Further to previous QHA communications, readers are reminded that 1 September is fast approaching.
This date is a key date for members who employ full-time or part-time employees per clause 24 in the Hospitality Industry (General) Award 2022 (‘HIGA’). This is because clause 24 will change, and the change is significant for employers.
A copy of the new clause, which will be in effect from 1 September 2022 can be viewed here.
What Does It Mean?
- For existing full time employees paid an annualised salary per clause 24, you will need to talk to them about pay arrangements moving forward, and reissue a new letter of appointment closer to 1 September 2022 to ensure that it is compliant with the requirements of the new clause;
- Part time employees will no longer be able to be employed on a part time basis per clause 24 from 1 September 2022. Those existing employees will need to be issued with a new employment contract for part time employment.
That is Because….
The Fair Work Commission, in reviewing clause 24 decided, in relation to the HIGA, that:
- The outer limit for overtime hours shall be an average 12 per week hours that are in excess of ordinary hours;
- The outer limit for penalty rate hours shall be an average of 18 per week;
As a result, the 25% loading that was traditionally paid to annualise an employee’s weekly wage into a salary is not necessarily going to be sufficient to cover the above; extra payments above the salary will be necessary in as payments in addition to the annualised wage.
This means that a salary (or annualised wage) per clause 24 will cannot compensate an employee for work performed outside of the outer limits.
How QHA Will Help?
The QHA’s Employment Relations team has prepared a detailed Kit; the Annualised Wage Arrangements Resources Kit, which is available at no cost to members.
The Kit contains Checklists, Fact Sheets and Templates that hospitality employers can use to assist with preparing them to be ready, a compliant, from 1 September 2022.
A new template Clause 24 Annualised Wages letter of appointment is available via the QHA’s HR Manual. This template is compliant with the new clause arrangements.
Members who do currently not subscribe to the HR Manual can obtain the template by purchasing the HR Manual for $300.00 (QHA member rate).
If you are still coming to terms with the changes, make sure you read the QHA’s Fact Sheet on clause 24 from 1 September 2022 before you do anything else. A copy can be downloaded here.
Clause 25 and Collective/Enterprise Agreements
Members are reminded that HIGA clause 25 will not be changing. The changes also do not impact annualisation clauses in existing Collective or Enterprise Agreements.
Further Information
QHA members seeking more information or wishing to discuss a specific employment relations matter are encouraged to contact the Employment Relations Department for a confidential discussion by calling 07 3221 6999 or emailing er@qha.org.au.
