
2022 Annual Wage Arrangement for Hospitality Workers
SEPTEMBER 13,2022 | BUSINESS , MANAGEMENT | READING TIME: 5 MINUTES
SEPTEMBER 13,2022 | BUSINESS , MANAGEMENT | READING TIME: 5 MINUTES
The following awards' annualised wage arrangements in Australia are changing from 1 September 2022:
These terms are perhaps more well known as annualised wages. For additional details, continue reading.
Following a ruling by the Fair Work Commission, there are new annualised wage arrangement regulations in the Hospitality and Restaurant Award as of 1 September 2022. The clauses in these awards replace the terms of the prior annualised pay arrangement provisions.
Key modifications include:
These modifications:
If you are exempt from these changes, check the general information on Annualised pay.
Even though the employees' hours vary, annualised wage arrangements allow employers to pay their employees fixed, recurring monthly amounts as specified. This system differs from employment contracts that require companies to pay employees a yearly wage.
For employees to get the benefits of an annualised wage arrangement, there are regulations governing how to determine and formalise it, including the minimum rate employers must provide.
By reading further down in this article, find out more about how to create and manage annualised compensation arrangements under the Restaurant Award or Hospitality Award.
An annualised wage agreement may include the following payments under the Restaurant Award:
There is no need to calculate and pay for these benefits for each pay period when an annualised wage agreement includes payment for any of these benefits.
Additional compensation
An annual wage, in any roster cycle, can only cover an employee working on an average of (weekly):
These are referred to as the 'outside limits.' A worker may occasionally put in more time than these hours throughout a roster cycle.
The yearly salary does not cover these additional hours. Instead, an employer must compensate the employee for these extra hours at their minimum hourly rate, plus any overtime or penalty rates.
Other benefits that are not included in the yearly pay must also be paid separately.
According to the Hospitality Award, an annualised wage agreement may cover the following payments:
Calculating and paying for these benefits for each pay period is unnecessary when an annualised wage agreement includes payment for any of these benefits.
Additional compensation
An annual wage, in any roster cycle, can only cover an employee working on an average of (weekly):
These are referred to as the 'outside limits.' Over the course of a roster cycle, a worker may occasionally put in more time than these hours.
The yearly salary does not cover these additional hours. Instead, an employer must compensate the employee for these extra hours at their minimum hourly rate, plus any overtime or penalty rates.
Other benefits that are not included in the yearly pay must also be paid separately.
This means that employers must pay their employees during each pay period:
Best tip:
Employers should determine an annualised salary that will cover what their employees are entitled to be paid under their award. This should be over the annual course and by considering their employees' work patterns and other factors.
More stringent record-keeping standards are now part of the Restaurant Award and the Hospitality Award. Employers who pay their employees an annualised wage must abide by these new regulations.
Under the Fair Work Act, employers must adhere to additional record-keeping and pay slip requirements.
Putting everything together:
An annualised salary agreement requires the employee and the employer to sign it in writing. Employers must, at the very least, need to:
The annualised pay arrangement must contain the following:
During the roster period
Employers are required to document the employees':
At the end of a roster cycle or pay period, the employee must:
Employers must evaluate and reconcile annualised wage arrangements:
This is done to ensure that employees receive at least the minimum payment to which they are entitled to the year's worth of labour.
An annualised pay arrangement may sometimes result in an employee being paid less than what they are entitled to for their job under the award. If an employer hasn't paid an employee over the year, they should pay the shortfall within 14 days of finishing the reconciliation.
Helpful tip:
Employers should examine their records often throughout the year. This will help in:
Employees and employers can discontinue an annualised wage agreement under the new rules:
Employees with annualised compensation agreements can submit timesheets using RosterElf to track their working hours, including unpaid breaks. RosterElf preserves a permanent digital record of the hours worked after this data has been collected. RosterElf may also remind employees to turn in timesheets, ensuring that you never go without an audit record.
RosterElf provides a number of features to help you control and manage how many hours your employees work and when. Fair Work advises taking into account your employee's work schedules when calculating annualised wage rates; this can be done with ease using RosterElf's rostering platform.
Staff set the times and days they can work, and RosterElf does the rest. Our software then automatically suggests available employees fill shifts.
To get a clearer view of how our app works, enjoy 30-day access to our tool for free.
RosterElf is built with you in mind. Our online staff scheduling tool handles all your employee scheduling needs.
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