Call free on
1300 575 394
Get a quote

Changes to the Restaurant Industry Award 2020

Modern Award update
Return to previous page
Changes to the Restaurant Industry Award 2020

Changes to the Restaurant Industry Award 2020

9 August 2021

In response to an application by the Restaurant and Catering Industry (RCI), the Fair Work Commission (Commission) on 14 July 2021 issued a decision to insert two new schedules into the Restaurant Industry Award 2020, Schedule R and Schedule AA. The Commission has confirmed that both Schedule R and Schedule AA will operate from 11 August 2021 until 10 August 2022 in order to assist employers and employees to recover from the COVID 19 Pandemic.




What are the changes?

1. Exemption rates
  • Clause R.3 allows an employer and full-time employee to enter into an agreement to pay the employee no less than 170% of their relevant Level rate of pay each week as set out in clause 18- Minimum Rates (the Exemption Rate)
  • This clause does NOT apply to Level 1 to 4 employees. Only full-time employees paid at Level 5 or Level 6 may enter into an agreement.
  • When an agreement is reached the following clauses will not apply:
    • Clauses 16.5 and 16.6 (meal break);
    • Clause 21 (allowances);
    • Clause 23 (overtime Rates) but not clause 23.2; and
    • Clause 24 (penalty rates)
  • Employees that have entered into such an agreement will be paid the Exemption Rate for each hour worked up to and including 57 hours in a week and where an employee works more than 57 hours in the week the employee must be paid 150% of the Exemption Rate for the first two hours in excess of 57 hours in the week and 200 % of the Exemption Rate thereafter.
  • The Exemption Rate shall also be the rate for the purposes of calculating Annual Leave and Personal Leave.
  • Clause R.3 does not apply to employees classified under the administrative and general stream (Clause A.4)

2. Access to a simplified classification structure and definition (set out in Schedule AA)
  • Clause R.4 allows an employer to elect to classify all relevant employees under the classifications set out in Schedule AA in substitution for classifying the employee in accordance with Schedule A.
  • An employee classified under Schedule AA will be paid the minimum rates for the relevant classification in Schedule AA as set out in the table which will be prescribed under Clause R.4.2.

3. A ‘substitute’ allowance in substitution for certain work and expense related allowances
  • Clause R.5 included to allow individual employer’s and employee’s or all employees in the workplace collectively, if 75% of the employees agree, can come to an agreement to pay a Substitute Allowance. Where an agreement to pay the Substitute Allowance is made, the following clauses in this award will no longer apply:
    • Clauses 16.5 and 16.6 (meal break);
    • clause 21.2 (meal allowance);
    • clause 21.3 (split shift allowance);
    • clause 21.4 (tool and equipment allowance);
    • clause 21.5 (special clothing allowance); and
    • clause 21.6 (distance work allowance)

Conditions to implement the above changes
  • Before initiating any of the provisions in Clause R.3 to R.5 (refer to the above) the employer MUST consult with all employees affected by the proposed change and their representatives (if any).
  • Where an employer and employee enter into an agreement under Clause R.3 or Clause R.5 it must be in writing; specify in writing, that either party may withdraw from the agreement by providing 4 weeks’ notice; be signed by both parties; and include the start date the agreement commences.


When will the changes come into effect?

The changes come into effect on the first full pay period that starts on or after 11 August 2021.

To view the decision in full click here.
To view the determination in full click here.


Other Key Changes

  • The Commission included a second determination attached to the decision, varying the wage rates and the substitute allowance contained in Schedule R in order to ensure they are in line with the increase determined in the 2020-21 Annual Wage Review decision.


When will the changes come into effect?

The changes come into effect on the first full pay period that starts on or after 1 November 2021.

To view the decision in full click here.
To view the determination in full click here.


Further information

To view the updated versions of the Restaurant Industry Award 2020 from the operative date above click here.

Sign up to get the latest news and updates

Like what you’re hearing?

With plans available from just $58 per week, now is an excellent time to join Workplace Assured.

PROTECTION
REASSURANCE
GUIDANCE