Annualised wage arrangements for restaurant, cafe and hospitality workers changed on 1st September 2022.
From 1 September 2022, annualised wage arrangements in the following awards are changing:
- Restaurant Award
- Hospitality Award
Our team at Fresh HR Insights every year completes award interpretations across a section of Awards. The Hospitability Industry General Award is one.
Here is a Snap Shot of what we cover in the Hospitability General Industry Award Interpretation
In regard to the change as set out in the title.
CLAUSE 24 – ANNUALISED SALARY ARRANGEMENTS
Under this clause, instead of paying full time and part time employees according to each hour they work, an employee can agree with their employer that they will be paid an annual salary on the following basis:
- Annual salaries must be paid at a rate equivalent to at least 25% or more above the minimum weekly rate set out in the award, multiplied by 52 weeks.
- The 25% loading is designed to compensate for overtime, penalty rates and any other monetary award entitlement. Please note that if your employee consistently works more than 38 hours per week, and or outside the hours of Monday to Friday 7:00am to 7:00pm, then 25% may not be sufficient to cover their entitlements.
- The employer and employee must agree in writing (i.e., through a contract of employment) which monetary entitlements in the award are covered by the salary. For full details on what penalties and allowance may be incorporated into the annualised salary refer to award Clause 24.
- The employer must perform an annual reconciliation (or sooner if employment is terminated before a year is completed) of the salary the employee was paid against what the employee would have been entitled to if they had been paid hourly under the Award, including all overtime and penalty rate payment obligations based on the actual work pattern.
- In order to do this, the employer must keep all records relating to starting and finishing times of employees under an annualised salary arrangement, which must be signed weekly by the employee.
- Where the comparison shows a shortfall in the employee’s wages, the employee must be paid the difference between the wages earned under the Award and the actual amount paid.
To grab a copy of Hospitality General Industry Award 2020 [MA000009] Award Interpretation
Click on the picture below
