Towards a standard model for part-time employment: What you need to know
Towards a standard model for part-time employment: What you need to know
The Fair Work Commission (FWC) has commenced a new matter under s.157(3)(a) of the Fair Work Act 2009 to review how part-time employment is regulated across 11 modern awards. The goal is a standard model that could replace today’s patchwork of definitions, minimum engagements, and variation rules. If adopted, employers will likely need to update contracts, rostering practices, payroll rules, and change management processes.
What’s happening?
On 24 July 2025, a Full Bench of the FWC (constituted as an Expert Panel) formally commenced proceedings to review part time provisions across a defined group of awards. The 11 awards include Clerks—Private Sector, Fast Food, General Retail, Hospitality, Manufacturing, Pharmacy, Building & Construction (Onsite), Registered & Licensed Clubs, SCHADS, Restaurant, and Children’s Services.
What might a ‘standard model’ change?
Today’s award rules vary markedly. For example, minimum engagement spans from 2 hours (e.g. Children’s Services) to 3 to 4 hours elsewhere. Variation rules differ on notice periods, whether employers can unilaterally alter patterns, and overtime triggers can hinge on exceeding the agreed pattern rather than 38 hours alone. A standard model could align these levers across awards.
What’s next?
- Submissions closed (initial round): The Full Bench invited written submissions addressing the background paper and the provisional scope of issues (definitions, establishing/altering agreed hours, minimum daily/weekly hours, additional hours and overtime, and any further aspects that should be considered). This first lodgement window is now closed.
- Directions hearing: A directions hearing was held 11:00 am (AEST) Wednesday, 3 September 2025 in Sydney. Its purpose is to confirm the timetable for the case, which may include reply submissions, evidence windows, and any further hearings or conferences.
- Decision expected: The Commission has not set a decision date. The timetable will be settled at the 3 September 2025 directions hearing, after which the Full Bench typically publishes further directions and, in many reviews, may circulate exposure drafts before issuing any final award variations. No updates have been published yet.
BDO recommendation
- Map your exposure: Identify which of the 11 awards cover your part-time workforce and where current minimum engagements, variation rules, and overtime triggers create complexity. Use the side-by-side grid you collated during the 2024 review to pinpoint the biggest deltas.
- Tighten your agreed hours process: Ensure every part-time employee has a current, signed schedule of hours and that variations are captured in writing, with clear system flags where actuals exceed the agreed pattern.
- Stress test payroll logic: Validate that your payroll and rostering systems can distinguish additional hours vs overtime under a ‘pattern based’ trigger and produce an audit trail for authorisations - these are likely focal points of any model.
- Plan the change: Prepare a light change management plan (policy updates, manager training, employee communications) so you can move quickly once a decision is handed down.
- Stay informed: Subscribe to news and articles for timely updated on payroll workplace changes - plus practical explainers, tools and webinar invitations from our specialists.
How BDO can help
Subscribe to BDO news and articles: Australia’s payroll and industrial relations settings move fast. Rather than checking multiple sources, you can receive timely BDO updates on legislative and FWC developments direct to your inbox, along with practical explainers, implementation checklists and invitations to our employer‑focused webinars. Subscribe to BDO Insights and choose the topics most relevant to you so you’re alerted as soon as changes emerge and what they mean for your obligations.
Tailored support when change is confirmed: When a decision is handed down, or if you need help assessing potential impact in the interim, contact our payroll advisory team for help with end-to-end advice from risk reviews to remediation pathways and system configuration.
Note: BDO is not a law firm and does not provide legal advice. All matters of legal interpretation, and all matters requiring legal advice, will be advised and signed off by your legal advisors. We will complete our work based on any legal advice provided.
