This article provides guidelines about when to use the different work types and tags that are included as part of the pre-built Hospitality Industry award package. For further information about the hospitality industry award, refer http://www.fwc.gov.au/documents/modern_awards/award/ma000009/default.htm
Update to Casual Higher Duties pay condition rule and Higher Duties (Junior Serving/Selling Alcohol) Employment Agreement Ranks.
Allowance rate update for Kilometre Allowance - Car (above and below ATO limit). Further information can be found at ATO.
1 August 2018
The award has been updated to reflect changes made as part of the Fair Work Decision 4 year review of modern awards. The determination for the new clause in the modern award allowing employees to take unpaid leave to deal with family and domestic violence can be found here. Family and Domestic Violence leave applies from the first full pay period on or after 1 August 2018. Further information can be found at Fair Work.
Employees, including part-time and casual employees are entitled to 5 days unpaid family and domestic violence leave each year of their employment. The 5 days renews each 12 months of their employment but does not accumulate if the leave is not used.
A new leave category has been created - “Family and Domestic Violence Leave” and a new Work Type - “Family and Domestic Violence Leave taken”. The Leave Allowance Templates and any impacted rule conditions have also been updated.
PAY RATE TEMPLATE update for Hospitality Casual L3 20yrs & over rounding $0.01.
28 June 2018
The Award has been updated to reflect the Fair Work Commission’s national minimum wage increase of 3.5% from its Annual Wage Review 2017-18 decision. This also includes updates to expense-related allowances.
These changes come into effect from the first full pay period on or after 1 July 2018. Please install these updates AFTER you have finalised your last pay run prior to the first full pay period commencing on or after 1 July 2018.
Additionally, the following changes have been made as part of this update:
- New laundry allowance pay categories and rule conditions were created to reflect the ATO threshold maximum limits for claiming of laundry (not dry cleaning) for deductible clothing under the Award. Further information can be found in the “Cleaning of Work Clothing” section of this ATO article.
- The Sunday penalty for permanent employees has reduced from 70% to 60%.
- The Payment Summary Classification settings for Allowance based pay categories have been updated as per STP requirements.
23 March 2018
A change was made in line with Fair Work advice to reflect late shift penalties and early morning penalties (which we apply as an allowance on top of the employees base wage) should not be cumulative with other penalties. i.e. If overtime or public holidays are applied to these times, the late shift penalty or early morning penalty will not apply.
6 February 2018
We have included a new rule in the Permanent Hospitality pay condition rule set to cover the provisions of clause 32.2(b) of the Award. This relates to permanent employees agreeing to be paid a 25% penalty when working on a public holiday and also accruing the equivalent time of annual leave for each hour worked. This rule is activated when an employee has been assigned the tag "Accrue AL on PH worked".
5 February 2018
The following changes are a result of a general award overview and incorporate new enhancements made to pay conditions rules:
- The automated meal break rule now is automatically excluded from timesheets created from a leave request. Additionally, the rule will search any manual break recorded before automatically applying a meal break;
- Users can choose to have the 38 hour week averaged over a 1, 2, 3 or 4 week period for casual and part time employees. This setting can be adjusted via the Rule Set Period setting:
- Created a shift condition for Tool Allowance, as detailed further below;
- The name of the existing Vehicle Allowance pay category has been amended to Vehicle Allowance (within ATO limit) with a unit rate of $0.66;
- A new pay category called Vehicle Allowance (above ATO limit) with a unit rate of $0.12 has been created. This is a taxable pay category and will be paid in addition to the Vehicle Allowance (within ATO limit) pay category. The purpose of separating the pay categories is to ensure the PAYG is calculated in accordance with ATO requirements;
- The pay category Overtime Meal Allowance has been amended so that it is excluded from the payment summary;
- A new pay category Forklift Driver (All Purpose Allowance) has been created specifically for full time employees as this allowance is an all purpose allowance and should be added to the minimum rate before penalties and overtime are calculated;
- Created rules for the Airport Catering Supervisory Allowance in accordance with clause 21.2(c) of the Award. Employees will need to be assigned the relevant tag for the rules to be activated and all purpose allowance paid, as detailed further below;
- Adjusted the first aid allowance rules for part time and casual employees so they were being paid on a per day basis as opposed to a per week basis.
- Added a new tag "Tool Allowance" to automate the payment of the tool allowance and thereby removing the need for employees to select the work type against each timesheet;
- Added new rules to cover the Overnight Stay provisions as per clause 21.3(b) of the Award;
- Added a rule for part time employees to be paid overtime if they work on their rostered day off, in accordance with clause 33.3(b) of the Award;
- Added a rule for permanent employees to be paid overtime if broken shifts are worked and the spread of hours are greater than 12 hours per day. Refer to clauses 33.2(a) and 33.2(b) of the Award.
- "Added new rules to Created new tag "5/7.6" to be assigned to employees whose 38 hours week is made up of 5 days at 7.6 hours each day. Otherwise employees will be paid overtime after working in excess of 38 hours per week;
- Award clause numbers have now been added to the title of the relevant rule set. This makes it easier to correlate the interpretation with the specific Award clauses;
- Tags descriptions have been added.
1 January 2018
The award has been updated to reflect changes made as part of the Fair Work Decision 4 year review of modern awards.
The changes are a replacement of Clause 13 - Overtime to include overtime paid for casuals. This now provides for casual staff to be paid overtime in excess of the following:
- For a maximum of 38 hours per week or, where 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)
- 12 hours in one day
NB: We have applied the rule using 152 hours worked over a 4 week period to remain consistent with the rule set for permanent staff.
Implicitly, this also means overtime can be converted to TIL by using the 'Time off in lieu of Overtime' employee tag, and this has also been reflected in the rules.
These changes are reflected in the "Casual Hospitality" rule set. We've also automatically enabled the work types relating to meal allowances for casual staff. To be paid a meal allowance, the 'Overtime Meal Allowance' needs to be selected on a separate line of the timesheet and a unit of 1 recorded.
These changes have also meant a set of new pay categories for casual overtime and the pay rate templates for casual employees have been updated.
Part time employees
Clause 12 has been updated for part time employees, and mandates the idea of 'guaranteed hours' reflected as the employee standard hours in KeyPay, and the 'employees availability'. We have interpreted the employees availability as only affecting the hours available to roster the part time employee (use 'unavailability' in rostering to achieve this), so no changes are reflected in the pay condition rule set.
The new changes do mean that an employee can work hours in excess of their guaranteed hours and not attract overtime, until they've worked in excess of 38 hours or an average of 38 hours per roster cycle.
This means we've removed the 'overtime in excess of standard hours' and replaced this with 'overtime in excess of 152 hours over 4 weeks'.
These changes have been reflected in the 'Permanent Hospitality' rule set.
Please note that the changes come into effect on the first full pay period on or after 1 January 2018. This means that you should only install these updates once you've completed the last pay period that pays shifts worked during December 2017.
"We have referred to clause 32.3(a), which states: 'Monday–Friday—7.00 pm to midnight: 10% of the standard hourly rate per hour or any part of an hour for such time worked within the said hours ...' It is the Fair Work Ombudsman's view that if an employee works part of an hour between 7pm and midnight Mondays to Fridays, they are entitled to be paid the full 10% penalty for that part hour, not a percentage for how much of the hour they worked. We consulted with stakeholders in 2013 to establish this view, including the Australian Hotels Association. We note that divisions of the AHA at that time held differing views - some divisions also held this view and other divisions did not. The actual definition of how it is to be paid can only be determined by a judge. If a Court or tribunal were asked to consider this issue, they may come to a different conclusion to the Fair Work Ombudsman's. To avoid doubt, we recommend paying the full 10% penalty rate."
Installing and Configuring the Pre-Built Award Package
For details on how to install and configure this Pre-built Award Template, please review the detailed help article here.
8 hr break between shifts
Choose this work type in the case where there is a changeover of rosters and there was only 8 hours break between shifts. Refer section 30.1(b) of the Hospitality Industry award.
First Aid Officer
Choose this work type if the employee is the holder of a current recognised first aid qualification and is appointed by the employer to perform first aid duty.
When requested to stay on the employer’s premises for the purpose of providing prompt assistance to guests outside of ordinary business operating hours, choose this work type and enter a unit amount of 1.
Work during overnight stay
Choose this work type when required to perform work in excess of 1 hour during an overnight stay period. Refer to clause 21.3(b)(iii) of the Award.
Overtime Meal Allowance
When required to work overtime for more than 2 hours without being notified on the previous day or earlier, choose this work type and enter a unit amount of 1.
Public Holiday not worked
Choose this work type where employees are not required to work on a gazetted public holiday.
Rostered Day Off Worked
Choose this work type when an employee is required to work on their rostered day off. Refer section 33.3(a)(iii) of the Hospitality Industry Award.
Where required to use their own tools, a cook should choose this work type and enter a unit amount of 1.
Managerial staff who are required to use their own vehicle should choose this work type and enter the kilometres travelled in the 'units' field.
Choose this work type when annual leave was taken
Choose this work type when carer’s leave was taken
Choose this work type when compassionate leave was taken
Long Service Leave
Choose this work type when long service leave was taken
Choose this work type when sick leave was taken
Choose this work type when unpaid leave was taken
Cooks required to use their own tools should add this shift condition against their timesheet to automate the payment of the tool allowance, in accordance with clause 21.1(b)(i) of the Award.
The following tags are available for application to employees under the Hospitality Industry (General) Award.
7 day shiftworker
Assign this tag if the employee is employed as a shift worker who is regularly rostered to work on Sundays and public holidays. As per the national employment standards, a 7 day shiftworker is entitled to an extra 1 week of annual leave per year. Refer section 34.1 of the Award.
Accrue AL on PH worked
Assign this tag to any permanent employees who agree to work on a public holiday and be paid an additional 25% penalty as opposed to a 225% penalty. Additionally, these employees will accrue the equivalent time worked on the public holiday as annual leave. Refer to clause 32.2(b) of the Award.
Airport Catering Supervisor (20+ employees)
Assign this tag to an airport catering employee required to supervise more than 20 employees. Refer to clause 21.2(c) of the Award.
Airport Catering Supervisor (11-20 employees)
Assign this tag to an airport catering employee required to supervise up to 20 employees. Refer to clause 21.2(c) of the Award.
Airport Catering Supervisor (6-10 employees)
Assign this tag to an airport catering employee required to supervise up to 10 employees. Refer to clause 21.2(c) of the Award.
Airport Catering Supervisor (up to 5 employees)
Assign this tag to an airport catering employee required to supervise up to 5 employees. Refer to clause 21.2(c) of the Award.
First Aid Officer
Assign this tag if the employee has an appropriate first aid qualification and will be the designated ongoing first aid officer during every shift they are rostered to work.
Food & Beverage Attendant Grade 2
Assign this tag if the employee has the Food and Beverage Attendant grade 2 classification. Such employees are exempt from being paid higher duties in accordance with section 25.1 of the Hospitality Industry award.
Food & Beverage Attendant Grade 3
Assign this tag if the employee has the Food and Beverage Attendant grade 3 classification. Such employees are exempt from being paid higher duties in accordance with section 25.1 of the Hospitality Industry award.
Assign this tag if the employee has a recognised fork-lift license and is engaged solely on the basis of driving a fork-lift vehicle. Refer section 21.2(a) of the Hospitality Industry Award.
4/8 - 1/6
Assign this tag to a full time employee whose 38 hour week are based on 4 days at 8 hours and 1 day at 6 hours rather than the default overtime arrangements which are based on hours over 11.5 in a day and hours over 152 in a 4 week period.