An overview of the Banking, Finance, and Insurance Award

The Banking, Finance, and Insurance Award 2020 defines the employment standards for individuals working in these financial sectors. This award outlines the requirements for fair compensation and proper working conditions to protect employees within these industries.

In this overview, we summarise the fundamental aspects of the Banking, Finance, and Insurance Award, including topics like who the award covers, various employment types, guidelines for rostering, pay structures, allowances, superannuation, and leave entitlements. Familiarising yourself with these details is essential for staying compliant with legal standards and fostering fair and ethical employment practices in your organisation.

For more in-depth information, this article offers links to detailed discussions on each of these subjects.

Note: The information provided in this article is accurate as of 04/09/2024. As award conditions and rates are subject to change, please refer to the latest version of the Banking, Finance, and Insurance Award 2020 for the most current information.

Banking, Finance, and Insurance Award coverage

The award applies to a range of roles within the banking, finance, and insurance industry. You can explore the basics of this award's coverage below:

Who’s covered

• Banking, finance, and insurance employees: Includes roles such as bank tellers, financial advisors, loan officers, insurance agents, claims adjusters, underwriters, credit analysts, and actuaries, who perform tasks like customer service, risk assessment, and financial planning.
• On-hire employees and trainees: Includes temporary staff from staffing agencies, such as financial advisors and claims processors hired for specific projects or peak periods, as well as trainees in group training programs gaining experience in financial advising and insurance sales while completing their education.

Who isn’t covered

• High-level executives and senior managers: The award excludes individuals in these roles because of their specialised responsibilities and high-level positions.
• Public sector employees under state awards: Employees in state-run financial services fall outside this award’s coverage if governed by state-specific public sector awards.
• Employees covered by enterprise agreements: Those working under unique enterprise agreements or industry-specific awards fall outside the scope of this award.

Practical example: James, a loan officer at a regional bank, spends 80% of his time processing loan applications and assessing client creditworthiness, with the remaining 20% focused on customer service tasks. Since his role directly supports banking operations, the Banking, Finance, and Insurance Award covers him.

Learn more about Banking, Finance, and Insurance Award coverage

Employment types under the Banking, Finance, and Insurance Award

The Banking, Finance, and Insurance Award defines different employment types, each with specific terms and conditions:

• Full-time: These employees work on a permanent basis and typically have set weekly hours, which provide job security and benefits like paid leave.
• Part-time: These employees work fewer hours than full-time staff but maintain ongoing employment. They receive proportional benefits, including paid leave, based on their contracted hours.
• Casual: Casual employees work on an as-needed basis without a fixed schedule. They don't have guaranteed hours each week and receive a higher hourly rate (casual loading) to compensate for the lack of job stability.
• On-hire employees: These are workers hired through recruitment agencies for specific roles within the industry. Their employment type (full-time, part-time, or casual) is determined by the contract with the agency and the nature of the assignment.
• Trainees: These employees participate in structured training programs combining practical work experience with formal education. They can be either full-time or part-time, depending on the training requirements.

Banking, Finance, and Insurance Award ordinary hours

The award sets out the standard ordinary working hours for various types of employees, ensuring consistent and fair practices:

• Full-time employees: They typically work 38 ordinary hours per week. Employers can average these hours over one to four weeks, spreading them across five consecutive days (Monday to Friday) or up to five and a half days (Monday to Saturday).
• Part-time employees: They work less than 38 hours per week, with their specific hours clearly defined in a written agreement. Employers can also average these hours over a set period.
• Casual employees: They can work up to 38 hours per week, with each shift requiring a minimum of two consecutive hours of engagement. Employers adjust casual employees’ hours based on business needs.
• On-hire employees: These employees follow the ordinary hours specified in their contracts with recruitment agencies, mirroring the standard conditions of similar roles within the organisation.
• Trainees and apprentices: They typically adhere to full-time or part-time hours based on their training agreements, which outline their expected schedule.
• Shiftworkers: Shiftworkers usually work 38 hours per week. Definitions for shifts include afternoon, early morning, and night, each with specific start and end times.

Employees generally work ordinary hours between 7:00 AM and 7:00 PM from Monday to Friday and 8:00 AM to 12 noon on Saturdays. Employers can extend hours until 9:00 PM on one designated night per week if specified in advance.

Rostering and breaks under the Banking, Finance, and Insurance Award

The Banking, Finance, and Insurance Award sets specific guidelines for rostering and breaks to ensure fair and consistent work practices. These rules help maintain a balanced work environment and compliance with industry standards.

Rostering

• Regular and predictable hours: Full-time and part-time employees should have consistent, written agreements for their work hours.
• Notice periods: While the award doesn’t specify exact notice requirements, providing at least seven days' notice for roster changes is advisable unless urgent situations arise or there’s mutual agreement.
• Roster flexibility: Employers can stagger start and finish times to improve operational efficiency.
• Flexible working requests: Employees can request flexible arrangements for personal reasons. Employers must consider these requests in line with the Fair Work Act and National Employment Standards (NES) and can only reject them on reasonable business grounds.
• Make-up time: Employees can take time off during regular hours and make up those hours later.
• Rostered days off: Employees can take or accrue rostered days off with employer consent, recorded in time and wages records.

Breaks

• Unpaid meal breaks: Employees working five or more hours must take at least a 30-minute unpaid meal break. Agreement allows those on shorter shifts to forgo a break. Meal breaks don't count as work time.
• Rest breaks: Employees must take rest breaks during their workday, scheduling these breaks either by mutual agreement or based on the employer’s decision when no agreement exists. These rest breaks are typically unpaid unless both parties agree otherwise.
• Overtime breaks: Employees working overtime take meal breaks, with the specific terms depending on the length and timing of the overtime worked. These meal breaks are unpaid.

Learn more about Banking, Finance, and Insurance Award employment types, ordinary hours, and rostering

Banking, Finance, and Insurance Award pay rates

The Banking, Finance, and Insurance Award sets minimum pay rates for employees, including full-time, part-time, casual, juniors, trainees, and those eligible for supported wages. For instance, a Level 2 full-time employee earns $27.17 per hour or $1,032.30 per week, while casual employees receive an additional 25% loading on their hourly rate. Junior employees under 21 earn a percentage of the adult rate, which varies by age. Trainees and employees with disabilities receive pay based on specific guidelines related to their training level or assessed capacity.

Employers must pay employees in line with a weekly, fortnightly, or monthly (if agreed) pay period, using cash, cheque, or electronic funds transfer. Payslips for each pay period should clearly itemise all allowances and deductions. Upon termination, employers must settle all outstanding wages within seven days. Annualised wage agreements are also an option, provided they meet the award’s conditions and are reviewed annually to ensure fair compensation.

See the full list of Banking, Finance, and Insurance Award pay rates

Banking, Finance, and Insurance Award allowances

The Banking, Finance, and Insurance Award provides several allowances to compensate employees for additional duties and expenses incurred during work. For example, employees required to work overtime past 6:00 PM receive a meal allowance of $20.73, with an extra $17.04 if the overtime extends beyond five and a half hours. Employees on standby or required to be on call outside of regular hours receive $21.88 per day from Monday to Friday, and $44.70 per day on weekends and public holidays.

Additional allowances include a first aid allowance of $18.99 per week for accredited first aid officers, reimbursement for all reasonable travel expenses for employees required to travel for work, and a motor vehicle allowance of $0.99 per kilometre for employees using their own vehicles. For regular work-related travel, employees may receive a weekly allowance of $128.95 for smaller vehicles or $159.07 for larger vehicles. These allowances ensure that employees are fairly compensated for any extra costs associated with their job duties.

See the full list of Banking, Finance, and Insurance Award allowances

Banking, Finance, and Insurance Award superannuation

The Banking, Finance, and Insurance Award mandates that employers make superannuation contributions of 11.5% of an employee’s ordinary time earnings for all employees over 18 who earn $450 or more per month, as well as those under 18 working more than 30 hours a week. Employees have the option to choose their own superannuation fund. If they don't select one, employers must check with the ATO for a stapled fund. In the absence of a chosen or stapled fund, employers should contribute to approved default funds, such as CareSuper, AustralianSuper, Sunsuper, and others listed under the award.

Employees can also make voluntary post-tax contributions to their superannuation fund through salary sacrifice arrangements, provided they inform their employer. Employers must pay these additional contributions within 28 days after deduction. Superannuation contributions must also continue during periods of paid leave or for up to 52 weeks if the employee is absent because of a work-related injury or illness and continues to receive payments from the employer.

Overtime and penalty rates under the Banking, Finance, and Insurance Award

The Banking, Finance, and Insurance Award sets guidelines for compensating employees who work beyond their ordinary hours or during unsociable times.

Overtime

Employees earn overtime pay for any work directed by their employer outside of the standard ordinary hours. For overtime from Monday to Saturday, employees receive 150% of their minimum hourly rate for the first three hours and 200% for any hours beyond that. On Sundays and rostered days off, an employer needs to pay overtime at 200% of the minimum hourly rate. If employees finish overtime and start their next shift with less than a 10-hour break, they can delay their start time without losing pay for missed ordinary hours.

Practical example: Jane, a full-time banking analyst with a regular hourly rate of $30.00, worked three hours of overtime on Wednesday, two hours on Saturday, and three hours on Sunday. Jane earned $405.00 in overtime pay for that week.

Employees can choose to take time off instead of receiving overtime pay if they and their employer agree in writing. The time off must equal the overtime pay and they need to take it within six months. Employees can request to receive pay for their overtime at any time, which the employer must provide in the next pay period. If employees don’t use the time off within six months, or if they leave the company, the employer pays out the overtime.

Penalty rates

Employees working shifts outside standard daytime hours receive penalty rates. For instance, an early morning shift that starts before 6 AM and an afternoon shift that starts after 12 PM and ends by 8 PM includes an additional 15% on top of the regular hourly rate. A night shift that ends after 8 PM or starts before 6 AM receives an additional 30%. Employees who work permanent night shifts also earn a 30% penalty rate.

Practical example: Shaun, a part-time financial consultant working a night shift from 4 PM to midnight earns an extra 30% on his regular hourly rate of $40.00, receiving $52.00 per hour for the night shift hours from 8 PM to midnight.

Learn more about Banking, Finance, and Insurance Award overtime and penalty rates

Banking, Finance, and Insurance Award leave entitlements and public holidays

The Banking, Finance, and Insurance Award outlines a range of leave entitlements and public holiday provisions to support employees in balancing their professional and personal lives. These provisions align with the NES to ensure fair treatment and consistent benefits.

Annual leave

Full-time employees earn four weeks of paid annual leave per year, while part-time employees accrue leave on a pro-rata basis based on their hours worked. Employees taking annual leave receive their usual pay plus a 17.5% annual leave loading. 

Employers can initiate a temporary shutdown by providing 28 days' notice, requiring employees to use their accrued leave. If employees accumulate more than eight weeks of leave, the award encourages both parties to discuss ways to reduce the balance. If they can't reach an agreement, employers can direct employees to take leave, ensuring at least six weeks of leave remain.

Other types of leave

Employees have access to additional leave types for various personal needs. Full-time employees accrue 10 days of paid personal/carer’s leave annually, with part-time employees receiving this leave proportionally. Compassionate leave allows two days per occasion for family-related emergencies or bereavement. 

Eligible employees can take up to 12 months of unpaid parental leave, with the option to request an additional 12 months. Community service leave covers activities like jury duty or emergency volunteer work, and employees may receive make-up pay for jury duty. The award also provides 10 days of paid family and domestic violence leave annually to support employees facing such situations.

Public holidays

Employees, except casuals, have a right to a paid day off on recognised public holidays, including New Year’s Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Queen’s Birthday, Christmas Day, and Boxing Day. Employers may request employees to work on public holidays if the request is reasonable, but employees have the right to refuse. 

When employees work on a public holiday, they must receive compensation at 250% of their minimum hourly rate, with a minimum engagement period of four hours. Employers and employees can also agree to substitute another day for a public holiday or part-day if needed.

Learn more about Banking, Finance, and Insurance Award leave entitlements

Key considerations for the Banking, Finance, and Insurance Award

The Banking, Finance, and Insurance Award covers a wide range of roles across the industry, making it vital for employers to understand its specific provisions to ensure compliance. Here are some key nuances to keep in mind:

• Coverage considerations: The Banking, Finance, and Insurance Award applies broadly to roles within the industry, including those involved in banking, finance, and insurance industry operations. However, certain positions may not fall under this award, such as those in businesses where financial services aren't the primary function or those covered by specific enterprise agreements.
  
  Why it matters: Misclassifying roles or overlooking coverage exclusions can result in applying the wrong award, leading to compliance breaches and potential fines. Employers must accurately identify which roles fall under this award to avoid legal repercussions and ensure fair treatment of all employees.

• Additional week of annual leave for shiftworkers: Employees classified as shiftworkers who regularly work on Sundays and public holidays have a right to an extra week of annual leave each year.
  
  Why it matters: Employers must correctly identify which employees qualify as shiftworkers and ensure they receive the additional leave entitlement. Failing to do so can lead to non-compliance issues, employee dissatisfaction, and potential legal disputes.

• Overtime rest breaks: Employees who finish overtime and are scheduled to start their next shift in less than 10 hours are allowed to delay their start time to ensure a 10-hour rest period without losing pay for missed ordinary hours. If employers don't provide a 10-hour break, they must continue to pay overtime rates until the employee receives the required rest.
  
  Why it matters: Properly managing overtime schedules to ensure necessary rest breaks is vital. Inadequate rest periods can result in overworked employees, continuous overtime payments, higher labour costs, and legal risks.

• Meal allowance for overtime after 6:00 PM: Employees working overtime beyond 6:00 PM have a right to a meal allowance. All types of employees qualify for this allowance, which varies depending on their classification.
  
  Why it matters: Employers need to monitor overtime closely, especially when it extends past 6:00 PM, to ensure they provide the appropriate meal allowances. Ignoring this requirement can lead to employee grievances and claims for unpaid allowances, impacting workplace morale and compliance.

Simplify Banking, Finance, and Insurance Award compliance with Rippling

Complying with the Banking, Finance, and Insurance Award can be complex because of its specific coverage and pay rate requirements. Rippling’s integrated platform streamlines these processes, helping your business stay compliant while ensuring fair compensation for employees. Key features include:

Comprehensive coverage and compliance tools

Rippling’s platform offers custom-built alerts to help keep you updated and on top of award compliance. With detailed reporting, audit support, and customisable templates, you can ensure that your business remains compliant with all facets of the Banking, Finance, and Insurance Award.

Streamlined time, attendance, and leave management

With features like time and attendance tracking and leave management, Rippling ensures that all processes align with the award’s stipulations, reducing manual work and consequent errors, and enhancing operational efficiency.

Simplified payroll, overtime, and superannuation

Rippling simplifies the complexities of payroll, including overtime and superannuation compliance. The platform automatically adjusts pay, overtime, and penalties according to award requirements, and calculates superannuation contributions accurately.

Real-time insights and integration

Rippling’s seamless integration with existing systems ensures accurate financial management, offering peace of mind and operational flow improvements.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.