Know Your Award 2020

On Thursday 30 July 2020, the AHA|SA held a Zoom information session on the Hospitality Industry (General) Award 2020 (‘HIGA’).

The session focussed on the changes that have occurred to the HIGA so far in 2020 and their impact upon Members, as well as providing participants with an understanding of the key clauses of the HIGA inclcuding employee classifications, pay rates and salaries, penalty rates, overtime and loadings, meal break obligations, and leave entitlements.

In this article we look at some of the key areas that arose from the session.       

What changes have occurred to the HIGA in 2020?

4 Year Modern Award Review – Substantive Issues Matter

The first changes that the HIGA saw in 2020 was in January when the Award was varied to reflect the changes from the 4-yearly review of Modern Awards substantive issues matter (AM2017/59) in the Fair Work Commission (‘FWC’).

The more significant changes included:

• The introduction of a competency-based wage progression for apprentices;
• Changes to the time off in lieu arrangements for employees under the Salaries Absorption (Managerial Staff (Hotels)) classification when working on a public holiday;
• Greater clarity on the minimum hours of work arrangements for public holidays;
• Reclassification of the “taking reservations, greeting and seating guests: duties from a Food & Beverage Level 3 to a Food and Beverage Level 2

4 Year Modern Award Review - Plain Language Re-drafting

The next big changes to occur to the HIGA occurred in May 2020 as a result of the FWC handing down their final determination in the plain language re-drafting process.

The HIGA was renamed as the Hospitality Industry (General) Award 2020 and was redrafted to reflect plain English language guidelines and included a range of new pay rate tables and examples to assist employers and employees understand the various Award clauses.

Schedule J & Schedule X

As a result of the impact from the COVID-19 Pandemic, the HIGA was also varied to include two new Schedules – Schedule J & Schedule X.

Schedule J – Award Flexibility During the COVID-19 Pandemic was initially introduced into the HIGA in March 2020 as a temporary schedule and has now been extended to operate through to 27 September 2020.

Schedule J was inserted into the HIGA to implement flexibilities in response to the unique circumstances created from the COVID-19 Pandemic. The Schedule enables employers to be able to direct full-time and part-time employees, in certain circumstances, to work reduced ordinary hours and provided employers with more flexibility in requesting employees to take annual leave.

Schedule X – Additional Measures During the COVID 19 Pandemic, was a new schedule introduced in April 2020 that operates through to 30 September 2020 to assist employers and employees to deal with situations where an employee is required to self-isolate or quarantine through the provision of unpaid pandemic leave.

What are the minimum number of ordinary hours that a full-time, part-time and casual can work on any day?

The minimum number of ordinary hours that a full-time employee can work under the HIGA on any day is 6 hours. For a part-time employee the minimum number of ordinary hours is 3 hours and for a casual employee they must be engaged and paid for at least 2 consecutive hours of work on each occasion they are required to attend work.

Can a casual employee elect to become full-time or part-time after 12 months service?

A regular casual employee who has been engaged by an employer for at least 12 months can elect to be converted to a full-time employee, subject to a number of provisions of clause 11.7 of the HIGA, provided they have worked at the rate of an average of 38 hours or more per week in the period of 12 months casual employment.

A regular casual employee who has been engaged by an employer for at least 12 months can elect to be converted to a part-time employee, subject to a number of provisions of clause 11.7 of the HIGA, provided they have worked at the rate of an average of less than 38 hours per week in the period of 12 months casual employment.

Where a casual employee seeks to convert to full-time or part-time employment, the employer may consent to or refuse the election, but only on reasonable business grounds.

When does overtime apply for a casual?

Under the HIGA a casual employee must be paid overtime for any hours worked in excess of:

• 12 hours per day or per shift; or
• 38 hours per week or, if the casual employee works in accordance with a roster, an average of 38 hours per week over the roster cycle (which may not exceed 4 weeks)

What rate applies to overtime?

For full-time, part-time and casual employees under the HIGA the following overtime rates apply:

What penalty rates apply under the HIGA?

The following penalty rates apply under the HIGA:

What is the difference between an annualised salary arrangement and the Managerial staff salary absorption arrangement in the HIGA?

The annualised salary arrangement provisions under clause 24 of the HIGA apply to all employees other than casuals and employees within the Managerial Staff (Hotels) classification level as defined by Schedule A.2.9.

An individual employee may agree with their employer to be paid an annualised salary. The annualised salary must be at least 125% of the minimum weekly rate that would otherwise be applicable over the year. For example, the current minimum salary for a food and beverage level 3 classification would be $818.50 + 25% x 52 = $53,202.50 gross p.a.

An annualised salary must not result in an employee being paid less over a year (or, if the employee’s employment is terminated before a year is completed, over the period of that employment) than would have been the case if an annualised salary had not been agreed and the employee had instead been paid their weekly rate and any other amounts satisfied by the annualised salary.

The Managerial staff salary absorption arrangement under clause 25 of the HIGA applies to those employees who are defined under the Managerial Staff (Hotels) Classification of Schedule A.2.9 of the HIGA.

Schedule A.2.9 of the HIGA refers to an employee that fits into this particular classification as being an employee who:

• Under the direction of senior management is required to manage and co-ordinate the activities of a relevant area or areas of the hotel; and
• Directs staff to ensure they carry out their duties in the relevant area or areas of the hotel; and
• Implements policies, procedures and operating systems for the hotel; and
• Has completed an appropriate level of training in business management or has relevant experience, including in supervising employees in one or more areas of a hotel

The minimum salary at present for an employee paid in accordance with clause 25 of the HIGA is $61,281.00 gross p.a.

Employees paid under the Managerial staff salary absorption arrangement under clause 25 of the HIGA are not entitled to the benefit of the terms and conditions within the following clauses:

Clause 10 – Part-time employment, Clause 15 – Ordinary hours of work and rostering arrangements, Clause 16 – Breaks, Clause 26 – Allowances, Clause 28 – Overtime, Clause 29 – Penalty Rates, Clause 30.3 – Payment for annual leave loading, Clause 35.3 – Additional public holiday arrangements for full-time employees, Clause 37 – Deductions for provision of employee accommodation and meals.

What breaks are applicable to employees when working on shift?

For full-time, part-time and casual employees under the HIGA, the following breaks apply in accordance with clause 16 of the HIGA:

What happens when a full-time employee’s rostered day off (RDO) coincides with a public holiday?

When a full-time employee’s RDO coincides with a public holiday under the HIGA, the full-time employee will be entitled to one of the following in accordance with clause 35.3:

• An extra day’s pay; or
• An alternative day off within 28 days; or
• An additional day’s annual leave

A full-time employee paid in accordance with the salary absorption managerial staff provisions (clause 25) of the HIGA is not entitled to any of the benefits of clause 35.3 if their RDO coincides with a public holiday.

How much notice does an employee employed under the HIGA need to provide to their employer if they resign?

A full-time or part-time employee employed under the HIGA will need to provide the following amount of notice:

If the employee is required under a term of their contract of employment to provide an even greater notice period than the table above, they will need to provide notice in accordance with the terms of that contract.  

Is annual leave loading required to be paid to all full-time and part-time employees under the HIGA?

Yes, leave loading is applicable on all accrued annual leave apart from those employees who are paid in accordance with clause 25 – managerial staff salary absorption provisions.

Leave loading of 17.5% is required to be paid when an employee takes annual leave and also when they are being paid out accrued outstanding annual leave on termination of employment.

Where can I view the recording of the Zoom information session?

You can access a recording of the session via the following link and password.

Meeting Recording:

https://us02web.zoom.us/rec/share/y8Z2Ee3P0ENIRaP30XvyQZBwTqLIeaa8gHJN8vBZnR3viOniHmUoDkNhz0eUIiyZ

Access Password: AHA-300720

You can access a copy of the presentation slides here.