{"id":281231,"date":"2025-05-27T08:24:09","date_gmt":"2025-05-27T08:24:09","guid":{"rendered":"https:\/\/www.aihr.com\/?post_type=hr-glossary&p=281231"},"modified":"2025-05-27T08:24:19","modified_gmt":"2025-05-27T08:24:19","slug":"reasonable-overtime","status":"publish","type":"hr-glossary","link":"https:\/\/www.aihr.com\/hr-glossary\/reasonable-overtime\/","title":{"rendered":"Reasonable Overtime"},"content":{"rendered":"\n

What is reasonable overtime?<\/h2>\n\n\n\n

In Australian employment law, \u201creasonable overtime\u201d refers to additional work hours considered fair and lawful under Section 62 of the Fair Work Act 2009.<\/p>\n\n\n\n

Whether overtime is reasonable depends on several factors, including business needs, the employee\u2019s personal circumstances, the nature of their work, and any associated health and safety risks. Employers can request that employees work extra hours, but only if those requests are reasonable. Employees are not obligated to comply with unreasonable overtime demands.<\/p>\n\n\n

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What makes overtime reasonable?<\/h2>\n\n\n\n

Section 62 of the Fair Work Act 2009<\/a> provides a framework for determining whether overtime<\/a> is reasonable. These criteria are designed to ensure employees aren\u2019t overburdened and that individual and business needs are both considered. Reasonableness must be assessed case by case, taking the following factors into account:<\/p>\n\n\n\n

1. Health and safety<\/h3>\n\n\n\n

Are the additional hours likely to impact the employee\u2019s physical or mental health? Long hours without adequate rest can lead to fatigue, burnout, or increased accident risk, especially in roles that involve physical labor, operating machinery, or decision-critical work. If the extended hours put an employee\u2019s wellbeing at risk, they\u2019re unlikely to be considered reasonable.<\/p>\n\n\n\n

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Did you know?<\/strong><\/h4>\n\n\n\n

Fatigue from long hours is linked to higher rates of workplace accidents<\/a> and significant economic losses in Australia.<\/p>\n<\/blockquote>\n\n\n\n

2. The employee\u2019s personal circumstances<\/h3>\n\n\n\n

Personal commitments such as childcare, study, or family responsibilities must be considered. For example, expecting a parent to stay late without notice could be unreasonable if it interferes with their caregiving obligations. Reasonableness must reflect the employee\u2019s situation, not just operational convenience.<\/p>\n\n\n\n

3. Workplace or business needs<\/h3>\n\n\n\n

Business demands, such as project deadlines, seasonal peaks, or maintaining essential services, can justify overtime. However, operational needs alone don’t make overtime reasonable. It must be balanced with other factors, particularly the employee\u2019s capacity and consent.<\/p>\n\n\n\n

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4. Compensation entitlements<\/h3>\n\n\n\n

Whether the employee is compensated for overtime through penalty rates<\/a>, time off in lieu<\/a>, or another arrangement affects whether the request is fair. Asking employees to work extra hours without proper compensation reduces the likelihood of the overtime being viewed as reasonable.<\/p>\n\n\n\n

5. Industry work patterns<\/h3>\n\n\n\n

Customary working patterns in certain industries, like construction, emergency services, or healthcare, typically include longer or irregular hours. While these norms are relevant, they don\u2019t override other considerations like fatigue risk or lack of pay.<\/p>\n\n\n\n

6. Amount of notice given<\/h3>\n\n\n\n

Short-notice overtime requests may be considered unreasonable if they disrupt the employee\u2019s ability to plan or meet personal commitments. Adequate notice allows time for arrangements and reduces the strain on employees.<\/p>\n\n\n\n

7. Prior agreement<\/h3>\n\n\n\n

If the employee has previously agreed to work overtime (through a formal agreement or established practice), this can support the request\u2019s reasonableness. Still, prior agreement doesn\u2019t cancel out the need to assess health, safety, and personal factors each time.<\/p>\n\n\n\n

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HR tip<\/strong><\/h4>\n\n\n\n

Encourage employees to flag overtime concerns early by creating a safe, confidential feedback channel, so HR can identify potential burnout risks<\/a> before they escalate.<\/p>\n<\/blockquote>\n\n\n\n

How many hours of overtime is reasonable in Australia?<\/h2>\n\n\n\n

For full-time employees, the Fair Work Act 2009 sets a 38-hour standard workweek, plus \u201creasonable additional hours\u201d. What\u2019s \u201creasonable\u201d depends on the context, but generally, working a few extra hours per week (e.g., two to five hours) may be acceptable if it’s occasional, voluntary, and properly compensated.<\/p>\n\n\n\n

However, consistently working well beyond 38 hours, especially without sufficient rest or extra pay, can cross the line into unreasonable territory. Research backs this up: according to the WHO<\/a> and ILO, working more than 55 hours a week increases the risk of stroke by 35% and heart disease by 17%.<\/p>\n\n\n\n

For part-time or casual employees, reasonable overtime should be assessed relative to their usual hours. A part-time employee contracted for 20 hours might reasonably work a few additional hours during peak times, but expecting them to regularly work full-time hours without adjusting their contract may be unreasonable, depending on circumstances.<\/p>\n\n\n\n

In all cases, whether additional hours are reasonable will be assessed using the criteria in Section 62 of the Fair Work Act, including personal circumstances, business needs, compensation, and health and safety considerations.<\/p>\n\n\n

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Master the design of fair and compliant overtime strategies<\/strong><\/h3>\n

Learn how to navigate Australia’s complex overtime landscape while aligning with the Fair Work Act and employee wellbeing priorities.<\/p>\n

AIHR\u2019s Compensation & Benefits Certificate Program<\/a> teaches you how to structure compensation practices that are both compliant and sustainable, including how to approach overtime, penalty rates, and time-off arrangements.<\/p>\n

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The law in action: Case examples<\/h2>\n\n\n\n

Example 1: Australasian Meat Industry Employees Union v Dick Stone Pty Ltd<\/h3>\n\n\n\n

Dick Stone Pty Ltd<\/a>, a long-standing meat wholesaler, was fined $93,000 for breaching employment law by requiring a worker to perform unreasonable overtime.<\/p>\n\n\n\n

The employee, Mr. Samuel Boateng, was issued an employment pack stating his \u201cordinary hours\u201d were 50 per week, far above the 38-hour statutory maximum. His shifts began at 2:00 a.m. and lasted until 11:30 a.m. Monday through Friday, with additional hours on Saturday. The employer was responsible for proving that these hours were reasonable under Section 62.<\/p>\n\n\n\n

The court found they were not, citing health and safety concerns, fatigue risk (given the use of knives), lack of overtime pay, and the employee\u2019s vulnerability as a recent immigrant unfamiliar with Australian laws. The employer was penalized for breaching both the National Employment Standards and the applicable award.<\/p>\n\n\n\n

Example 2: Rugg v Commonwealth of Australia as represented by the Department of Finance & Anor<\/h3>\n\n\n\n

In a high-profile case, Sally Rugg, former Chief of Staff to MP Monique Ryan, challenged the reasonableness of working more than 70 hours per week<\/a>. She alleged that she faced adverse action after refusing to work excessive hours, despite her contract allowing for \u201creasonable additional hours\u201d.<\/p>\n\n\n\n

The matter was settled outside of court, but it sparked national debate over what \u201creasonable\u201d overtime looks like, particularly for white-collar and political staffers. The case underscored the risks of relying on vague contract clauses without assessing the actual burden placed on employees.<\/p>\n\n\n\n

Example 3: Chin v Visual Thing Australia Pty Ltd [2024] FedCFamC2G 896<\/h3>\n\n\n\n

Ms. Chin, a full-time creative retouching specialist, was required to work a 40-hour week<\/a>, above the NES standard. While longer hours were common in her industry, the court found that her employer had not demonstrated why the extra hours were necessary for her role, which didn\u2019t involve managerial duties.<\/p>\n\n\n\n

She also wasn\u2019t paid overtime, breaching the applicable award. The court ruled that requiring those additional hours, without justification or compensation, violated Section 62 of the Fair Work Act 2009.<\/p>\n\n\n

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Overtime and HR responsibilities<\/h2>\n\n\n\n

HR plays a critical role in managing overtime lawfully, fairly, and sustainably. As an HR professional, these are the key responsibilities you should be focusing on:<\/p>\n\n\n\n

Consult employees before scheduling extra hours<\/h3>\n\n\n\n

Overtime should never be a surprise. HR must ensure employees are consulted in advance and have the opportunity to accept or refuse additional hours, particularly if the hours may be borderline in terms of reasonableness. Proper consultation supports fairness and reduces dispute risks.<\/p>\n\n\n\n

Address health and safety risks of long shifts<\/h3>\n\n\n\n

HR must assess the impact of extended working hours on employee wellbeing, especially for roles involving physical labor, driving, or critical decision-making. Fatigue management policies and risk assessments should apply to overtime arrangements to meet WHS obligations.<\/p>\n\n\n\n

Ensure compliance with awards, enterprise agreements, and contracts<\/h3>\n\n\n\n

Many modern awards and enterprise agreements have specific rules about overtime rates, rostering<\/a>, and rest periods. HR must know these instruments and ensure all overtime is managed and paid according to the entitlements.<\/p>\n\n\n\n

Maintain clear and up-to-date overtime<\/h3>\n\n\n\n

HR should develop and regularly update workplace policies on overtime handling, requirements, approval, and compensation. These policies should be communicated clearly to all staff for consistent application.<\/p>\n\n\n\n

Train managers on overtime rules and risks<\/h3>\n\n\n\n

Supervisors are often the ones approving or assigning overtime. HR should equip them with the knowledge to understand what\u2019s considered \u201creasonable\u201d, how to assess requests, and when to escalate concerns.<\/p>\n\n\n\n

Ensure fair and non-discriminatory overtime distribution<\/h3>\n\n\n\n

Overtime opportunities or burdens shouldn\u2019t fall unfairly on certain groups. HR should monitor patterns to prevent bias, whether intentional or not, and foster a fair and inclusive workplace.<\/p>\n\n\n\n