Fair Work Regulations On Paid Training: Employer’s Essential Guide

Investing in employee training isn’t just a nice-to-have - it’s central to running a safe, compliant and high-performing workplace. From WHS inductions and new systems training to refreshers on policies and skills, most Australian employers will ask staff to complete training at some point.

That’s where the practical questions arise: do you have to pay employees for training? What if it’s after hours? Do casuals and new starters get paid? And how do superannuation and leave accruals work when the hours are outside the roster?

This guide breaks down how the Fair Work framework - the Fair Work Act 2009, Fair Work Regulations 2009 and any applicable Modern Award or enterprise agreement - applies to paid training. We’ll cover when training counts as time worked, how to handle overtime, allowances and travel, and the documentation you should have in place so your approach is clear, consistent and legally sound.

By the end, you’ll know how to meet your obligations with confidence and build training into your operations without headaches.

When Is Training “Paid Work” Under Fair Work?

The general rule under Australia’s workplace laws is straightforward: if you require an employee to attend training that is connected to their job, the time is “time worked” and must be paid in line with the relevant minimum entitlements.

Required vs optional

• Employer-required training: If attendance is compulsory (for example, WHS inductions, mandatory compliance modules, product training, new system rollouts), pay the time at the correct rate set by the applicable Modern Award, enterprise agreement or contract.
• Optional development: If a session is genuinely voluntary, not required to perform the job and there’s no detriment for not attending, payment is generally not required. Be explicit in writing that it’s optional and avoid any implication that attendance is expected.

During rostered hours vs outside hours

• During ordinary hours: Pay the employee’s ordinary hourly rate for the hours spent in training during their rostered span of hours.
• Outside ordinary hours: If you direct an employee to attend training outside their agreed or ordinary hours, overtime or penalty rates may apply under the relevant instrument. This includes night, weekend or public holiday training where penalties would normally apply. For more on rate settings and thresholds, see Australian overtime laws.

In practice, if you run a Saturday morning session for a retail team covered by the General Retail Industry Award and require attendance, those hours are paid and may also attract the Award’s Saturday penalty rates.

Who Must Be Paid For Training (And Who Doesn’t)?

Full-time and part-time employees

Permanent employees must be paid for required training. Hours count towards their weekly totals and may trigger overtime if they push the employee above their ordinary hours or outside the Award’s span of hours.

Casual employees

Casuals are entitled to be paid for required training, including induction tasks needed before they start on the floor. Pay is at the correct casual rate for their classification (including casual loading), and penalties apply if the training falls at a time that would usually attract them.

Pre-employment trials and onboarding

Unpaid trials are lawful only in limited circumstances and must be a short skills demonstration with no or minimal productive work. If you ask a candidate to complete substantive training or perform productive tasks before their start date, this is work and must be paid at the applicable minimum rate. If you’re unsure where the line sits, it’s safer to pay for any onboarding sessions that go beyond a brief demonstration.

Volunteers

Genuine volunteers are not employees and don’t have an entitlement to pay - including for training. However, if a “volunteer” is rostered, required to complete training, performs productive work and is under your direction, they may actually be an employee at law. In that case, you could be liable for wages, superannuation and entitlements. Keep roles clearly defined and documented to avoid misclassification.

Contractors and freelancers

Independent contractors aren’t covered by employee minimum entitlements, but you should address training time in their agreement. If you require a contractor to attend induction or compliance sessions that sit outside their normal scope, include clear payment terms in your contractor agreement to avoid disputes.

Does Training Time Accrue Leave And Attract Superannuation?

This is where nuance matters. Not all paid hours are treated the same way for leave accrual or superannuation purposes.

Annual leave and personal leave

• Ordinary hours: Paid training completed during ordinary hours is treated the same as other ordinary time - for permanent employees, it contributes to leave accruals.
• Overtime: Paid overtime hours are generally not counted for the purpose of accruing annual or personal/carer’s leave. If training outside ordinary hours is classified (and paid) as overtime, it doesn’t increase leave accruals.

Superannuation

• Ordinary Time Earnings (OTE): Superannuation is payable on OTE, which typically includes paid training that occurs during ordinary hours.
• Overtime payments: Superannuation is generally not payable on overtime amounts that are specifically identified as overtime. Distinguish these in payroll.

Because entitlements depend on how hours are classified, ensure your payroll setup differentiates between ordinary hours and overtime. For an overview of how “ordinary time earnings” works in practice, see ordinary time earnings.

Tip: Super and tax rules can be complex and change over time. It’s a good idea to confirm your approach with your payroll provider or accountant so superannuation and PAYG withholding are processed accurately.

How Awards And Enterprise Agreements Affect Paid Training

Many industries are covered by a Modern Award or enterprise agreement with additional requirements about training, meetings, allowances and notice. Always check the instrument that applies to your workforce.

What an Award or EA might specify

• Whether compulsory training outside ordinary hours attracts overtime or penalty rates
• Minimum call-out periods when training is scheduled on a non-working day
• Meal, travel or fares allowances linked to training days or offsite sessions
• Notice requirements to change rosters or add training
• Recordkeeping obligations for training time

For example, some hospitality and retail instruments provide that compulsory meetings or training outside the normal span of hours must be paid at penalty rates, with minimum engagement times. If you’re unsure of coverage or classification, dedicated award compliance support can help you get settings right from day one.

If you don’t have an Award or EA (for instance, for Award-free managers), you still need to pay at least the National Minimum Wage or the applicable guaranteed rate in the employment contract, and comply with the National Employment Standards (NES).

Practical Pay Scenarios: Getting The Details Right

Training during a rostered shift

Pay ordinary rates for the time spent in training. If the session shortens productive work, you still pay for the rostered hours - the employee remained at your direction.

After-hours training on a weekday

If required, pay overtime or the applicable penalty under the Award/EA. If your workplace uses time off in lieu (TOIL), ensure it’s allowed by the instrument and that you have written agreement in place. Here’s a practical explainer on time in lieu arrangements.

Weekend or public holiday sessions

Required weekend or public holiday training typically attracts the same penalty rates that would apply to ordinary work at those times under the relevant instrument.

Travel time for training

Travel to a different site for a required training session may count as time worked depending on the circumstances and the instrument. Some Awards provide travel and meal allowances, or pay for time spent travelling outside ordinary hours. Check the clauses that apply before scheduling offsite training.

Short online modules at home

If you require employees to complete online modules at home, pay for the time. If this pushes the employee over ordinary hours, overtime or penalties may be triggered. Maintain clear records of the time spent and how it’s classified in payroll.

Set Yourself Up: Documentation And Processes That Make Paid Training Easy

Clear documentation helps you comply with Fair Work rules and avoid misunderstandings. Put the following in place so everyone knows what to expect.

Employment agreements

Ensure your contracts specify pay and classification, clarify that required training is paid, outline when overtime or penalties may apply, and set expectations around recording time. Tailored contracts for different categories of staff - for example an Employment Contract (FT/PT) and an Employment Contract (Casual) - make it easier to reflect the correct entitlements.

Workplace policies

A training and attendance policy can define mandatory vs optional sessions, notice and booking processes, how to record hours, reimbursement rules (meals, travel) and how TOIL is managed where permitted. These policies often sit within a broader workplace policy or staff handbook.

Rostering and notice

When possible, schedule training during ordinary hours to minimise overtime and penalties. If you need to change rosters, comply with any Award/EA notice requirements and keep changes in writing.

Recordkeeping

• Keep accurate records of training dates, duration, attendance and whether hours were ordinary or overtime.
• Itemise training hours appropriately on payslips where relevant (particularly when overtime applies).
• Retain any written agreements for TOIL and travel or meal reimbursement claims.

Align classification and payroll

Training time must be paid at the correct classification and rate. Ensure your payroll system and timesheet process can distinguish ordinary hours, overtime and penalties so superannuation and leave accruals are calculated correctly.

Accounting and super settings

Work with your accountant or payroll provider to confirm that your superannuation settings align with OTE rules and that overtime amounts are handled correctly for super and leave accruals.

Common Pitfalls (And How To Avoid Them)

Treating required training as “voluntary”

If attendance is expected or there’s a detriment for not attending, the session is not voluntary. Classify and pay it properly to avoid backpay or penalties.

Not checking the applicable Award/EA

Assuming standard rules can lead to underpayments. Confirm the instrument that applies to each role and follow the specific clauses for training, meetings, allowances and overtime. If you need support interpreting coverage and rates, consider engaging help with Modern Awards.

Misclassifying overtime

Calling it “training” doesn’t change how hours must be paid. If a required session is outside the ordinary span of hours, overtime or penalties likely apply. Pay the difference and record it correctly.

Gaps in contracts and policies

Vague contracts and missing policies make disputes more likely. Clear documents help managers and employees understand the rules and reduces admin when training is scheduled. If you deliver a lot of training, a quick policy refresh can save time later.

Forgetting tax and super nuances

Paying for training still requires correct PAYG withholding and super on OTE. Overtime is generally excluded from super and doesn’t accrue leave. If in doubt, run specific scenarios past your accountant or payroll provider.

Legal Touchpoints Connected To Training

Training doesn’t sit in a vacuum. It touches a range of workplace obligations and systems in your business. Keep the following front of mind:

• Work health and safety (WHS): Inductions and refresher training support your duty to provide a safe workplace. If the training is required, pay for it and keep attendance records.
• Fair Work compliance: If training requires extra hours, ensure overtime, penalties, allowances, breaks and roster change rules are followed - the same as you would for ordinary work. If you’re building a broader training program for your team, see the related guide on legal requirements for training employees.
• Scheduling and breaks: Consider how training affects shift lengths and rest breaks, particularly if it bookends a long shift. You may need to plan around break rules or split sessions.
• Remote and online learning: Required online modules at home are still paid. Provide clear instructions for logging time and claiming any approved expenses.
• Documentation: Keep copies of materials, attendance and any assessments. This helps demonstrate compliance if an issue arises, and supports consistent onboarding.

Key Takeaways

• If you require an employee to attend training related to their role, treat that time as “time worked” and pay at the correct rate; overtime or penalty rates may apply when sessions fall outside ordinary hours.
• Casuals must be paid for required training at their casual rate; permanent staff are also paid, with overtime if triggered by timing or hours.
• Paid training during ordinary hours generally attracts superannuation as OTE and counts toward leave accruals; overtime payments usually do not attract super and do not accrue leave.
• Modern Awards and enterprise agreements often set specific rules for compulsory meetings, minimum engagements, allowances and notice - always check the instrument that applies.
• Make compliance easy with clear employment contracts, a training policy, accurate time records, and payroll settings that distinguish ordinary hours and overtime. Where appropriate, consider TOIL in line with your instrument and written agreements.
• Unpaid trials are lawful only in narrow situations; if training is substantive or productive, pay it. Be careful not to misclassify volunteers or optional sessions.

If you’d like a consultation on managing paid training under Fair Work - or need tailored Employment Contracts, workplace policies or award compliance advice - you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.