Court Ruling Reinforces Employee Rights on Working Hours

A recent court ruling has reinforced the importance of adhering to Fair Work requirements regarding employee hours. The Federal Circuit and Family Court of Australia found that requiring an employee to work a 40-hour week without overtime compensation was unreasonable, setting a critical precedent for employers.

Case Overview: Chin v Visual Thing Australia Pty Ltd [2024]

In this case, Ms. Chin, a creative retouching specialist, worked for Visual Thing Australia from 2014 to 2022 under an annual salary of $75,000 plus superannuation. However, her employer required her to work 40 hours per week without any additional payment for overtime.

Under section 62 of the Fair Work Act 2009 (Cth), an employer cannot require a full-time employee to work more than 38 hours per week unless the additional hours are reasonable. Employees also have the right to refuse unreasonable additional hours.

Key Court Findings

The court determined that while industry norms and tight deadlines were factors, they did not justify requiring Ms. Chin to consistently work beyond 38 hours per week. The ruling was based on the following:

✅ Ms. Chin did not hold a senior or managerial role that required extended hours.
✅ Although two extra hours per week may not be unreasonable in isolation, the regularity and duration over eight years made it excessive.
✅ Ms. Chin was covered by an industry award entitling her to overtime pay, which she never received.
✅ The employer failed to prove that requiring these additional hours was reasonable.

Implications for Employers

This case serves as an important reminder for employers to review their working hour policies and overtime practices. Key takeaways include:

🔹 Industry norms and business needs alone do not justify exceeding 38 hours per week without proper compensation.
🔹 Employers must ensure that employees covered by an Award or enterprise agreement are receiving correct overtime payments.
🔹 If employees are paid an annual salary, contracts should clearly outline whether it includes overtime and ensure that actual work hours align with Fair Work requirements.

Link to the ‘Right to Disconnect’ Laws

This ruling may also influence how the Fair Work Commission enforces Australia’s new right to disconnect laws, which take effect for small businesses on August 26, 2025.

Under these laws, employees can refuse to monitor or respond to work-related contact outside of hours unless the refusal is unreasonable. This case suggests that requiring employees to be regularly available outside standard hours—without compensation—could increase the likelihood of employees lawfully refusing such contact.

What Should Employers Do Now?

🔹 Review employee contracts to ensure compliance with Fair Work standards.
🔹 Assess overtime policies and confirm that employees receive the correct entitlements.
🔹 Monitor workload expectations, ensuring that additional hours are necessary and justified.
🔹 Prepare for Right to Disconnect regulations by establishing clear guidelines on after-hours communication.

For employers, this case is a wake-up call—ensuring compliance now can help avoid costly legal disputes and promote a fair and sustainable workplace.