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Update to the Hospitality Industry (General) Award 2020

4 Yearly Review of Modern Awards – Annualised Wage Arrangements
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Update to the Hospitality Industry (General) Award 2020

Update to the Hospitality Industry (General) Award 2020

10 May 2022

On 7 April 2022, the Fair Work Commission issued a decision relating to an outstanding issues as part of the 4 yearly review of modern awards concerning annualised wage arrangements. The issue was identified as follows:

  • What should be the “outer limit” numbers of penalty rate hours and overtime hours prescribed in the annualised wage arrangements provisions to be placed in the Hospitality Industry (General) Award 2020 (Hospitality Award).

What are the changes?

  • Applies to all employees, other than those under the Managerial Staff (Hotels) classification level.
  • The employee’s annual wage must be at least 25% more than the award minimum weekly for their classification multiplied by 52.
  • Employers must make sure the annual wage is enough to cover the award entitlements that they have included in the arrangement, including:
    • Minimum wages
    • Allowances
    • Overtime and penalty rates for a limited number of hours
    • Payment for Annual Leave Loading
    • Additional public holiday arrangements for full time employees
  • The annual wage arrangement needs to be in writing and include key details highlighted in the determination (clause 24.2(d)).
  • The employer must keep a record of the employee’s starting and finishing times, and any unpaid breaks taken. This record must be signed by the employee or acknowledged as correct in writing each pay period or pay cycle. This record is used for annual reconciliations.
  • The maximum (or ‘outer limit’) number of penalty hours and overtime hours the employee can work within any roster cycle without extra payment is:
    • 18 ordinary hours that are normally paid at a penalty rate under cl 29.2(a), excluding hours worked between 7.00pm to midnight; or
    • An average of 12 overtime hours per week in excess of ordinary hours.
  • If an employee works for more than their agreed maximum (or ‘outer limit’) overtime or penalty hours, they need to be paid for the extra hours at the overtime or penalty rate in the award.
  • Employers have to undertake a reconciliation of the employee’s annual wages every 12 months after the arrangement starts or, within any 12-month period upon termination of employment. If the amount paid is less, the employer must pay the employee the difference within 14 days.

When do the changes come into effect?

The determination comes into operation from the first full pay period that starts on or after 1 September 2022.

To view the determination for the Hospitality Award, click here

Final Decision

To view the final decision for all abovementioned Awards, click here.

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