On 7 October 2021, the Fair Work Commission (Commission) issued a decision concerning the casual loadings and weekend penalty rates under the Hair and Beauty Award 2010 (Award). This decision was made to address the inconsistency between the relevant Award provisions and the Full Bench’s views expressed in the Penalty rates decision, which were raised in a separate decision issued on 7 January 2020 (2020 FWCFB 39).

The decision changes how the weekend penalty rates for casual employees are to be calculated, adopting the Productivity Commission’s ‘default method’ which is to add the casual loading to the Saturday and Sunday penalty rates. This is based on the Productivity Commission’s conclusion that penalty rates compensate for the disability associated with the time that the work is performed, and that the casual loading is a separate and different form of compensation for a different disability. This change is subject to a phased-in implementation table as set out below in clause 31.2(f) at which the weekend penalty rates for casual employees will increase at 5% increments.

What are the changes?

Clause 31.2 of the Award will be varied as below:

(d) Saturday work

• (i) For all ordinary hours worked on a Saturday within the spread of hours specified in clause 28.2(a), full-time and part-time employees will be paid at 133% of the ordinary hourly rate for a full-time employee.
• (ii) For all ordinary hours worked on a Saturday within the spread of hours specified in clause 28.2(a), casual employees will be paid at 158% (including casual loading) of the ordinary hourly rate for a full-time employee, subject to clause 31.2(f)(i).

(e) Sunday work

• (i) For all ordinary and overtime hours worked on a Sunday, full-time and parttime employees will be paid at the rate of 200% of the ordinary hourly rate for a full-time employee.
• (ii) For all ordinary and overtime hours worked on a Sunday, casual employees will be paid at the rate of 225% (including casual loading) of the ordinary hourly rate for a full-time employee, subject to clause 31.2(f)(ii).

(f) Phased-in implementation of weekend penalty rates for casual employees

• (i) The Saturday penalty rate for casual employees referred to in clause 31.2(d)(ii) is subject to a phased-in implementation timetable as follows:

 

Date	Saturday penalty rate
	% of ordinary hourly rate for a full-time employee
3 November 2021 to 30 January 2022	133%
31 January 2022 to 29 April 2022	138%
30 April 2022 to 30 December 2022	143%
31 December 2022 to 29 April 2023	148%
30 April 2023 to 30 December 2023	153%
From 31 December 2023	158%

 

• (ii) The Sunday penalty rate for casual employees referred to in clause 31.2(e)(ii) is subject to a phased-in implementation timetable as follows:

 

Date	Sunday penalty rate
	% of ordinary hourly rate for a full-time employee
3 November 2021 to 30 January 2022	200%
31 January 2022 to 29 April 2022	205%
30 April 2022 to 30 December 2022	210%
31 December 2022 to 29 April 2023	215%
30 April 2023 to 30 December 2023	220%
From 31 December 2023	225%

(g) Employment on rostered day off
Where it is mutually agreed upon between the employer and the employee (such agreement to be evidenced in writing), an employee may be employed on their rostered day off at the rate of 200% of the ordinary hourly rate of pay for a full-time employee for all time worked with a minimum payment as for four hours’ work.

When will the changes come into effect?

The changes come into operation from the first full pay period on or after 3 November 2021.

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

Further information

To view the varied Award from the operative date above click here.