Decide coverage before configuring payroll
clause 4, Schedule ACoverage requires both a covered hospitality industry and an appropriate Schedule A classification. The detailed exclusions can produce different results for businesses operating at similar premises.
- Identify the employer's substantive business activities and compare them with the hospitality industries listed in clause 4.2.
- Confirm that each employee has a classification defined in Schedule A.
- Apply the exclusions separately. They include incidental restaurant catering, specified restaurant awards, external contract services and the special aged care catering rule.
- Catering services provided by an aged care employer are excluded, except where the services are provided for or within an aged care facility by an employer otherwise covered by this award.
- Contract cleaning is excluded where it is undertaken by a company that does not operate exclusively in the hospitality industry. Contract security, gardening or maintenance is excluded where it is supplied by an external provider whose primary business falls outside the hospitality operation.
Record the correct employment type
clauses 8-11, clause 10.4, clause 10.13Employment type affects guaranteed hours, rostering, overtime and casual loading. The engagement records must match the arrangement being used.
- Tell the employee at engagement whether the employment is full-time, part-time or casual.
- A full-time employee is engaged to work an average of 38 ordinary hours each week.
- A part-time employee must have reasonably predictable hours and be engaged for at least 8 but fewer than 38 ordinary hours each week, or the equivalent average over a roster cycle.
- Record a part-time employee's guaranteed hours and availability in writing. Obtain written consent before changing guaranteed hours.
- A part-time employee must not be rostered outside their recorded availability and must have 2 days off each week.
Build rosters within the ordinary-hours rules
clause 15.1, clause 15.2The award permits several roster patterns, but daily limits, long-shift sequences, days off and split-shift spread must all be checked.
- Agree with each full-time employee on one of the permitted arrangements for averaging 38 ordinary hours each week.
- For a full-time employee, ordinary work on a day must generally be at least 6 hours and no more than 11.5 hours, excluding meal breaks.
- For a part-time employee, roster at least 3 and no more than 11.5 ordinary hours on a day, excluding meal breaks.
- An employee rostered for more than 10 ordinary hours on more than 3 consecutive days must receive a break of at least 48 hours after the last of those days.
- An employee may work more than 10 ordinary hours on no more than 8 days in a 4-week cycle. The maximum spread for split shifts is 12 hours.
Provide and track meal and rest breaks
clause 16Break entitlements change at specific shift lengths. The practical question is whether the employee was actually allowed to take each required break.
- For a shift of more than 5 and up to 6 hours, an unpaid meal break is elective and must be requested in writing no later than the start of the shift. The employer must not unreasonably refuse the request.
- For a shift of more than 6 hours, allow an unpaid meal break of at least 30 minutes after the first 2 hours and within the first 6 hours.
- Provide one paid 20-minute rest break for a shift of more than 8 and up to 10 hours. It may be divided into two 10-minute breaks.
- Provide two paid 20-minute rest breaks for a shift exceeding 10 hours.
- Make reasonable efforts to spread breaks evenly and apply the missed-meal-break premium when the required unpaid break is not allowed.
Classify employees and capture allowances
clause 18, clause 26, Schedule AClassification determines the starting rate. Qualifications, duties and all-purpose allowances can materially change the payroll calculation.
- Select the applicable general hospitality, casino gaming or Managerial Staff (Hotels) classification before applying the current minimum rate.
- An employee who has completed a relevant AQF Certificate III or higher qualification and uses knowledge and skills derived from relevant Certificate III competencies has a minimum classification of Level 4 under the rule accompanying the definition of appropriate level of training.
- Check allowances when duties or circumstances change, including forklift driving, employee-supplied tools or equipment, special clothing, vehicle use, first aid, split shifts, overnight stays and airport catering work.
- Check meal and transport entitlements when overtime is added without the required notice or ordinary transport is unavailable at an early start or late finish.
- The forklift driver allowance in clause 26.3 and airport catering supervisory allowance in clause 26.13 are all-purpose allowances. Where applicable, they form part of the rate used for penalties, overtime, loadings and annual leave payments.
Separate overtime from penalty-rate work
clause 28, clause 29Ordinary-hours penalties and overtime have different triggers. Payroll records should identify why each hour received its treatment.
- Pay overtime when a full-time employee works beyond ordinary hours and when a part-time or casual employee meets the applicable award trigger.
- For a part-time employee, overtime applies beyond 38 hours per week or the roster-cycle average, beyond the applicable daily maximum, or beyond the employee's rostered hours.
- Treat overtime worked on each day separately. A full-time or part-time employee required to work overtime on a rostered or accrued day off ordinarily receives a minimum payment of 4 hours, subject to the stated exceptions.
- For ordinary hours not paid as overtime, distinguish weekday evening or night work, Saturday, Sunday and public holiday work.
- Where more than one penalty rate would otherwise apply, pay the highest applicable penalty rather than adding the penalties. A missed-break premium remains payable in addition where applicable.
Check the NES and workplace instruments
clause 5, clause 6, clause 28.1The award operates with the NES and any applicable workplace instrument. Informal payroll practices cannot replace the required legal processes.
- Do not require overtime without considering whether the additional hours are reasonable under clause 28.1 and section 62 of the Fair Work Act.
- Deal with requests for flexible working arrangements under the NES.
- Use an individual flexibility arrangement only for the award terms listed in clause 5 and only when every consent, content, signature, recordkeeping and better-off-overall requirement is met.
- Keep the signed arrangement as a time and wages record and give the employee a copy.
- The coverage exclusion refers specifically to modern enterprise awards and enterprise instruments. Check any enterprise agreement or other workplace instrument separately.