How to Roster Staff Effectively: A Complete Guide for Australian Employers

Correctly rostering staff is essential for workforce planning, operational efficiency, and meeting employee needs. Effective rostering not only fulfils those needs but also manages labour costs and maintains service standards. However, it is also important to ensure your business is compliant and meeting the rostering requirements outlined in your Award or Enterprise Agreement.

Strategies for Best Practice Rostering

Identify award-specific rostering rules
As a best practice, employers should first review the applicable Modern Award or Enterprise Agreement to confirm the relevant rostering requirements. This includes ordinary hours of work, maximum daily and weekly hours, minimum engagement periods, penalty rates, meal and rest breaks, and any rostered day off (RDO) or time off in lieu provisions. Notice requirements for changes to rosters may also vary depending on the applicable Award or Agreement.

Consult employees
Most Awards require a consultation process for any major workplace change, including changes to rosters. When an employer plans to alter an employee’s regular roster or ordinary work hours, the employer must;

• provide information about the change (for example, what the change will be and when)
• invite employees to give their views about the impact of the change
• consider these views about the impact of the change

Communication of rosters
It is important to ensure the roster is available to all employees, either by displaying it on a notice board or providing access via electronic methods.
Using the General Retail Industry Award 2020 [MA000004] as an example, a roster must include details such as total ordinary hours, designated workdays, and start and finish times.
For the notification and change to rosters, the Security Industry Award 2020 [MA000016] outlines that a full-time or part-time employee’s roster can be changed by giving the employee at least 7 days’ notice. If an employer changes a roster without providing the required notice, the employee must be paid overtime for any hours worked under the new roster that differ from the original roster. You can find specific information on the Fair Work website relating to your industry [Rosters – Fair Work Ombudsman].

Workplace flexibility
Awards provide for flexibility in work arrangements, allowing employers and employees to mutually agree on flexible working conditions. When planning a roster, it is also important to consider employees’ leave entitlements. Employers should ensure that the roster accommodates these leave entitlements and is flexible when emergencies arise.

Workplace Health and Safety
Employers must ensure rosters are designed to effectively manage employee fatigue and reduce risks to workplace health and safety, particularly for shift workers. Under Workplace Health and Safety Laws, rostering must balance operational needs with employees’ health, fatigue management and recovery needs. Employers should ensure that there are adequate breaks between shifts and actively monitor and manage excessive overtime, which can lead to burnout and psychosocial hazards.

Minimum Pay and Award Conditions
A common rostering mistake is underpayment resulting from a failure to appropriately apply modern award requirements and maintain accurate record-keeping. Major corporations have appeared in the media recently for the systematic underpayment of wages. Coles Supermarkets featured recently was recently featured in the Federal Court for widespread underpayments of salaried and award-covered employees. Most of the affected employees were covered under the General Retail Industry Award 2020. The underpayments were caused because Coles paying fixed annual salaries that did not compensate the employees for all award entitlements, such as overtime and penalty rates. The Federal Court confirmed that Award entitlements must be paid and reviewed within each pay period, and accurately recording an employee’s hours worked, including overtime.

Rostering Policies and Systems
Does your business have clear and effective policies in place for managing overtime and rostered days off (RDOs)? Are your payroll systems aligned to operational needs while also ensuring compliance with the Fair Work Act and Australian Taxation Office (ATO) requirements? Implementing the right payroll system for your business can support compliance with rostering and payroll by adhering to modern award and superannuation compliance, as well as managing leave entitlements.

Record Keeping
It is essential for employers to maintain accurate and complete records of rosters, including hours worked and leave taken. These records must accurately reflect the actual rostered hours and ensure employees are paid in accordance with the applicable Award rates. Employers are also required to retain roster records for a minimum of 12 months, as they may be requested by a Fair Work Inspector during an inspection or investigation.

Monitor and review
Regularly review your rostering strategy to ensure it continues to align with your business goals and operational needs. It is equally important to stay informed about updates and decisions issued by the Fair Work Commission, as changes to awards and employment conditions can have a significant impact on your compliance obligations and workforce planning.

Need help getting your rostering right? Call 1300 4 ADVICE or explore our HR advice and support services to ensure your business stays compliant and runs efficiently.