The hospitality industry in Australia involves many different industries and provides jobs for almost half a million employees across the country. This Legal Kitz article will cover essential information needed to understand the Hospitality Award so that you, your business and your employees can thrive in 2023.
What is an employment award?
In Australia, an “award” in the context of employment refers to a legally binding document that sets out minimum wages and working conditions for a particular industry or occupation. Awards are created and reviewed by the Fair Work Commission, which is the national workplace relations tribunal. Awards cover a wide range of issues such as minimum wages, working hours, overtime rates, leave entitlements, and other conditions of employment. They apply to all employees in the relevant industry or occupation, regardless of whether they are full-time, part-time, or casual workers. Awards are designed to ensure that employees are paid fairly and receive adequate working conditions, and they form a safety net of minimum standards that cannot be undercut by individual employment contracts.
What is the Hospitality Award and who does it cover?
The “Hospitality Award” refers to the Hospitality Industry (General) Award 2020, which is a legal document setting out minimum employment conditions for workers in the hospitality industry in Australia. This award covers a wide range of employees in the hospitality sector, including full-time, part-time and casual workers in roles such as chefs, kitchen hands, waiters, bartenders, and housekeeping staff. The award is updated periodically to reflect changes in the industry and ensure that workers are paid fairly and receive adequate working conditions.
Hospitality Award Rate Guide
The Hospitality Industry (General) Award 2020 sets out minimum pay rates for employees in the hospitality industry in Australia. The specific pay rates vary depending on the type of work performed, the employee’s classification level, and the number of hours worked.
The following are some of the key pay rates specified under the award:
- Minimum hourly rate: The award sets out a minimum hourly rate of pay that must be paid to employees, depending on their classification level. This ranges from $19.84 for a Level 1 employee to $27.78 for a Level 5 employee.
- Casual loading: Casual employees are entitled to a 25% loading on top of their minimum hourly rate to compensate them for the lack of certain entitlements such as paid leave.
- Penalty rates: The award sets out penalty rates for employees who work weekends, public holidays, or outside of normal working hours. Penalty rates can range from 150% to 200% of an employee’s normal hourly rate.
- Overtime rates: The award sets out the minimum pay rate for overtime work, which is time worked outside of an employee’s ordinary hours of work. The overtime rate is time and a half for the first three hours and double time thereafter.
The provisions outlined above are the minimum pay rates required under this award, employers may choose to provide their employees with better conditions if they so wish. It is also important to check the award regularly for any changes as it is reviewed by the FWC periodically.
Leave entitlements afforded under the Hospitality Award
The Hospitality Award outlines leave entitlements that employers must grant their employees, these include:
- Annual Leave: Full-time and part-time employees are entitled to four weeks of paid annual leave per year of service. Casual employees do not accrue annual leave.
- Personal/Carer’s Leave: Full-time and part-time employees are entitled to 10 days of paid personal/carer’s leave per year, which can be used for personal illness or injury, or to care for a family member who is sick or injured. Casual employees do not accrue personal/carer’s leave.
- Public Holidays: Full-time, part-time, and casual employees are entitled to be paid for working on a public holiday, or to receive a day off in lieu if they are not required to work on the public holiday.
- Long Service Leave: Full-time and part-time employees are entitled to long service leave after working for their employer for 10 years or more. The amount of long service leave varies depending on the length of service, but it is generally equivalent to 13 weeks of leave.
As with award provisions relating to hourly rates, these are the minimum requirements for employees working in hospitality meaning employers may choose to provide their staff with better leave conditions if they choose.
Legal advice
If an employer fails to comply with the Hospitality Industry (General) Award 2020 by not granting their employees sufficient pay or leave entitlements, they can face civil claims, penalties, criminal charges and a disrupted workplace environment. It is important for employers involved in the hospitality industry to abide by every provision outlined in this award. If you as an employer or employee are not confident about your rights/obligations in relation to the Hospitality Award, contact Legal Kitz by phone at 1300 988 954 or email [email protected] for more information and advice. We offer a FREE 30-minute consultation for all your legal needs.