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Members are reminded that the Fair Work Commission has varied the annualised salary provisions contained under the Hospitality Industry (General) Award 2020 (HIGA) and Restaurant Industry Award 2020 (RIA). The variations are effective from the first full pay period that starts on or after 1 September 2022.

The changes to the HIGA relate to non-managerial employees under clause 24. No changes have been made to clause 25 of the HIGA – Salaries Absorption (Managerial Staff (Hotels)).

Changes to Clause 24 of the HIGA include:

  • The requirement for the separate payment to employees, in addition to the amount of annualised salary paid, when “outer limits” of penalty rates and overtime are exceeded in a particular pay period.
  • Requiring employers to conduct a reconciliation every 12 months or upon termination of employment, calculating the difference between what the employee would have earned in separate entitlements compared to salary paid, with any shortfall being back paid within 14 days.
  • Requiring annualised salary agreements to specify certain details, including the amount of annualised wage, the award entitlements that the salary includes, and the outer limits that apply.
  • Require additional records to be maintained.
  • No longer require time in lieu for time worked on public holidays to be provided.

There is a new section in the Members area of the AHA|SA Website entitled Annualised Salary Changes under the Workplace Relations Tab where you will find resources available. This includes:

  • A fact sheet on the changes
  • A template letter for existing staff under annualised salary arrangements
  • A new template contract of employment for new annualised salary staff post 1 September 2022
  • the recording of the Zoom session and presentation slides conducted on 11 August 2022  
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