Should Payroll Staff Be Considered 'Shiftworkers' Under Australian Law? A 2026 Compliance Wake-Up Call for Fair & Innovative Business.

6 days ago
4 min read

With Pay Day Super launching 1 July 2026 and EOFY deadlines looming, Employers and their Payroll Workers are under intense pressure right now. Many are handling after-hours processing, weekend catch-ups or Public Holiday deadlines to keep your Business Compliant.

This raises a timely question: Should Payroll Workers be classified as 'Shiftworkers' under Australian Legislation?

The answer isn’t quite as easy as it may seem — and getting it WRONG can create huge compliance risks, overall Financial Loss to Businesses, underpayment claims or missed entitlements. So we thought we'd take some time to break it down with reference to the Fair Work Act, modern Awards and Real-World innovation in Payroll Compliance in Australia today.

What Does “Shiftworker” ACTUALLY Mean in Australia?

Under the National Employment Standards (NES) in the Fair Work Act 2009, ALL Employees — including Award/Agreement-Free Employees — are covered by the NES. The definition of a 'Shiftworker' (for the extra week of Annual Leave) depends on whether the Employee is covered by a modern Award or Enterprise Agreement (EA).

For Award or Enterprise Agreement-covered Employees, a Shiftworker (for the extra week of Annual Leave) is generally defined as a seven(7)-day Shiftworker who is regularly 'rostered' to work on Sundays and Public Holidays. [1]

For Award/Agreement-Free Employees, section 87(3) of the Fair Work Act 2009 defines a 'Shiftworker' as an Employee who:

Is employed in an Enterprise in which shifts are continuously 'rostered' 24 hours a day for seven (7) days a week [i.e. you work 3 Shift Type Variance(s) eg. Day, Afternoon and Night;]; AND
Is regularly 'rostered' AND 'required' to work those shifts; AND
Regularly works on Sundays and Public Holidays. [2]

RUNPAY® TIP: Public Holidays in Australia frequently fall on a Monday. This can play a significant role in whether an Employee meets the 'regularly works on Sundays and Public Holidays' test.

Many modern Awards and Enterprise Agreements of today provide their own Definitions. For example, the Manufacturing Award defines a 'Shiftworker' for extra leave as 'a 7 day Shiftworker who is regularly rostered to work on Sundays and Public Holidays'. [3]

Important Distinction:

'Shiftworker' for Penalty Rates (i.e. extra pay for unsocial hours) is often broader and defined differently in modern Awards. However, for the one (1) extra week of Annual Leave (i.e. 5 weeks instead of 4), the qualifying bar is set significantly higher. [4]

Can or DO Payroll Workers Qualify?

Traditional Payroll roles are office-based with typically known standard Monday–Friday hours by most Workers and Employers. However, many modern Payroll teams — especially those Employers managing remote working and multi-State rosters, new rules like Pay Day Super deadlines OR the usual end-of-month processing — having to work constant irregular hours, weekends or Public Holidays (and for some, always on-call) is incredibly hard and very stressful to Business Owners and the Workers they chose to employ for their Business purpose and financial success.

A KEY TEST (Based on the current definition): Does the individual Employee get regularly 'rostered' across seven (7) days AND work Sundays/Public Holidays as part of a continuous shift operation?

Purely Administrative Payroll Staff rarely meet the 7-day 'roster' + Sunday/Public Holiday threshold.
Teams handling Live Payroll for 24/7 operations (e.g. aged care, manufacturing, logistics) may qualify provided their patterns match the criteria.

A Public Holiday Nuance: Employees required to work on Public Holidays often receive Penalty Loadings (e.g. 150–250% depending on the Award). This is separate from (and sometimes less generous than) the standard 4-week Annual Leave entitlement. Shiftworkers qualifying for five (5) weeks get that extra week in addition to any Public Holiday penalties they have earnt by being ALWAYS available to work on a Public Holiday even when Stood Down by the Business on the Public Holiday. [5]

Landmark Case: O’Neill v Roy Hill Holdings Pty Ltd [2015] FWC 2461

A highly relevant Australian decision is O’Neill v Roy Hill Holdings Pty Ltd. The Fair Work Commission ruled that, For Award/Agreement-Free Employees, where an Employee 'regularly works on Sundays and Public Holidays' means working at least 34 Sundays and 6 Public Holidays in a year (pro-rated for part-year or part-time). [6]

This case (in the Mining sector) set a practical benchmark many Employers and modern Awards still reference. It emphasises that the focus is on the Employee’s actual roster pattern, NOT just the overall Business Operations (i.e. the 24/7 Business operation requirement to qualify).

While NOT a Payroll-Specific Case, it directly informs 'HOW' Fair Work OR any other individual can interpret 'Shiftworker' status — critical for any Business or Business support function working non-standard hours.

Innovation, Compliance & Constant Training: The 'Real' Payroll Edge

Most well-educated people today understand Payroll is not 'just processing pay' anymore. It’s the strategic compliance function in the Business ensuring every Employee — regardless of role, industry or contract type — receives fair, reasonable AND true Lawful treatment.

Why Ongoing Training Matters:

Modern Awards change regularly (wage increases, Penalty adjustments, classification updates).
Pay Day Super adds new real-time obligations from July 2026.
Wage theft is now a criminal offence — reckless underpayments can mean serious penalties.
Misclassifying staff (Shiftworker status, Award coverage, Casual vs Permanent) creates systemic risk.

Innovative Payroll Staff invest in continuous upskilling so they can:

Accurately classify entitlements for all Employees.
Configure Business HR/Payroll & Finance technology appropriately with other integrated Systems.
Modify Business Processes and create automated workflows for seamless Whole-Of- Business-Integration (WOBI).
Advise Employers on Roster design that balances Business cost, fairness and compliance.
Leverage insights and technology through RUNPAY® to handle complex Payroll/HR and Workforce Management patterns without stress.

This proactive approach protects the Employer and supports fair outcomes for all Workers.

Practical Checklist for Business Owners, Executives & Payroll Leaders

Review your team’s actual rosters against Award definitions.
Document patterns of Sunday/Public Holiday work.
Check applicable modern Award or Enterprise Agreement for 'Shiftworker' Clauses.
Train Payroll Staff on NES entitlements AND recent case Law.
Test Payroll system readiness for Pay Day Super + irregular hours.
Consider Executive Advisory if your setup spans multiple Awards or States.

Are you ready to strengthen your Payroll Compliance Game? Access the RUNPAY® Compare Marketplace and evaluate 240+ Solutions BUILT for complex shift and compliance needs → Book your 5-day access for $101 OR get targeted Executive Advisory support: RUNPAY® Advice.