Calculating pay when you have a Hybrid Role
One of the most common questions we receive from clinic owners and managers is whether an allied health professional, such as a physiotherapist, chiropractor, osteopath, remedial massage therapist or any others, can be paid a lower “admin” rate when performing non-clinical or administrative tasks.
Employers may see logic in paying therapists or other health professionals a lower hourly rate for admin duties when they don’t have clients and for example may complete reception duties, but this tactic can result in breaches to the Award.
Two Roles, One Employer: When Does it Work?
While it’s possible for an employee to hold two different roles with separate employment contracts under the same employer, this arrangement is typically only permissible when the two positions are distinct and have their own sets of responsibilities and duties.
For instance, you could have an arrangement where a health professional, such as a physiotherapist, is employed as a Receptionist for 80% of their role and spends the remaining 20% performing their clinical duties. In this scenario, provided they have clearly distinct contracts and are rostered separately, this could be an acceptable hybrid role structure.
Learning from Legal Cases
The Fair Work Act and several legal cases have established clear guidance around what constitutes a “separate role” under the same employer. One case, Lacson v Australian Postal Corporation [2019], determined that unless there are truly separate and distinct contracts and shifts for different roles, the employee must be treated as holding one position. The worker in this case was employed in two part-time roles with different responsibilities but was still awarded back-pay when his employment was viewed as a single, unified position.
For Allied Health businesses, this precedent has direct implications: paying a lower “admin” rate for non-clinical tasks could be viewed as an attempt to avoid award obligations. Under the Health Professionals and Support Services Award (HPSS Award), a health professional is not considered a support services employee. If a therapist does administrative work for part of their shift and therapy work for another, the higher rate of pay would generally apply for the entire shift.
What the Award Says About Hybrid Roles
The HPSS Award covers both health professionals and administrative staff. A Support Services Employee, such as a receptionist or administrator, is covered under this Award. However, health professionals like physiotherapists or massage therapists are classified differently. While it’s possible to have an employee perform both roles, it’s crucial that they are engaged under separate contracts and shifts to ensure you’re meeting your legal obligations.
Even though it’s legal for an employee to hold two distinct roles under separate contracts (e.g., one for administration and one for clinical work), in practice, splitting a health professional’s duties within the same shift is problematic.
Another consideration is the “higher duties” clause under Clause 18 of the HPSS Award. It states that if an employee, such as a health professional, performs higher-level duties for more than 2 hours in a single shift, they are entitled to be paid at the higher rate for the entire shift. The Award does not contain provisions for “lower duties” rates, making it risky to try to pay a professional a lower admin rate for portions of a shift, as it could result in underpayment issues.
When Can You Pay Different Rates?
If an employee genuinely has two separate roles — for example, a chiropractor working as a therapist on Mondays and Wednesdays and then as a receptionist on Tuesdays — you could structure this using separate employment contracts, rosters, and distinct role descriptions. However, it’s essential to ensure these roles are truly separate and not overlapping. The arrangement must also be at the employee’s request to avoid any perception that the employer is attempting to reduce entitlements.
What This Means for Allied Health Business Owners
As an Allied Health business owner, it’s critical to ensure that your employees are paid fairly and in compliance with award obligations. The easiest way to avoid any potential underpayment issues is to stick to a single rate of pay that aligns with the primary duties of your therapist.
If your therapists are expected to do administrative tasks in between clients, this should be considered part of their core role, and paying a lower rate would likely be viewed as an attempt to avoid paying the appropriate rate for their main classification.
Options With Hybrid Roles
Let’s say you have a remedial massage therapist whose ordinary pay rate is $32/hr, and they work as a receptionist where the pay rate is $28/hr and you wish to pay the two separate rates of pay.
For each position, have separate employment contracts, clearly defined job descriptions, and distinct work hours or shifts.
Conversely let’s say you have a physiotherapist who also works as your practice manager and they are employed for full time hours. You are willing to offer a salary of $90,000 per year – whereas the minimum wage under the Award for these roles is perhaps closer to $70,000 (depending on their experience and classification). In this case, you could simply have one employment contract that outlines their role is a dual role as you are paying the same salary for all hours worked.
Final Thoughts
Navigating pay rates and award classifications for hybrid roles can be complex, but getting it right is essential to avoid underpayment issues and ensure your business remains compliant.
Need more support?
If you are ready to ensure your contracts, shifts, and pay rates are structured correctly, reach out to us for a free initial call.
https://hrforhealthleaders.com.au/free-call