Running an on-call roster can keep your business responsive and your customers happy. But it also raises important questions about pay, hours, super and workplace rights.
In Australia, there isn’t a single “on-call law” that applies to everyone. Your obligations will usually come from the Fair Work Act, the relevant Modern Award or enterprise agreement, and your employees’ contracts and policies.
In this guide, we break down what “on-call” really means, when you have to pay, how allowances and call-backs work, and the practical steps to stay compliant while managing costs. We’ll keep it simple and give you a clear checklist so you can set up on-call arrangements the right way.
What Does “On-Call” Mean Under Australian Employment Law?
On-call usually means an employee is not at work but must be contactable and ready to return to work (or log in remotely) if needed. It often involves a rostered period, such as evenings or weekends.
In practice, on-call arrangements can look like:
- Standby/availability: The employee is free to use their time but must be reachable and sober, and able to start work within a specified time.
- Call-back: The employee is actually called in to perform work at short notice. Some Awards call this “recall to duty.”
- Remote support: The employee resolves issues from home (e.g. IT support) without physically returning to the workplace.
- Sleepovers/live-in shifts: The employee sleeps on-site and may be woken to provide assistance (common in care and community services). These have specialised rules in some Awards.
The key difference is whether the employee is merely available or is actually working. Pay and entitlements will usually turn on that distinction, and on what the applicable Award or agreement says.
Do You Have To Pay Employees While They’re On-Call?
It depends on the level of restriction and the terms of the relevant Award or enterprise agreement. Generally:
- Standby/availability time may attract an allowance rather than hourly pay if the employee is free to use their time (with reasonable limits) and not performing work.
- When the employee actually performs work (whether remotely or on site), that time is paid - usually at ordinary or overtime rates depending on when it occurs and how many hours they’ve already worked.
- Minimum engagements or call-back payments can apply, so even a short task might trigger a minimum paid period.
Standby/On-Call Allowances
Many Awards set a specific dollar amount or formula for each on-call period. If an Award applies to your employee, those allowance rates are mandatory minimums.
If your employees are not covered by an Award or agreement, you can set an allowance in the contract - but it must still comply with the National Employment Standards and not undercut minimum entitlements.
Call-Backs And Minimum Engagements
Most Awards require a minimum payment if an employee is recalled to duty. For example, a call-back might trigger a minimum of three hours’ pay at the relevant rate, even if the work itself takes less time. If the call-back occurs late at night or on a weekend, overtime or penalty rates may also apply.
Some Awards distinguish between multiple call-backs in one period and set how travel time is handled. Always check the exact wording that applies in your industry.
Remote Call-Outs And Travel Time
Where employees can resolve issues by phone or laptop, the time spent actually working should be paid. If they have to travel to the workplace, travel time may also be paid depending on the Award or agreement. Many instruments also have “minimums” for remote call-outs (for example, paying a set block of time for each call, to reflect the disruption).
Sleepovers And Live-In Roles
Some sectors (health, disability, community and accommodation services) include special provisions for sleepovers. Typically, an allowance applies to the sleepover period, with separate paid time if the employee is woken and required to work. Rules vary across Awards, so confirm the details that apply to your team.
How Do Awards And Agreements Affect On-Call Pay?
Modern Awards and enterprise agreements do a lot of the heavy lifting with on-call. They usually cover:
- When an on-call or on-call allowance applies and how it’s calculated.
- Minimum call-back periods and how many call-backs can be bundled.
- Penalty rates for nights, weekends and public holidays.
- Travel time, remote work and reimbursement of expenses (e.g. mileage or phone costs).
- Breaks between shifts and fatigue management rules.
Because the rules are instrument-specific, start by identifying the correct Award for each role. If you have an enterprise agreement, follow that document. Where neither applies, you’ll rely on the National Employment Standards and your contract terms - but take care to ensure any flat rates or allowances still meet minimum entitlements overall.
If you use an on-call roster, it’s also important to consider rostering requirements, including reasonable notice of shifts and any applicable consultation obligations.
Some employers try to manage on-call costs with a higher base rate and offset clauses. If you go down that path, make sure any set‑off clause in the employment contract is drafted properly, clearly identifies which entitlements are being set off, and is supported by accurate record-keeping. If it isn’t done correctly, you could still be liable for underpayments.
Superannuation, Overtime And Time Off In Lieu
On-call arrangements can interact with superannuation and overtime in ways that catch employers out.
Is On-Call Pay Ordinary Time Earnings (OTE)?
Superannuation is generally calculated on an employee’s Ordinary Time Earnings (OTE) - earnings for ordinary hours of work. Whether an on-call allowance forms part of OTE depends on the nature of the allowance and when the work occurs. As a rule of thumb, amounts paid for work performed during ordinary hours are more likely to be OTE than payments for overtime or genuine expense reimbursements. Because this is technical, it’s wise to get tailored advice on your specific arrangement.
Overtime And Maximum Hours
If the employee performs work while on-call, those hours may be overtime (depending on when they occur and how they push total weekly hours). Make sure your on-call schedule fits within the maximum weekly hours and any rest breaks required under the Award or agreement, and that you’re applying the correct overtime rules.
Can You Use Time Off In Lieu (TOIL)?
Many instruments allow you and your employee to agree to time off in lieu of paid overtime. TOIL must be documented properly (often in writing each time overtime is worked), taken within specified timeframes, and paid out at overtime rates if not taken. Check the precise TOIL clause in your Award or agreement before relying on it.
Practical Steps To Set Up Compliant On-Call Arrangements
Here’s a straightforward plan to implement on-call in a way that’s fair, safe and legally sound.
1) Identify The Correct Instrument
Confirm the Modern Award (or enterprise agreement) for each role. Note the clauses on on-call allowances, call-backs, penalty rates, remote work, breaks and TOIL.
2) Map The Roster Against Fatigue And Safety
Build your on-call roster to allow reasonable breaks between shifts and reduce fatigue risk. If the employee works overnight due to call-backs, consider their next day’s start time and how you’ll manage double shifts.
3) Update Employment Contracts
Set expectations clearly in the Employment Contract: availability windows, response times, how allowances are paid, minimum call-back periods, use of TOIL and any equipment policy (e.g. phone or laptop use). If you use flat rates or set‑off, get the drafting right and keep detailed time records.
4) Introduce Clear Policies
Policies should cover the on-call roster, escalation steps, safety (including driving after late call-backs), alcohol and impairment, fatigue management, and how to log work performed remotely. These can sit in your Staff Handbook and be explained during onboarding and refreshers.
5) Record-Keeping And Payroll Setup
Use a system that captures on-call periods, start/finish times for call-outs, travel time (if applicable), and approvals for TOIL. Configure payroll items for the relevant allowance codes, minimum engagements and penalty rates so you’re paying correctly every time.
6) Privacy And Devices
If you provide phones, laptops or tracking tools to manage call-outs, make sure staff understand how their data is collected and used. An Employee Privacy Handbook can set expectations and help you meet privacy obligations.
7) Train Supervisors
Managers should know how to apply the Award rules, approve overtime or TOIL, handle fatigue risks, and respond to safety issues. Short refresher training helps maintain consistency.
8) Get Advice For Complex Setups
If you operate across several Awards, use rotating rosters with varying response times, or pay all-in rates, it’s a good idea to check the structure with an employment lawyer before launch. Small tweaks at the outset can prevent costly remediation later.
Common Pitfalls To Avoid
- Assuming on-call always means unpaid time: Availability may be an allowance, but actual work must be paid - often with penalties or minimums.
- Using a one-size-fits-all allowance: Different Awards set different rates, minimum call-backs and travel rules. Copying another business’ rate can lead to underpayment.
- Ignoring breaks between shifts: Failing to manage fatigue risks can breach safety obligations and Award rules on rest periods.
- Overlooking remote work: Short phone fixes can still be paid work; many instruments specify minimum payments for each remote call-out.
- Poor record-keeping: Without accurate logs of on-call periods and call-out times, you can’t prove compliance or calculate pay correctly.
- Misapplying TOIL: Time off in lieu must follow the exact requirements in the Award or agreement - including record-keeping and time limits.
- Unclear contracts: Vague clauses about availability and response times lead to disputes. Put the essentials in the Employment Contract and back them up with clear policies.
Key Takeaways
- On-call arrangements typically involve an allowance for availability and paid time for any work performed, with minimum call-back periods common under Awards.
- Modern Awards and enterprise agreements set the rules on allowances, penalties, travel time, breaks and TOIL - identify and follow the instrument that applies to each role.
- Superannuation is generally based on OTE; whether on-call payments are OTE depends on how and when they’re earned, so check the details of your setup.
- Build rosters that respect maximum hours and rest breaks, and document everything in your Employment Contract, staff policies and payroll system.
- Use TOIL only where allowed and record it properly; otherwise pay overtime and penalties as required.
- Good records, clear contracts and the right award interpretation are the simplest way to avoid underpayments and disputes.
If you’d like a consultation on setting up compliant on-call arrangements for your team, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
