Tool allowance & overtime in the Manufacturing Award
Overtime is calculated on an employee's ordinary hourly rate.
Whether the tool allowance is included in the ordinary hourly rate and paid during overtime depends on the type of work employees do.
Vehicle manufacturing employees
Vehicle manufacturing employees who get paid a tool allowance won't get it paid during overtime.
This is because the tool allowance isn't an all purpose allowance for these employees and not included in the ordinary hourly rate.
All other employees
All other employees who get paid a tool allowance get it paid during overtime.
This is because the tool allowance is an all purpose allowance and included in the ordinary hourly rate.
A tool allowance is paid to:
- tradespersons or apprentices
- carpenters or joiners or shipwrights/boatbuilders.
Manufacturing Award - clause 53.1 sets out the tool allowance for vehicle manufacturing employees, and clauses 30.2(c) and 30.2(d) set out the tool allowances for all other employees.
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