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Employment Relations: Employment agreement builder

Section 7: Payment – Allowances, Penal Rates, Overtime and Expenses

There are a range of allowances that may be relevant to different employment relationships. Examples of allowances that may be relevant are: Tools; Clothing; Uniform; Meals; Travel; etc.

Where an allowance is made to recognise an employee for working on a particular day of the week (say Sunday), or a public holiday, this is more appropriately described as a penal rate and

Allowance Clause (1)
 
The Employee shall be paid a allowance of per , which shall be paid to the Employee on a basis.


Allowance Clause (2)
 
The Employee shall be paid a allowance of per , which shall be paid to the Employee on a basis.


Allowance Clause (3)
 
The Employee shall be paid a allowance of per , which shall be paid to the Employee on a basis.


In addition to allowances, there are certain stipulations that may be put in place in the event that situations arise. Penal rates and overtime rates are an example. The employee should be informed in advance if any of these are likely to apply.

As well, there may be an arrangement set out between the parties covering expenses, and how they are to be reimbursed.

If you want to include a penal rate in your agreement to recognize an employee for working on a particular day (say a Sunday) use this penal rates clause. Do not, however, use this clause for penal rates on public holidays. Penal rates on public holidays should be dealt with in section 8.

Penal Rates
 
The parties agree that the Employee shall be entitled to penal rates for working on . Where penal rates are payable, they shall be paid at the following rate: .


Overtime
 
The parties agree that where the Employee works requested overtime, the Employee shall be entitled to payment for each hour of overtime at the following rate: .


Reimbursement of Expenses
 
The Employee shall be entitled to reimbursement by the Employer of all expenses reasonably and properly incurred by the Employee in the performance of their duties, provided the Employee produces appropriate receipts to the Employer when requesting reimbursement.


Reimbursement of Travel and Accommodation Expenses
 
The Employee may be required to travel from time to time as part of their duties. The Employer shall reimburse the Employee for their reasonable work related travel and accommodation costs upon production of appropriate receipts.
About OER | Department of Labour, May 2006. © The Crown