Two working arrangements that are easy to leave unpaid are dealt with expressly in the Employment Act (Chapter 373): being required to be available, and being called in without notice.
Section 48 — the two definitions
“Stand-by duty” means periods when an employee not actually working is required to be available for duty.
“Call-out duty” means overtime which an employee is required to perform without prior notice being given during (a) normal working hours; or (b) stand-by duty.
Note the breadth of the stand-by definition. It does not require the employee to be at the workplace, or to be contacted, or to do anything. Being required to be available is enough. A roster that says “on call this weekend” is stand-by duty and attracts payment even if the phone never rings.
Call-out is a species of overtime, defined by the absence of prior notice. It can arise out of stand-by, or out of ordinary working hours.
Section 53 — what stand-by pays
(a) an amount not less than 10% of his hourly rate calculated under section 52(4); or
(b) K0.30 for each unbroken period of stand-by duty.
| Hourly rate (s 52(4)) | 10% per hour | A 16-hour overnight stand-by |
|---|---|---|
| K10.00 | K1.00 | K16.00 |
| K15.00 | K1.50 | K24.00 |
| K25.00 | K2.50 | K40.00 |
Paragraph (b) is expressed per unbroken period rather than per hour, and at present wage levels the 10% limb will almost always be the greater. Calculate the 10% figure and claim that. The hourly rate is derived under section 52(4): annual wage ÷ 2,288, weekly wage ÷ 44, or daily wage ÷ 8.
Section 53(3) says when stand-by ceases: when the employee reports for duty as required, or is notified by the employer that he is no longer on stand-by. Until one of those happens, the hours keep accruing. An employer that forgets to stand a worker down is still paying.
Section 54 — what call-out pays
(1) An employee on call-out duty shall be paid overtime in accordance with section 52 for that duty.
(2) Where the period of overtime worked in consequence of a call-out is:
(a) less than three hours — overtime for a period of three hours shall be paid; or
(b) three hours or more — a call-out payment of K0.30 shall be paid in addition to the overtime.
The three-hour minimum is the substantive protection. A worker called in at 11 p.m. for forty minutes is paid three hours of overtime at the applicable section 52 rate — 1.5× on an ordinary day, 2× on a Sunday.
| Call-out | Paid as | Amount |
|---|---|---|
| 40 minutes, Tuesday night | 3 hours at 1.5× | 3 × K22.50 = K67.50 |
| 2 hours, Sunday | 3 hours at 2× | 3 × K30.00 = K90.00 |
| 5 hours, Wednesday night | 5 hours at 1.5× + K0.30 | K112.50 + K0.30 = K112.80 |
Stand-by and call-out together
The definitions contemplate a call-out arising during stand-by duty. Where that happens the employee is being paid for two different things: the stand-by hours under section 53, and the overtime for the hours actually worked under sections 52 and 54.
Section 53(3)(a) provides that stand-by ceases when the employee reports for duty — so a careful calculation runs stand-by up to the moment of reporting, then overtime (subject to the three-hour minimum) for the work, and stand-by again afterwards if the employee remains on the roster.
Section 49(5) — no stand-by during a rest period
An employee shall not be liable to stand-by duty during any rest period prescribed under section 49 or under sections 52(5) and 56.
That covers the meal and rest periods, the weekly 24-hour rest period, time off given in lieu of overtime under section 52(5), and the equivalent time off after working Good Friday or Christmas Day under section 56. A roster that places a worker on call through their weekly rest day does not comply.
Payment, records and pay statements
- Section 55 — stand-by and call-out are paid on the same timetable as overtime: not later than seven days after the next normal pay day, or on termination, whichever comes first; calculated to the nearest quarter hour and the nearest toea.
- Section 57 — the employer must keep records and make returns of overtime, stand-by and call-out as prescribed.
- Section 82(b) — the pay statement must show the amount earned for overtime, call-out and stand-by duty.
- Keep the roster. Photograph the on-call list each period — it is the proof of the stand-by requirement.
- Log each call-out — time of the call, time of arrival, time of finish.
- Note when you are stood down, since section 53(3) makes that the end point.
- Calculate the 10% figure from your own hourly rate and compare it with the payslip.
- Check the three-hour minimum on every short call-out.
- Check that no stand-by falls in a rest period under section 49(5).
Sources
- Employment Act (Chapter 373) — ss 48, 49, 52–57, 82; Part IV Division 2
- Industrial Relations Act — PacLII 1986 Revised Edition
- Sarathy v PNG Power Ltd [2021] PGNC 681; N10316
Before relying on anything here, read the current text of the Employment Act (Chapter 373) and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.