On-Call Shifts and Fair Work Requirements

Running a small business often means juggling customer demand, unexpected staff shortages, and the reality that some roles just can’t be scheduled neatly from 9 to 5.

If your business relies on staff being available “just in case” (for example, for after-hours callouts, overnight support, emergency maintenance, or last-minute cover), you’ve probably come across the tricky question of on-call work.

This is where many employers get stuck: When does on-call time count as work? Do we have to pay an allowance? What if the employee is at home? What if we call them in and they don’t come?

In this guide, we’ll break down how on-call obligations generally work under Fair Work in Australia, what to check in your Modern Award or enterprise agreement, and the practical steps you can take to stay compliant while still running an efficient roster.

What Counts As “On-Call” Work Under Fair Work In Australia?

“On-call” usually means an employee isn’t actively working, but they’re required to be available to perform work if needed.

In practice, on-call arrangements can look very different depending on your industry:

Standby/on-call at home (employee is at home but must answer calls and potentially attend work).
On-call on-site (employee remains at the workplace and is waiting for work).
On-call with restrictions (employee can move around, but must be sober, within a certain distance, able to respond within a set timeframe, etc.).
After-hours contact only (employee is not required to attend the workplace but may be expected to take calls or do remote tasks).

For Fair Work purposes, the legal risk is usually not the label you use (e.g. “on-call”, “standby”, “available”), but the reality of the arrangement:

How much control you have over the employee’s time
How restricted the employee is while on-call
Whether the employee is actually performing work (calls, emails, remote tasks, or attending site)

As a general rule, if an employee is actively doing tasks (even remotely), that time is much more likely to count as working time that must be paid at the applicable rate. Where the employee is waiting (rather than working), whether the waiting time itself is payable is usually more fact-specific and often depends on the relevant Award/agreement wording and how restrictive the arrangement is in practice.

On-Call vs Overtime vs “Contactable” Time

It’s common for small business owners to lump these together, but they can have different pay and compliance consequences:

On-call/standby often attracts an allowance (depending on the applicable instrument) because the employee’s personal time is restricted.
Overtime is usually triggered when the employee actually performs work beyond their ordinary hours.
Being contactable (with no real restrictions) may not attract an allowance, but once the employee performs work, payment obligations can arise.

This is exactly why reviewing the relevant Award or agreement is so important before you implement (or continue) an on-call roster.

Do You Have To Pay Employees For Being On-Call?

Often, yes - but the “how” depends on what applies to your workplace.

In Australia, an employee’s minimum pay and conditions usually come from one (or more) of the following:

The Fair Work Act and National Employment Standards (NES)
A Modern Award
An enterprise agreement
The employee’s individual employment contract (as long as it doesn’t undercut minimums)

Many Modern Awards include specific clauses about:

Whether an on-call or standby allowance is payable
Minimum payments for being recalled to work
Overtime rates that apply to call-outs
Rest breaks or minimum break between shifts after call-outs

If your employees are Award-covered, you generally can’t “contract out” of those Award entitlements.

If you’re unsure whether your staff are Award-covered, or which Award applies, it’s worth getting advice early - on-call arrangements can become expensive (and risky) if they’re set up incorrectly.

When On-Call Time May Count As Paid Working Time

Even if you pay an allowance for being on-call, there are situations where some or all of an on-call period may still need to be treated as time worked. This is a fact-specific question and can depend on the terms of the relevant Award/agreement (and, in some cases, how courts or the Fair Work Commission have approached similar arrangements).

Factors that can increase the likelihood that on-call time is treated as working time include:

Very short response times (e.g. “must attend within 10 minutes”)
Requirement to stay at a specific location or within a very small radius
Multiple interruptions during the on-call period
Requirement to remain in uniform or ready to work immediately
Significant disciplinary consequences for missing a call-out

Not every on-call arrangement means the full waiting period must be paid as work time. However, the more the arrangement restricts an employee’s ability to use the time for themselves, the more important it is to check your Award/agreement settings (and make sure your allowance and payment approach are compliant and properly documented).

What Do Modern Awards And Agreements Usually Say About On-Call?

There isn’t a single “on-call rule” that applies to every business under Fair Work. The details often sit inside the relevant Modern Award or enterprise agreement.

That said, many instruments deal with on-call in a few common ways.

1) On-Call Or Standby Allowances

Many Awards require you to pay an allowance for each period an employee is on-call (for example, a flat rate per day or per shift).

This allowance is separate from wages for time actually worked if the employee is called in or performs remote tasks.

2) Recall/Call-Out Payments

A common concept is a minimum engagement or minimum payment when an employee is recalled to work outside ordinary hours.

For example, an Award may require you to pay a minimum number of hours at an overtime rate even if the job only takes 20 minutes.

This is designed to compensate employees for the disruption and the fact they must return to work at short notice.

3) Overtime Rates And Penalties

When an employee performs work while on-call (attending site, taking calls, logging into systems), overtime and/or penalty rates may apply depending on:

Whether it’s outside ordinary hours
Whether it’s on a weekend or public holiday
The employee’s classification and Award

This is one reason your rostering and payroll processes should clearly record:

When an on-call period starts and ends
When a call-out starts and ends
What tasks were performed remotely vs on-site

4) Rest Breaks And Time Between Shifts

Another common compliance risk is failing to provide a proper break after a call-out.

If an employee is called out overnight and then expected to work a normal day shift a few hours later, you may breach Award provisions about minimum breaks (and you may trigger additional payments).

If your workplace involves frequent after-hours call-outs, you should consider building a policy that deals with:

handover to a different on-call person where fatigue is likely
minimum rest periods after call-outs
escalation processes for emergencies

If you’re updating your employment documentation to reflect on-call expectations, a properly drafted Employment Contract can help set clear boundaries (while still meeting Award minimums).

How To Set Up An On-Call System That’s Practical (And Compliant)

On-call rosters are often necessary, but the legal and operational problems usually come from unclear rules.

If you want an on-call arrangement that works for your business and is easier to administer, these are the foundations we recommend.

1) Identify The Correct Industrial Instrument First

Before you set allowances or expectations, confirm whether the employee is covered by:

a Modern Award (and which one)
an enterprise agreement
no Award (award-free), where the contract and NES do most of the heavy lifting

Getting this wrong can lead to underpayment issues that are costly to fix later.

2) Put The On-Call Rules In Writing

Your on-call arrangement should be documented clearly, including:

how the on-call roster is allocated (rotating, voluntary, by role)
expected response time
what counts as a “call-out” vs a quick phone call
how employees record time worked during on-call
payment method (allowance + overtime/call-out rates)
fatigue management and rest breaks

Often this is done through a combination of the employment contract plus a workplace policy.

If your on-call approach requires regular shift changes, it’s also worth checking your broader rostering processes against Fair Work expectations on shift change notice.

3) Train Managers Not To Create “Off-The-Clock” Work

A common small business trap is informal after-hours work that isn’t treated as time worked, for example:

“Just take a quick call”
“Can you reply to this customer tonight?”
“Log in and check if the system is back up”

If the employee is performing tasks, it may be working time - and if it happens outside ordinary hours, overtime/penalty rates may apply depending on the Award or agreement.

The best approach is to set a clear rule: if a manager asks for a task during on-call, it must be recorded and paid appropriately.

4) Make Sure You Can Actually Measure The Time Worked

You don’t need a perfect system, but you do need a consistent one.

Common approaches include:

a timesheet entry for each call-out
a shared log (start time, end time, brief description)
phone system reports (paired with employee confirmation)
job management software entries

This not only helps payroll accuracy - it can be critical evidence if there’s ever a dispute or Fair Work investigation.

Common Compliance Risks For Small Businesses With On-Call Shifts

On-call problems usually don’t happen because an employer is trying to do the wrong thing. They happen because on-call sits in the grey area between “personal time” and “work time”.

Here are some of the most common risk areas we see.

Underpaying Allowances Or Missing Minimum Call-Out Payments

If your employees are Award-covered, missing an on-call allowance or a minimum call-out payment can quickly become an underpayment issue - especially if the roster runs every week.

It’s also easy to miss overtime and penalty rates if managers treat call-outs as “just part of the job”.

Unclear Expectations For Casual Employees

Casual employees can be useful for flexibility, but you still need to manage rostering and expectations carefully.

Depending on the Award and your arrangements, a casual employee may be able to refuse shifts - and last-minute changes can also create compliance and employee relations issues.

It’s worth having a clear approach to shift cancellation where on-call coverage is involved.

Fatigue And Safety Issues

On-call work can cause fatigue, especially where call-outs happen overnight or in high-pressure situations.

Work health and safety obligations still apply, and fatigue can increase the likelihood of incidents (and workers compensation claims).

A fatigue management approach doesn’t need to be complex, but it should be intentional - especially if your employees drive, operate machinery, or perform safety-critical work.

Confusion Over What Is “Reasonable Additional Hours”

For full-time staff, it can be tempting to assume on-call is covered by a salary.

But whether extra hours are reasonable depends on the circumstances, including the employee’s role, the level of compensation, how frequently call-outs occur, and health and safety considerations.

If you pay above award wages (or a higher salary), you still need to ensure the arrangement doesn’t undercut minimum entitlements overall.

Not Having The Right Contract Terms In Place

If on-call is a core part of the role, it should be reflected in the written terms of employment.

Without clear contract wording, you’re more exposed to disputes about whether on-call is required, how often it can occur, and what the employee should be paid.

In many cases, a tailored Employment Contract (supported by policies) makes the arrangement far easier to manage.

Key Takeaways

There isn’t one universal rule for on-call arrangements under Fair Work in Australia - your employee’s Modern Award, enterprise agreement, and contract terms matter.
Many Awards require an on-call or standby allowance, plus separate payments (often overtime and/or minimum engagement) when work is actually performed.
Whether on-call waiting time is payable is usually highly dependent on the specific Award/agreement terms and how restrictive the arrangement is in practice.
Clear written rules (contracts + policies) and accurate time recording are essential to keeping your on-call system compliant and manageable.
Common risk areas include missed allowances, missed call-out minimums, fatigue issues, and informal “off-the-clock” work after hours.

If you’d like help setting up an on-call arrangement, reviewing your Award obligations, or updating your employment documents, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

On-Call Shifts And Fair Work Requirements In Australia