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Modern Award changes – Fact Sheet 8 – Living away from home allowance
Living away from home allowances are payable under the Onsite Award.
Wednesday, 21st September 2022
You will be required to pay the living away from home allowance where:
- an employee is employed on construction work; and
- the site is located at such a distance from the employee’s usual place of residence or any separately maintained residence; and
- they cannot reasonably return to that place each night.
Frequently asked questions regarding the living away from home allowance
When will an employee be entitled to a living away from home allowance?
Your employees will be entitled to living away from home allowance where the employee is employed on construction work at such a distance from the employee’s usual place of residence or any separately maintained residence that the employee cannot reasonably return to that place each night, provided that:
- the employee is not in receipt of relocation benefits
- the employee is maintaining a separate place of residence to which it is not reasonable to expect the employee to return each night and
- the employee has provided the correct details of their usual place of residence, or any separately maintained address, to the employer.
How can you determine if the allowance is payable?
It is recommended that you view the entitlements under Clause 25 of the Onsite Award each time a scenario arises where an employee may have an entitlement to living away from home allowance.
Employers need to take the following into consideration:
- the need to obtain and verify the employees address from engagement - this will affect the entitlement under the clause
- the entitlement of accommodation and meals when living away from home - meals and accommodation are to be provided or reimbursed by the employer where the employer is unable to provide one or the other or both
- an employee will not be entitled to any travelling time entitlements if they’re entitled to a living away from home allowance and
- in circumstances in which an employee is engaged on a job away from home for more than 8 weeks, the entitlement of rest and recreation leave time off is exclusive of travel time.
This information is part of a series of updates on the Modern Award changes aimed at assisting members understand the requirements. More information can be found in the articles in the ‘What to read next’ section.
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