Setting delayed meal break rules, and fallback break start times to your award

Maintaining compliance with laws and regulations is essential for any business. foundU provides an automated pay rules feature that simplifies the process.

In this article, we will discuss how to set up a fallback break setting. This will enable a start time to be applied in payroll when shifts are approved without a specified break start time.

Furthermore, we will explain how to apply delayed meal break rules to positions in your Award. These rules apply when employees work for more than a specified number of hours during a shift without an approved break.

This ensures that your employees are fairly compensated and that you comply with all relevant laws and regulations.

In this article, we will cover:

  • Considerations before you start
  • Fallback break settings in your Award
  • How to apply a rule for a delayed meal break position

  This guide has video content, showing short demonstrations of how break settings interact when using the platform. Please ensure your volume is on to understand the demonstrations fully.

  If you're looking to apply both paid and unpaid breaks when rostering automatically, check out our article on using the Break Scheduler.

Considerations before you start

Before you begin setting up break rules in your platform, it is crucial to carefully review Fair Work for your specific Award's rulings relating to breaks.

This step is important as these break rulings may not be specific to your Award, and it is essential to have a clear understanding of the applicable rules and regulations before implementing any changes to your platform.
 

Other features to assist with managing breaks

In the upcoming sections, we will explain how to add break settings to your Awards. The rules will apply mainly to employees who do not have an approved break within the set time. 

However, your platform provides additional features that can help to manage break times and durations when rostering and approving shifts. Utilising these features may impact when the break pay rules will trigger. 

Additional features include:

  • Break Settings (Time & Attendance defaults)
    • 'Default to rostered break details over clocked break details for shift approvals' setting.
      • When Yes is selected, this setting uses the rostered break start time and duration as the default approved break time and duration for approved shifts.
         
      • When No is selected, the shift's clocked time and duration will be used as the default approved break time and duration for approved shifts.
  • Break Scheduler (Time & Attendance defaults)
    • It is a rostering tool that allows the automatic creation of breaks on rostered shifts. These rules will automatically add break start times and durations to shifts.
  • Editing Approve Shifts
    • Managers can make changes to break times and durations by editing in Approve shifts. 

  Please note: The following sections will explain how break settings are applied when the above-mentioned features are not taken into account.

  The video below has audio narration. Please ensure your volume is turned on to fully understand the demonstration. 

Fallback break setting in award settings

When creating or reviewing an Award on your platform, it is important to carefully review the settings of each Award to make sure they are applied according to your interpretation.

When it comes to breaks, the setting we are discussing determines a fallback start time for a break and is used specifically for when a shift is approved for an unpaid break, but no start time is specified or break clocked. 

This can occur in one of the following circumstances:

  • An employee submitted a shift, but no start time for unpaid breaks was provided
  • An employee has not clocked for an unpaid break, and no break start time has been rostered
  • An admin has edited a shift in Approve Shifts, and no break start time has been added

When a shift is approved without a break start time defined, this setting will automatically apply a break start time directly to the payslips. 

When setting this up, remember to consider when you want breaks to apply, as it can affect other pay rules, such as delayed meal breaks or shift penalties.

The options for this setting are to apply the break:

  • At the start of the shift
  • Four hours after the start of the shift
  • At the end of the shift

  To learn about the other important Award Settings, please refer to our article for more information.

To edit the fallback break setting in an Award:

  1. Navigate to the main menu > Awards & Agreements and select the relevant Award to open the dropdown menu.
  2. Select Settings.
  3. In the Award Settings page, scroll down to the setting 'At what point in the shift should an unpaid break be applied?' and select the appropriate option:
    • 4 hours after start time
    • Shift Start
    • Shift End

        Please note: This setting applies to unpaid breaks. Additionally, when an employee has multiple unpaid breaks, this setting will apply them sequentially.
      • For example, if the first break is applied from 12 to 12:30 pm, and then the second will be 12:30 to 1 pm. 
  4. To save, select Save from the taskbar. 

  Hot tip: Once saved, you may want to reprocess any relevant draft payslips to ensure the updates pull through.
 

SCENARIO

We will use this example to demonstrate how the Award setting determines when to apply a break to a shift.

Ila is an employee of Caffeine Express:

  • She has a shift from 12 pm - 8 pm and did not clock in for her unpaid break.
  • Her shift was approved with a 30-minute unpaid break. However, a break start time was not specified. 

In the relevant Award, the fallback break start time is set to be four hours after the start of the shift. 

For Ila, this means her break start time will be applied at 4 pm, as this is four hours after the start of her shift.  

  Hot tip: The Award test feature can be used to confirm when a break has been applied to a shift in payroll, as shown below for Ila's example.

Applying a delayed meal break to a position

When setting up positions in an Award, one of the important automations for breaks is to apply rulings for delayed meal breaks.

This setting pays employees a different rate when they have not taken a break within a specific threshold. The increased rate will apply until the employee has a break, finishes their shift, or triggers overtime.

This pay rule can be referred to as a few different terms depending on your business or industry, these can include: 

  • Meal break penalty
  • Unpaid break penalty
  • Break breach
  • Breach penalty
     

Considerations

When setting up a delayed meal break pay rule in your Award, please consult your Fair Work Award to make sure that the pay rules you are setting up are in your interpretation of the Award.  

Some key items you should check, from Fair Work, before updating your pay rules include:

  • Confirming whether the rate is Ordinary or Overtime for your Award
  • Determining if casual loading applies during a delayed meal break
  • Ascertain if shift penalties apply during a delayed meal break
  • Review your rate labels in your platform and check that it has been added to your Award

  For further reading on rate labels, please refer to our article on Building an Award or Agreement, here.
 

Setting up delayed meal break pay rules

After you’ve confirmed your break penalty pay rules, the next thing to do is update any related positions. We suggest updating one position first, then applying the pay rules to save you some time. 

To set a delayed meal break to a position:

  1. Navigate to the main menu > Awards & Agreements and select the relevant Award to open the dropdown menu.
  2. Select Positions & Pay Rules.
  3. Select Edit on the relevant position.
  4. On the left-hand side, navigate to the Unpaid breaks section and apply the following:
    • Occurs within - This sets the maximum hours before the delayed break will trigger.
    • Otherwise pay - Sets the pay rate for the delayed break.
    • Pay label (optional) - Applies a custom label to payslips for delayed meal break hours. Can be useful when the same rate is used for multiple award rules.
  5. Repeat for Saturday, Sunday, and Public Holidays (if applicable).
  6. Once updated, select Save. You will be navigated back to the Positions & pay rules page. 
  7. To apply the delayed meal break pay rules to other positions in your Award, select Apply. Then choose any relevant positions and Save to update

 

SCENARIO

We will use the following example to demonstrate how delayed meal break settings can trigger.

Ila is an employee of Caffeine Express:

  • She has a shift from 12 pm to 8 pm.
  • Her manager approved her break, which started at 6:30 pm.      

In the relevant Award, the delayed meal break is triggered after 5 hours without a break. Once triggered, employees receive a higher Delayed Meal Break rate.

Ila will receive the higher Delayed Meal Break rate from 5 pm - 6:30 pm., because she did not take a break before 5 pm. Instead, her break started at 6:30 pm, which ended the Delayed Meal Break rate. 

  Hot tip: The Award test feature can be used to confirm when a break has been applied to a shift in payroll, as shown below for Ila's example.

  Please note: During delayed meal breaks, the employee's regular rate is replaced with a higher rate for that period. Using Ila's example, her Ordinary Rate was replaced with a Delayed Meal Break rate.