Pubs and hotels have been granted powers to put senior permanent staff onto one single higher rate, without complex penalty rates, in a move expected to make the system simpler for smaller operators.
Following an industry proposal to introduce so-called “loaded rates”, pubs can now pay key full-time staff award wages at a higher rate, instead of having to pay penalty rates such as weekend loading.
The scheme applies to level three and above full-time workers, and includes five rate tiers, from 10.2 to 31.5 per cent above the award, depending on days and hours worked by the employee.
It does not replace penalty rates paid on public holidays, or for overtime and split shifts, which are still required.
A decision was issued by the full bench of the Fair Work Commission, led by president Iain Ross, in response to the Australian Hotels Association’s (AHA) proposal. The AHA notes that the Hospitality Award system is notoriously complex and finds a single loaded rates system will help make it simpler for businesses.
Unions criticised the proposal, suggesting workers would be worse off, but the FWC disagreed, reporting it was satisfied employees would be the same or even better off under the plan.
“Contrary to the submissions advanced by the ACTU and UWU we are satisfied that the quantum of loaded rates and the loaded rate parameters ensure that workers on loaded rates arrangements are paid the same or more than they would have been paid if the loaded rate did not apply.”
The changes came into effect Friday (3 September), but require employers discuss such an arrangement with employees at least seven days prior to implementation. The FWC has the discretion to terminate arrangements that have not complied.
The AHA welcomes the decision, offering the initiative will be pivotal in preventing unintended breaches of workplace laws, helping operators spend more time running their venues and “less time pushing paper”, which will directly assist with job creation.
“The overwhelming majority of hospitality employers do the right thing, but not all businesses have the resources to employ dedicated workplace relations teams,” says AHA CEO Stephen Ferguson.
“The 65 per cent of Australian hotels that are family-owned and operated are the biggest beneficiaries from loaded rates, as they won’t have to spend days labouring over complex pay rates to ensure they are compliant.
“We thank the Federal Government for initiating the process that led to this outcome – an important practical measure that will benefit both employers and employees.”
