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Important update: If you have received an opt out notice about the JB Hi-Fi Class Action, read more here.
Notice of Assessment – Explainer
Loss calculations have now been completed for all Participating Group Members in accordance with the Loss Assessment Formula (Annexure A to the Settlement Scheme).
Participating Group Members may be entitled to compensation for:
The Notice of Assessment sets out:
Total Estimated Loss – which is calculated in accordance with the Settlement Scheme prior to the apportionment of the total compensation pool (i.e. before the pro-rata calculation)
Estimated Distribution Amount – which includes your “In Hand Amount” as well as the amount of tax withheld and any superannuation contribution to be paid on your behalf. The Estimated Distribution Amount is your share of the total compensation available to Participating Group Members (i.e. after the pro-rata calculation). The compensation pool must be equally apportioned across all group members because the total of Estimated Loss for all group members is greater than the available compensation funds. All group members receive the same % proportion of their Estimated Loss. In other words, all group members receive a share of the available compensation that is directly proportionate to their share of the total Estimated Loss.
Calculation of Unrostered Unpaid Overtime
Unrostered Unpaid Overtime (including time required to be worked during meal break periods on day shifts, Mondays to Fridays) will be calculated pursuant to Method 1 and Method 2 in the Loss Assessment Formula.
Method 1:
Average Hours x Rate of Pay x Full-time Equivalent (FTE) load = preliminary entitlement to unrostered overtime per fortnight.
Method 2:
The sum of all amount/s calculated pursuant to Method 1 for each calendar year will then be multiplied by the “Weighting” assigned to that calendar year.
Important notes:
Term | Meaning | ||||||||||||||
Average Hours | The Loss Assessment Formula sets the Average Hours of unpaid, Unrostered Overtime worked per junior medical officer per fortnight as 9.48 hours during the Claim Period. This has been calculated based on evidence gathered during the investigation and running of the Class Action. It is important to note that 9.48 hours is an estimate. The precise hourly entitlement of each Participating Group Member cannot be quantified because:
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Rate of Pay
| The Rate of Pay that will be used in the Loss Assessment Formula is the hourly rate of pay set out in the applicable version of the Health Professional and Medical Salaries (State) Award for the Participating Group Member’s Classification during the fortnight. | ||||||||||||||
Classification | Any of the following categories of junior medical officer: intern, resident (1st year – 4th year), registrar (1st year – 4th year), or senior registrar. | ||||||||||||||
Full-time equivalent load (FTE) | For the purposes of the Unrostered Overtime calculations, the Participating Group Member’s FTE will be based on the FTE as set out in the Notice of Claim Data and Eligibility. | ||||||||||||||
Weighting | The weighting is an adjustment made to reflect the fact that less Unrostered Overtime was claimed by, and paid to, Participating Group Members before 2019 than after 2019 because of the introduction of UROC and the expansion of the categories of authorised Unrostered Overtime in the policy directives. The following weighting values have been adopted for the purposes of the Loss Assessment Formula. These weightings reflect a modest adjustment to account for an increase in unrostered overtime being claimed and paid following changes to the Policy Directive and the introduction of the UROC system from 2019 onward. The weighting is modest due to limited evidence to determine exactly what this increase in claimed and paid unrostered overtime was. These weightings are applied to the total estimated unrostered overtime loss calculated for each year in accordance with the Loss Assessment Formula.
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The loss assessment formula sets the Average Hours of unpaid, Unrostered Overtime worked per junior medical officer per fortnight as 9.48 hours during the Claim Period. This has been calculated based on evidence gathered during the investigation and running of the Class Action.
It is important to note that 9.48 hours is an estimate. The precise hourly entitlement of each Participating Group Member cannot be quantified because:
- There are no records or data that would enable actual or average actual hours to be determined;
- Each Participating Group Member’s experience and working hours are different, and
- Some of the time spent by Participating Group Members at hospitals would not be overtime for which an amount is payable under the applicable version of the Public Hospital Medical Officers (State) Award.
The Rate of Pay that will be used in the Loss Assessment Formula is the hourly rate of pay set out in the applicable version of the Health Professional and Medical Salaries (State) Award for the Participating Group Member’s Classification during the fortnight.
Any of the following categories of junior medical officer: intern, resident (1st year – 4th year), registrar (1st year – 4th year), or senior registrar.
For the purposes of the Unrostered Overtime calculations, the Participating Group Member’s FTE will be based on the FTE as set out in the Notice of Claim Data and Eligibility.
An adjustment made to reflect the fact that less Unrostered Overtime was claimed by, and paid to, Participating Group Members before 2019 than after 2019 because of the introduction of UROC and the expansion of the categories of authorised Unrostered Overtime in the policy directives.
Calculation of Unpaid Meal Breaks
The Loss Assessment Formula provides that a Participating Group Member is entitled to compensation for Unpaid Meal Breaks if:
A Participating Group member was rostered to (a) start a shift before 8am or end a shift after 6pm on Mondays to Fridays; or (b) a shift on Saturdays or Sundays; and 30 or 60 minutes was deducted from that shift for a meal break
It was known at the time of settlement, that the Health Roster Data that forms part of the Detailed Claim Data was incomplete.
There is no Health Roster Data prior to 1 January 2016, therefore all Unpaid Meal Break loss from 14 December 2014 to 31 December 2015 is calculated based on a standardised average (Method 4).
From 1 January 2016 to 1 October 2018, the Health Roster Data system was gradually introduced across NSW Health Local Health Districts and Specialty Networks. Unpaid Meal Break Loss over these years was calculated by either method 3 or 4, depending on the Local Health District or Specialty Network, and whether Health Roster Data was available.
Health Roster Data was fully implemented and available across all Local Health Districts and Specialty Networks from 2 October 2018, so all Unpaid Meal Break loss from 2 Oct 2018 to 21 March 2024 is calculated based on actual reported data (Method 3).
To calculate a Participating Group Member’s entitlement to compensation for Unpaid Meal Breaks, the Loss Assessment Formula provides:
Method 3:
When Health Roster data is available for the whole of a fortnight, the calculation of your preliminary entitlement for meal breaks that meet the above criteria will be the value of each meal break deduction (30 or 60 minutes) plus an amount equivalent to the statutory employer superannuation contribution on that value.
Method 4:
When Health Roster data is unavailable for the whole or part of a fortnight, the calculation of your preliminary entitlement for meal breaks that meet the above criteria will be calculated pursuant to Method 1 (Average Hours x Rate of Pay x Full-time Equivalent (FTE) load = preliminary entitlement per fortnight) multiplied by the number of fortnights you worked where Health Roster data is unavailable plus an amount equivalent to the statutory employer superannuation contribution on that value.
The Average Hours of all Participating Group Members’ meal break preliminary entitlements calculated under Method 3 is 0.83 hours per reported fortnight.
Calculation of Underpayment of Rostered Overtime
The Payroll Data provided by NSW Health that was used to calculate Unpaid Rostered Overtime was particularly complex and large, extending to approximately 30 million rows. The Scheme Administrator worked closely with expert data analysts to cleanse, standardise, and reconcile the data in preparation for the loss calculations. This process took approximately 6 months.
This data preparation work was undertaken to ensure that the application of the Loss Assessment Formula to the Claim Data was applied consistently and fairly across the group.
The Loss Assessment Formula provides that a Participating Group Member will be entitled to compensation for underpayment of Rostered Overtime in the following circumstance:
For each eligible employment period, your preliminary entitlement for underpayment of rostered overtime will be the sum of any fortnightly amounts calculated pursuant to the method below:
- Calculate total number of paid hours for the fortnight
- Treat the following as overtime:
- time designated as overtime hours in the Defendants’ payroll data;
- time worked in excess of 10 hours per effective start date; and
- time worked in excess of 10 days for the fortnight (allocating the shortest worked day/s to overtime)
- Calculate the total overtime hours and any residual overtime
- Apply penalty rate multipliers to total overtime hours
- First 2 hours (or part): 1.5x
- Any additional time: 2.0x
- Calculate the total number of hours that should have been paid
- Deduct the number of hours that were actually paid from the total number of hours that should have been paid to get the shortfall amount
- Shortfall x Rate of Pay = preliminary entitlement to compensation for underpayment of rostered overtime for the fortnight
Important Notes:
The Rate of Pay that will be used in the Loss Assessment Formula is the hourly rate of pay set out in the applicable version of the Health Professional and Medical Salaries (State) Award for the Participating Group Member’s Classification.
Interest Weighting
Interest weighting is to recognise that a Participating Group Member who is being compensated for underpayment of wages in the earlier part of the Claim Period has had to wait longer than a Participating Group Member who is being compensated for underpayment of wages in the later part of the Claim Period.
For example – if someone worked for NSW Health in 2014 and 2015, their interest weighting will be more than for someone who worked for NSW Health in 2023 and 2024 because the person who worked earlier in the Claim Period has had to wait longer to be compensated.
Each Participating Group Member’s estimated loss for a given financial year is multiplied by the interest weighting assigned to that financial year. The table below represents the interest weighting assigned to that financial year. Interest weighting reflects the accumulation of $1 from that year to the assessment end date (30 June 2026).
Interest Weighting Table:
Financial Year | Accumulated $1 (to 30 June 2026) |
FY2015 | 1.2749 |
FY2016 | 1.2455 |
FY2017 | 1.2216 |
FY2018 | 1.2033 |
FY2019 | 1.1855 |
FY2020 | 1.1682 |
FY2021 | 1.1608 |
FY2022 | 1.1600 |
FY2023 | 1.1586 |
FY2024 | 1.1259 |
FY2025 | 1.0802 |
Financial Year
Example Calculation of Interest:
Assume a Participating Group Member has the following estimated losses arising in different financial years:
Financial Year | Estimated Loss |
FY2018 | $1,000 |
FY2022 | $1,000 |
Under the Loss Assessment Formula, each yearly amount is multiplied by the interest weighting applicable to that financial year. In this example, the applicable weightings are therefore as follows:
FY2018 weighting: 1.2033
FY2022 weighting: 1.1600
The interest weighting calculations for FY 2018 and FY 2022 respectively are:
FY2018: $1,000 × 1.2033 = $1,203.30
FY2022: $1,000 × 1.1600 = $1,160.00
The total estimated loss including interest is therefore:
$1,203.30 + $1,160 = $2,363.30
The interest component across all years is $363.30.
This interest component is not subject to PAYG withholding tax as it is not considered wages. The interest may form part of your taxable income. You should seek your own independent financial advice when lodging your tax returns.
Difference between the Total Estimated Loss and the Estimated Distribution Amount
The Total Estimated Loss calculations contained in your Notice of Assessment, while based in part on Claim Data linked to your Stafflink number(s), are also based on a standardised and formula-based calculation applied consistently across all Participating Group Members. The application of standard assumptions and formulas may result in your Total Estimated Loss figure being higher than the actual losses that were incurred. The primary purpose of the Total Estimated Loss calculation is to calculate each Participating Group Member’s proportionate share of the available compensation.
In particular, the unrostered overtime component of loss is the largest across the group and is entirely calculated based on an average of 9.48 hours per fortnight for each Participating Group Member. This may result in an inflated Total Estimated Loss Figure.