibility and the skills required for the job increase, the minimum hourly rate also increases. It is important to remember that for employees classified at Level 1 or Level 2, the minimum rate increases automatically as they gain years of service in that classification.
Penalty Rates and Overtime
Employees are entitled to higher rates of pay when working outside standard business hours. This includes "time and a half" (150%) or "double time" (200%) for work performed on Saturdays or Sundays, and "double time and a half" (250%) for Public Holidays. *For casual employees, if they work overtime, the overtime rate is paid in addition to their casual loading.
Higher Duties Allowance
A common risk for small businesses is the "Higher Duties" rule. If an employee is required to perform duties of a higher classification level for more than one day, you must pay them at least the minimum rate applicable to that higher level for the duration of that work.
Common Allowances
The award provides for several allowances to reimburse costs or recognise extra responsibilities:
• First Aid Allowance: Paid to employees with current qualifications appointed to perform first aid duties.
• Uniform and Laundry: Reimbursements for required uniforms and a weekly or per-shift allowance for laundering them.
• Meal Allowances: Provided when an employee works more than 1.5 hours of overtime without 24 hours' notice.
Why Correct Classification Matters
The Clerks Award uses a system ranging from Level 1 to Level 5 to categorise roles based on the skills and competency required for the job.
• Level 1: Entry level roles performing routine tasks under close direction.
• Level 5: Highly skilled roles requiring significant initiative and the ability to advise management or supervise other teams.
Classification must be based on the requirements of the job, not the employee's over-qualification or their job title.
WARNING: Incorrect classification is a primary cause of accidental underpayment claims. If an employee’s duties have evolved from Level 2 to Level 3, but their pay hasn't changed, your business faces significant back pay risks.
Remember to also progress Level 1 and Level 2 staff based on their years of service.
Watch Out for These Common Errors
• Informal Part-time Agreements: Not having the days and times for part-time staff documented in writing is a major breach.
• Short Shifts: Forgetting that every engagement or shift for casuals and part-timers must be paid for at least 3 hours.
• The 21st Birthday: Junior rates only apply to employees under the age of 21. The adult rate applies the moment they turn 21.
Pro Tip: Set a calendar reminder for a junior employee’s 21st birthday to ensure their pay is updated immediately.
Practical Compliance Tips
Ensure Accessibility: You are legally required to keep a copy of the Award and the National Employment Standards (NES) accessible to all staff, such as on a noticeboard or a shared digital folder.
Record-Keeping: Maintain accurate records of all hours worked, including start and finish times. This is vital for casuals and those on "annualised wages" to ensure they are never paid less than the award minimums.
The Right to Disconnect: Be aware that employees now generally have a legal right to refuse to monitor or respond to contact from their employer outside of working hours, unless that refusal is unreasonable.
Annual Reviews: Review job descriptions every year. If an employee’s duties have grown, their classification level (and pay) may need to move up.
The Clerks Award is manageable, and it provides the essential framework for a fair and functional workplace. Once you understand the basic principles of classification and employment types, and by focusing on clear written agreements and accurate record-keeping, you can create a transparent workplace while protecting your business from compliance risks.
If anything here has raised any questions, reach out to FiveSeven, we can help you navigate through the uncertainty.
The information above forms part of our Understanding Your Award series and provides a high-level overview only. Further obligations may apply depending on your business and workforce. This Information is current at the time of publication Jan 2026. Workplace laws and awards may change.
