18Shift penalty payments

18 Shift penalty payments

(1) A shift penalty payment is a kind of payment not included in salary. (2) A payment is a shift penalty payment if it: (a) does not come within a single overall rate of salary; and (b) is in the nature of an allowance or payment that is additional to the relevant ordinary rate of salary; and (c) satisfies the criteria stated in subsection (3). (3) For the purposes of paragraph (2)(c), the following criteria are stated: (a) the payment is payable because the employee to whom it is payable undertakes the employee’s normal duties: (i) outside the hours that are regarded in the relevant industry as the normal hours of work or the standard hours of work; or (ii) from time to time during those normal hours of work but as part of a pattern of working hours that are outside those standard hours of work; (b) the payment is paid: (i) to an employee for work that the employee has in fact undertaken; or (ii) to all employees within a class of employees as a payment in the nature of a commuted allowance or penalty. (4) For the purposes of subparagraph (3)(b)(ii), a payment is a payment in the nature of a commuted allowance or penalty if it is paid on the basis of liability to undertake shift work (whether or not shift work is in fact undertaken to any particular extent, or at all) and instead of additional payment for shift work in fact undertaken.