Shift swaps happen in almost every Australian workplace that runs on rosters. An employee asks a colleague to cover their Saturday afternoon, the colleague agrees, and the swap goes ahead. Simple enough — until something goes wrong. The swapped employee works overtime without anyone realising. A qualification gap puts a customer at risk. Or an injury occurs on a shift with no record of who was actually approved to work it.
Many businesses allow shift swaps informally, relying on verbal agreements between staff and ad hoc manager approval. But without a formal, documented policy, you are exposed to real compliance risk under the Fair Work Act 2009. Using shift swap software with built-in compliance checks is the most reliable way to enforce your policy. This guide walks through the specific legal requirements that apply to shift swaps in Australia and shows you how to build a policy that protects your business, your managers, and your employees.
If you are looking for a step-by-step process for managing swaps day-to-day, see our guide to managing shift swaps. This article goes deeper into the Fair Work compliance side — the legal foundations your swap process must sit on.
Quick summary
- Informal shift swaps create overtime, pay rate, and workers comp liability risks
- The Fair Work Act requires consultation on roster changes and protects employee consent
- Modern awards add specific rules for overtime thresholds, penalty rates, and qualifications
- A written policy with documented approval protects your business in Fair Work disputes
Why your business needs a formal shift swap policy
Most workplace shift swaps happen without incident. But the ones that go wrong can create serious problems — and without a written policy, you have no framework to fall back on. Here are the specific risks of relying on informal swap arrangements:
Inconsistent treatment
Without clear rules, one manager might approve every swap while another refuses them. If approval patterns correlate with protected attributes — age, gender, union membership — you face potential discrimination claims. Consistency requires a documented standard that every manager follows.
Pay rate confusion
When Employee A swaps their weekday shift for Employee B's Sunday shift, who receives Sunday penalty rates? The answer is clear under the award — the person who actually works the shift — but without a process to update payroll, errors are common and constitute underpayment.
Overtime liability
A swap that looks simple on the surface can push an employee over their ordinary hours threshold for the week, triggering overtime rates. If no one checks total hours after a swap, you risk systematic underpayment — exactly the kind of issue Fair Work investigates.
Workers compensation gaps
If an employee is injured during a shift they were never formally approved to work, it creates complications with workers compensation claims. While cover generally applies, undocumented swaps make the claims process harder and can raise questions about employer oversight.
No documentation for disputes
When a rostering dispute reaches Fair Work, the first thing investigators look for is documentation. If your swap arrangements exist only as text messages between staff, you cannot demonstrate that proper processes were followed or that consent was genuinely given.
Qualification mismatches
An informal swap might put an unqualified employee on a shift that requires specific certifications — a first aid officer role, an RSA-required bar shift, or a position requiring particular childcare qualifications. This creates legal liability and safety risk.
Fair Work Act requirements for shift changes
The Fair Work Act 2009 does not contain a specific section on shift swaps. However, several provisions directly govern how roster changes — including swaps — must be handled. Understanding these is essential for building a compliant policy.
Consultation about roster changes (s.145A)
Section 145A of the Fair Work Act requires employers to consult with employees about changes to their regular roster or ordinary hours of work. While a mutually agreed swap between two willing employees is different from an employer-imposed change, your policy must make the distinction clear. If a manager initiates or directs a swap — rather than two employees requesting one — consultation obligations apply.
Genuine consent and reasonable business grounds
Shift swaps must involve genuine, freely-given consent from both employees. A swap where one employee feels pressured — by a manager or a colleague — is not a voluntary arrangement and could be challenged. Equally, employers can refuse swaps on reasonable business grounds, but these grounds must be documented and applied consistently.
Record-keeping obligations
The Fair Work Act and Fair Work Regulations 2009 require employers to keep accurate records of hours worked, including start and finish times. After a shift swap, your records must reflect who actually worked each shift — not who was originally rostered. Using rostering software that updates rosters and timesheets automatically after approved swaps is the most reliable way to meet this obligation.
Employee right to refuse unreasonable changes
Employees have the right to refuse changes to their roster that are unreasonable. This matters for swaps in two ways: an employee cannot be compelled to accept a swap they did not initiate, and an employee who requested a swap cannot be penalised if the other party declines. Your policy must protect this right explicitly.
Mutual agreement vs imposed changes
The critical distinction is between a swap that two employees voluntarily agree to and a change imposed by the employer. A genuine swap is a mutual arrangement — the employer's role is to approve or refuse based on operational and compliance criteria. If the employer directs the swap, it becomes a roster change subject to full consultation and notice requirements under the applicable legal rostering obligations.
Award-specific considerations for shift swaps
Modern awards add a layer of requirements on top of the Fair Work Act. Your shift swap policy must account for the specific rules in your applicable award, because a swap that is fine under one award may breach another.
Hospitality Award
The Hospitality Award has specific overtime thresholds and penalty rate structures that shift swaps can easily trigger. A swap that moves an employee from a weekday to a weekend shift changes their penalty rate entitlement. Swaps must also respect the ordinary hours span and minimum engagement periods for casual employees.
General Retail Industry Award
The General Retail Award defines ordinary hours spans that vary by employment type. A swap that moves a part-time employee outside their agreed ordinary hours pattern may require a formal variation to their employment terms, not just a simple swap approval.
SCHADS Award
The SCHADS Award has strict requirements around minimum staffing levels and worker qualifications. A shift swap in disability services or community care must ensure the replacing employee holds all required certifications and that client-to-staff ratios are maintained. This award also has complex rules around broken shifts and sleepover arrangements.
Check your specific award
Every modern award has its own rules for ordinary hours, overtime triggers, penalty rates, and minimum engagements. Before finalising your shift swap policy, review the specific provisions of every award that covers your employees. If you operate across multiple awards, your policy must account for the strictest requirements or include award-specific guidelines.
What every shift swap policy must include
A compliant shift swap policy needs to address the following areas. Use this as a checklist when drafting or reviewing your policy, or download our free shift swap policy template as a starting point.
Eligibility criteria
Define who can participate in shift swaps. Consider employment type (permanent, part-time, casual), probation status, and any role-specific restrictions. Be clear about whether swaps are available across departments or only within the same team.
Request process and minimum notice
Specify how employees submit swap requests — ideally through your shift swap software rather than informal messages. Set a minimum notice period (24-48 hours at minimum; 3-7 days is best practice) to allow adequate compliance checks.
Approval authority and criteria
State who has authority to approve or refuse swap requests and the criteria they must apply. Managers should assess qualification requirements, overtime implications, penalty rate changes, and minimum staffing levels before approving any swap.
Qualification and certification checks
Require verification that the replacement employee holds all certifications and qualifications needed for the shift. This includes RSA/RSG for hospitality, first aid certifications, Working with Children checks, and any industry-specific requirements.
Pay rate handling
Clarify that each employee is paid at their own applicable rate for the hours they actually work after the swap. If a swap moves someone onto a penalty rate shift, they receive the penalty rate. This must be reflected in payroll — connecting your roster to your payroll integration helps automate this.
Overtime and penalty rate implications
Require managers to check whether approving a swap will push either employee over their ordinary hours threshold for the pay period. If it will, the swap should either be refused or approved with the understanding that overtime rates apply. Document this check.
Maximum swap frequency
Consider setting a reasonable limit on how often employees can swap shifts within a roster period. Excessive swapping can undermine roster stability, make compliance tracking difficult, and may indicate underlying availability or engagement issues that need addressing.
Documentation and record-keeping
Every swap must be documented with the original roster, the swap request, both employees' consent, manager approval (or refusal with reasons), and the updated roster. Digital records through rostering software provide the most defensible audit trail.
Dispute resolution process
Include a clear process for resolving disagreements about swap requests — whether that is a refused request, a dispute about who agreed to what, or a concern about inconsistent treatment. This should align with your broader workplace grievance procedure.
Policy review schedule
Commit to reviewing your shift swap policy at least annually or whenever your applicable modern award is updated. Award changes can alter overtime thresholds, penalty rate structures, and consultation requirements — all of which directly affect how swaps should be managed.
Common policy mistakes that trigger Fair Work complaints
Even businesses that have a shift swap process in place can make mistakes that create compliance exposure. These are the errors we see most often:
Managers initiating swaps without genuine consent
When a manager asks Employee A to swap with Employee B to solve a staffing gap, it may look like a swap but is functionally a roster change. If the employee feels pressured to agree, consent is not genuine. A swap must be initiated by the employees themselves or, if management-initiated, handled with full consultation under s.145A.
Not tracking hours after swaps
This is the most common compliance failure. A swap is approved without anyone recalculating total hours for the affected employees. The result is undetected overtime breaches and underpayment of penalty rates. Your time and attendance system must reflect post-swap hours accurately.
Inconsistent approval standards
Approving swaps for some employees while refusing similar requests from others — without documented business reasons — creates a pattern that can support discrimination claims. Every refusal should reference specific, objective criteria from your written policy.
No written policy at all
Many businesses allow swaps as an informal arrangement. While this may work day-to-day, it leaves you with no defence if a dispute arises. Fair Work expects employers to have documented processes for managing roster changes. An unwritten policy is, from a compliance perspective, no policy at all.
Ignoring qualification requirements
Approving a swap without checking whether the replacement employee is qualified for the role creates safety risk and potential regulatory breaches. This is particularly critical in healthcare, childcare, hospitality (RSA requirements), and security — any industry where specific certifications are legally mandated for the role.
Free shift swap policy template
Download our free, ready-to-use shift swap policy template designed for Australian businesses. It covers all the essentials listed above and can be customised for your specific industry and award requirements.
Get the free templateFrequently asked questions
Are shift swaps legal under Australian employment law?
Yes, shift swaps are legal in Australia. However, they must comply with applicable modern award conditions, the Fair Work Act, and any enterprise agreement terms. Both employees must genuinely consent, and the swap cannot result in award breaches such as exceeding maximum hours or failing to pay correct penalty rates.
Can an employer refuse a shift swap request?
Yes, employers can refuse shift swap requests on reasonable business grounds. These include qualification or certification mismatches, potential overtime or penalty rate liabilities, minimum staffing or skill-mix requirements, and compliance concerns under the applicable modern award. Document the reason for refusal to protect against dispute claims.
Who gets paid what rate when employees swap shifts?
Each employee must be paid at their own applicable rate for the hours they actually work after the swap. If the swapped shift falls on a Sunday or public holiday, the employee working that shift receives the penalty rate — not the employee who was originally rostered. Employers must recalculate rates for both employees after a swap is approved.
Does a shift swap count towards overtime calculations?
Yes. Hours worked through a shift swap count towards the employee's total weekly or fortnightly hours for overtime threshold purposes. If accepting a swap pushes an employee over their ordinary hours limit under the applicable award, overtime rates apply. Rostering software with overtime warnings helps employers track total hours after swaps to avoid underpayment.
What happens with workers compensation if an employee is injured during a swapped shift?
The employee who actually works the shift is covered by workers compensation if injured, regardless of who was originally rostered. However, if the swap was not formally approved and documented, it can create complications with insurance claims and liability. A formal approval process with records protects both the business and the employee.
Do I need a written shift swap policy?
While the Fair Work Act does not explicitly mandate a written shift swap policy, having one is strongly recommended. A written policy demonstrates consistent and fair treatment of employees, provides a documented process that can defend against discrimination or unfair treatment claims, and ensures managers apply the same standards across all swap requests. Download our free shift swap policy template to get started.
How far in advance should shift swap requests be submitted?
Best practice is to require swap requests at least 24-48 hours before the shift starts, though many businesses set longer notice periods of 3-7 days. The notice period should allow managers adequate time to check qualifications, assess overtime implications, and confirm both employees genuinely consent. Your policy should specify the minimum notice required.
Related RosterElf features
Manage shift swaps with built-in compliance
RosterElf automates shift swap approvals, tracks hours against award thresholds, and keeps a complete audit trail for Fair Work compliance.
- Automated swap requests with manager approval
- Overtime and penalty rate checks before approval
- Complete documentation for every swap
Disclaimer: This article provides general guidance only and does not constitute legal advice. Employment law, modern award provisions, and Fair Work requirements are subject to change. The information in this article is current as at the date of publication but may not reflect subsequent legislative or award updates. Always verify current requirements using official Fair Work Ombudsman resources and consult with a qualified employment lawyer or industrial relations professional for advice specific to your business circumstances.
