Consultation to start concerning proposed role-based back pay model

  21 April 2026

In February 2026, Service NSW formally acknowledged it had been in contravention of the Service NSW (Salaries and Conditions) Employees Award as work performed before and after rostered shift times has not been paid as overtime due to the operation of Service NSW’s Rounding Rules.

From 13 February 2026, changes were made such that all staff will be paid for all time worked. Since Service NSW has acknowledged this, the Public Service Association (PSA) and representatives from Service NSW and Department of Customer Service have been meeting regularly to negotiate a process of backpay for impacted employees.

From today, Service NSW will commence consulting with employees about one of two aspects to the backpay proposal that has been proposed by the employer to address unpaid overtime due to the operation of the Rounding Rules.

During this time, the PSA will also be seeking to directly engage with members over the next two weeks to understand your feedback, concerns and questions. The PSA and the Department/Service NSW have not reached agreement on the role-based model or any other aspect of the backpay proposal. The PSA has agreed to allow Service NSW to conduct consultation on the proposed role-based model to allow initial feedback to be provided. The feedback and input from membership will inform the PSA’s next steps in the negotiations.

Consultation on role-based backpay model

The consultation will be focused on a ‘role-based backpay model’ that has been proposed by Service NSW which its representatives have proposed as a structured way to allow employees to opt to be compensated for unpaid overtime.

The role-based model proposed by Service NSW proposes a process whereby:

• Eligible employees are paid for each shift worked during the proposed period at the ‘role rate’ at the overtime salary rate as at 1 July 2025 for their grade at the time each shift was worked. For example, if you were a CCS grade 5.2 during 2020 and worked 100 shifts, the model proposes that you would be paid the equivalent overtime salary rate of a CCS grade 5.2 equivalent as at 1 July 2025 (i.e. the current rate at 150%).
• The proposed period is 1 July 2019 to 12 February 2026.
• Eligible employees is proposed to be employees working in a role covered by the Service NSW Award and for the period that the employee was not working under a flexible working hours arrangement i.e. accruing flex leave. This would include former employees who worked during the relevant period in one of these roles.
• The rate per role has been determined for the following roles by:
  • Service Centre and Middle Office roles Service NSW conducting data analysis of clock out data for the period of 1 July 2025 to 10 December 2025 and identifying the number of minutes which 75% of shifts have clocked out at.
  • Contact Centre Service NSW conducting data analysis of clock in and clock out data for the period of 1 January 2025 to 31 December 2025 and identifying the number of minutes which 75% of shifts have clocked in at and clocked out at.
• The role-based model for Contact Centre staff proposes to pay a pre-shift and post-shift amount as Service NSW’s position is that there is the ability to develop a model which identifies shift underpayments in this channel.
• The role-based model for Service Centre and Middle Office staff proposes to pay an amount based on post-shift data only as Service NSW’s position is that it could not identify a common occurrence of employees being required to work prior to the start of their rostered shifts. The Department’s position is that individual employees who believe they worked prior to their rostered start time that they would need to consider pursuing an individual pathway.

The process for individual pathway is continuing to be discussed and as this information is able to be provided, the PSA will advise members.

Next steps

A survey will be circulated tomorrow to provide a mechanism for feedback to be provided. The PSA will organise members meetings to discuss any feedback or questions.

Whilst we have been in consultation with Service NSW since February 2026, PSA wants to ensure the issue of backpay is resolved in a fair and clear way and will continue to engage in negotiations for as long as it takes to come to an agreement with the business that is endorsed by membership.