Shared Industry Assistance Project Hospitality Industry (General) Award 2010

Shared Industry Assistance Project  In early 2011, the Fair Work Ombudsman (FWO) in conjunction with the Australian Hotels Association (AHA) commenced a national education campaign on changes to the Hospitality Industry (General) Award 2010 (HIGA).  The campaign has been funded by the Australian Government through the Fair Work Ombudsman's Shared Industry Assistance Projects (SIAP) Grant Program, which aims to better inform employers (particularly small to medium businesses) about changes to modern awards applicable to their industry sector. Following a competitive selection process, AHA was one of 15 successful organisations selected to deliver the education campaign in conjunction with the FWO.

HIGA INFORMATION UPDATE  Topic 1 –Application of new modern award  Topic 2 - National Employment Standards  Topic 3 - Hospitality Industry (General) Award 2010 (HIGA)  Topic 4 -General matters

APPLICATION: WHO HIGA APPLIES TO  Apply throughout Australia to employers engaged in the hospitality industry and includes :  Hotels, Motor inns, Motels  Serviced apartments  Ski lodges, Holiday flats/units,  Wine saloons and Wine bars  Taverns  Resorts  Casinos  Function areas and Convention centers etc – refer to notes  Coverage also extends to contract operators (ie cleaning, security) providing the contractor’s primary business is in the hospitality sector  A separate modern award exists for stand alone Restaurants and also for Registered and Licensed Clubs  See full scope of award in the HIGA booklet

APPLICATION: WHO HIGA DOES NOT APPLY TO  The Award does not cover restaurants or registered or licensed clubs  Modern Awards will not cover employees earning over $113,800 (indexed) per annum – pro rata for part time (as these people are viewed as high income earners and non award employees)  High income earners will still be subject to the NES  In some hotels, there may be employees subject to other modern awards

APPLICATION: AWARDS REPLACED BY HIGA  Former Federal Hospitality Awards  Former State Awards  Former Victorian Minimum Wage Orders  National Training Wage (now incorporated into HIGA)  Refer to list of replaced awards in HIGA booklet

APPLICATION: TRANSITION INTO HIGA  Former Federal Awards General Transitional matters (Schedule A of HIGA) South Australian Transitional (Schedule B of HIGA) Western Australia Transitional (Schedule C of HIGA) Refer to state specific transitional matters on AHA National website at or to the Pay and Conditions Guides in the Fair Work Ombudsman Award Finder tool at

NATIONAL EMPLOYMENT STANDARDS  Represent 10 legislated minimum conditions that are contained in the Fair Work Act 2009  Replaced the former Australian Fair Pay and Conditions Standard (AFPCS) from 1 January 2010  The NES is referred to in Modern Awards (HIGA) and provides minimum conditions that awards will build on  The NES represent minimum entitlements for all employees, even award free employees

NATIONAL EMPLOYMENT STANDARDS They are: Hours of Work Flexible working arrangements Parental Leave Annual Leave Personal Carer’s Leave and Compassionate Leave Community Service Leave Long Service Leave Public Holidays Notice of Termination and Redundancy Fair Work Information Statement (copy available at or at

MODERN HOSPITALITY AWARD  Stage 1 of the Award Modernisation process involved the review of Awards and NAPSAs for a number of industries, including hospitality  The process commenced in mid 2008 with consultations with key industry organisations and other interested parties  On 19 December 2008 the modern Hospitality Industry (General) Award 2010 was released by the then Australian Industrial Relations Commission. This award has been modified since that date  This Award commenced operation on 1 January 2010, and replaced former hospitality industry NAPSAs and Awards  The current edition of HIGA was published on 17 December 2010 (refer to or the Award Finder tool at to download)

HIGA: AWARD CONTENT  Reflects many existing conditions, particularly those from the former Federal Hospitality Award  The NES is referred to throughout the Award, with the Award building on some of those conditions, for example, an extra week of annual leave for a shiftworker (as defined)  Incorporates transitional arrangements from 1 July 2010  Incorporates National Training Wage rates for trainees

HIGA: CLASSIFICATION STRUCTURE  The modern award has a 6 level classification structure plus an introductory rate and a minimum rate for managers  The employee classification structure is detailed in Schedule D of HIGA (subject to transitional arrangements for SA and WA)  Each employment stream is defined in terms of wage levels (clause 20.1 of HIGA)  Each classification level has varying grades for the type of work performed – e.g.: F&B grade 1 is at Award Level 1 Cook grade 1 is at Award Level 2  The Fair Work Ombudsman has developed Pay and Conditions Guides to assist with finding correct rates of pay. These can be found at

HIGA: ALLOWANCES  The Award allowances are: Meal allowance – where working more than 2 hours of overtime Clothing, equipment and tools Uniform/Laundry allowance – catering employees including airport catering employees Laundry allowance – motel employees Vehicle allowance Working late – provision of transport in certain circumstances Working early – provision of transport in certain circumstances Working away from usual place of work allowance (80kms+) Travel allowance – airport catering employees Forklift allowance First Aid allowance Airport catering supervisor allowances Broken periods of work allowance Overnight stay allowance

HIGA: WAGE RATES  Minimum hourly rates per classification set out in HIGA  Wage rates reviewed as of 1 July annually  Late night penalties, weekend and public holiday penalties apply  25% loading for casual employees  Broken Periods of work allowance for full time and part time employees  For further information about wage summaries please contact the AHA or the Fair Work Infoline on Alternatively you can access wage rates at

HIGA: MINIMUM EMPLOYMENT ENTITLEMENTS The following is a list of wage considerations to be taken into account when paying employees:  Base award Monday to Friday hourly rate of pay, according to the employees classification;  Monday to Friday after 7pm additional penalty for full time, part time and casual employees;  Monday to Friday after midnight addition penalty for full time, part time and casual employees;  Casual loading of 25% Monday to Friday plus the above after 7pm and after midnight additional penalty;  Saturday, Sunday and Public Holiday penalty rates (including casual employees);  Overtime for full time and part time employees, where applicable;  Broken periods of work allowances if an employee (other than a casual employee) works a split shift or broken shift with more than two hours between two shifts worked in one day, an allowance is payable;

HIGA: MINIMUM EMPLOYMENT ENTITLEMENTS (continued) Breaks:  If an employee, including a casual employee, is required to work for five or more hours in a day they must be given an unpaid meal break of no less than 30 minutes. The break must be given no earlier than one hour after starting work and no later than five and a half hours after starting work.  If an employee is not given a meal break the employer must pay the employee an extra hourly or part thereof payment at the rate of 50% of the ordinary hourly rate from the end of six hours until either the meal break is given or the shift ends.  If an employee is required to work more than five hours after they are given the unpaid meal break, they must be given an additional 20 minute paid break.

HIGA: MINIMUM EMPLOYMENT ENTITLEMENTS (continued) And the main applicable allowances:  meal allowance if the employee is required to work more than two hours overtime without being notified on the previous day  clothing, equipment and tools allowance  Laundry allowance – motel employees  working late and working early travel allowance  fork lift driver allowance  first aid allowance

HIGA: LEAVE PROVISIONS  HIGA read in conjunction with NES  Annual Leave and annual leave loading 4 weeks annual leave for full time and pro rata for part time workers and does not apply to casuals. For the purpose of the additional week of leave provided for in the NES, a shiftworker is a seven day shiftworker who is regularly rostered to work on Sundays and Public Holidays in a business which shifts are continuously rostered 24horus a day for seven days a week. Payment of annual leave requires an additional leave loading of 17.5% of that payment. Note: that special leave provisions apply in respect of catering provided for boarding schools and colleges  Personal (sick and carers) Leave as per NES  Compassionate Leave  Parental Leave (Paid parental leave is not part of HIGA or the NES) For paid parental leave information please refer to the Australian Government Family Assistance Office  Community Service Leave (incorporating Jury Service)  Public holidays which are provided for in the NES  Further reference to the NES may be found in the NES fact sheets at

HIGA: Should I PAY A FLAT RATE OF PAY?  It has been the practice of the hospitality industry to engage employees (especially casual employees) on a flat hourly rate of pay, irrespective of hours/days worked.  An employee cannot be paid less than their minimum award entitlements under HIGA  Changes in employee roster patterns can significantly impact on a flat hourly rate of pay arrangement (refer to the examples on the next slide)  If you use a flat hourly rate of pay – please check to ensure that an employee is not being disadvantaged at all employment times.

HIGA: Should I PAY A FLAT RATE OF PAY? (example #1) FLAT HOURLY RATE CONSIDERATION #1  F&B2 Attendant Grade 2 (Level 2) – Casual Bar Person receives $20.04 per hour  Wednesday4pm-10pm5.5+3x$1.75=$  Friday4pm-10pm5.5+3x$1.75=$  Saturday4pm-10pm5.5=$  Sunday4pm-6pm2.0=$ hours$ average $22.67 per hour

HIGA: Should I PAY A FLAT RATE OF PAY? (example #2) FLAT HOURLY RATE CONSIDERATION #2  F&B2 Attendant Grade 2 (Level 2) – Casual Bar Person receives $20.04 per hour  Friday4pm-10pm5.5+3x$1.75=$  Saturday4pm-10pm5.5=$  Sunday4pm-10pm5.5=$ hours$ average $24.37 per hour

HIGA: COMPLIANCE  Fair Work Information Statement to new employees*  Flexible Working Arrangements  Record Keeping General employee records (7 years) Pay slips (compliance) Hours of work Leave records Superannuation contributions *A copy of the Fair Work Information Statement can be downloaded from the AHA website at or from

HIGA: TRANSITIONAL ARRANGEMENTS  Hospitality Employers in WA and SA may be subject to transitional arrangements for the phase in of new wage rates.  Schedule B of HIGA sets out the Western Australia transitional arrangements.  Schedule C of HIGA sets out the South Australia transitional arrangements  Please refer to the transitional arrangements pages on the AHA website as where transitional arrangements are fully explained and where the WA and SA state specific arrangements are provided in detail.

Shared Industry Assistance Project We trust that this presentation has been of benefit to you and your business Do you require further information? For more information Please complete the HIGA employer enquiry section of the AHA website at Fax your enquiry to John Sweetman, the AHA Fair Work Liaison Officer for SIAP on or Visit

Shared Industry Assistance Project Disclaimer: This presentation is intended provide an overview of the main elements of the Hospitality Industry (General) Award 2010 and the National Employment Standards. Information provided for general information purposes only and does not constitute legal advice. The Fair Work Ombudsman (FWO) is committed to providing useful, reliable information to help you understand your rights and obligations under workplace laws. The information contained in this publication is: general in nature and may not deal with all aspects of the law that are relevant to your specific situation; and not legal advice. Therefore, you may wish to seek independent professional advice to ensure all the factors relevant to your circumstances have been properly considered. This information was published on 5 March The FWO does not accept legal liability arising from or connected to the accuracy, reliability, currency or completeness of this information Whilst due care has been taken in preparing this booklet, no responsibility is accepted by the AHA National Office, the respective AHA state/territory branch offices or employees officers or contractors of the AHA and its branch offices for the accuracy of the information therein contained. All liability is expressly disclaimed for any damage which may arise from any person acting on any statement or information contained herein. Australian Hotels Association / Fair Work Ombudsman March 2011