Hair & Beauty Industry Award 2020: A Complete Jargon-Free Guide

Non-compliance with the Hair & Beauty Industry Award can result in penalties of up to $18,780 per contravention for individuals and $93,900 for companies.

The Fair Work Ombudsman actively monitors businesses in the hair and beauty sector, with investigations often triggered through employee complaints or random audits.

Understanding and implementing the correct award entitlements safeguards your business from these substantial fines and maintains positive workplace relations.

And if you download our eBook, you’ll get access to a BONUS checklist, classification tables and more.

Disclaimer:
Please note that every effort has been made to ensure that the information provided in this guide is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal or tax advice. You should, where necessary, seek a second professional opinion for any legal or tax issues raised in your business affairs.

This award encompasses a broad range of services and activities:

Core Services

The award covers businesses providing:

• Hair services, including cutting, styling, colouring, and treatments
• Beard trimming and shaving
• Wig-making services
• Make-up application
• Manicures, pedicures, and nail enhancements
• Facial treatments and specialised massages
• Body treatments and massage
• Aromatherapy services
• Hair removal services, including waxing, electrolysis, and laser treatments
  
  

Who's Covered

The award applies to:

• Hair and beauty salons
• Hairdressers and apprentices
• Barbers
• Beauty therapists
• Make-up artists
• Nail technicians
• Spray tan technicians
• Labour hire businesses and their employees working in the industry
  
  

Exclusions

The award does not apply to:

• Hairdressers working in retail, theatrical, or entertainment industries
• Stand-alone self-service spray tanning studios
• Solariums
• Tattoo artists and parlours

Geographic coverage extends throughout Australia, and the award operates alongside the National Employment Standards (NES).

When businesses operate across multiple awards, employees must be classified under the award most appropriate to their primary duties and work environment.

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Full-time Employment

Full-time employees work an average of 38 hours per week. These hours can be worked in various arrangements:

• 38 hours within a work cycle not exceeding seven consecutive days
• 76 hours within a work cycle not exceeding 14 consecutive days
• 114 hours within a work cycle not exceeding 21 consecutive days
• 152 hours within a work cycle not exceeding 28 consecutive days

Part-time Employment

Part-time employees have regular, predictable hours of work. Their employment must meet these conditions:

• Work fewer than 38 hours per week
• Have reasonably predictable hours of work
• Receive a written agreement stating:
   
  • The number of hours they will work each week
  • Days of the week, they will work
  • Start and finish times each day

Changes to this arrangement must be documented in writing. Part-time employees receive the same 

entitlements as full-time employees on a pro-rata basis.

Casual Employment

Casual employees work on an as-needed basis and receive a 25% loading on their base rate to compensate for:

• No paid annual leave
• No paid personal/carer's leave
• No notice of termination
• No redundancy benefits

A casual employee must receive a minimum of 3 hours' payment per shift.

For example, if a casual Level 2 hairdresser is called in for a quiet Tuesday morning and only works for 1.5 hours before being sent home due to a lack of clients, they must still be paid for 3 hours at their casual rate.

At the current rate of $26.24 per hour plus 25% casual loading ($32.80), they would need to be paid $98.40 for the shift, not the $49.20 they would receive for just the hours worked.

Casual Employment Changes

From August 27, 2024, casual employees have new pathways to convert to permanent employment under the National Employment Standards. Here's what this means for employers and employees in the hair and beauty industry:

Casual Conversion Rights

Small business employers (less than 15 employees):

• Casual employees can request conversion after 12 months of employment
• The employee must have worked a regular pattern of hours for at least 6 months
• Employers can only refuse on reasonable business grounds

All other employers:

• Must assess casual employees after 12 months of employment
• Must offer conversion if the employee has worked a regular pattern of hours for 6 months
• Must provide the offer in writing

Reasonable Business Grounds

Employers can decline conversion requests if:

• The position won't exist in the next 12 months
• The hours of work would significantly change in the next 12 months
• The days or times of work would significantly change in the next 12 months

Process Requirements

When making or responding to conversion requests:

• All communications must be in writing
• Responses must be provided within 21 days
• Reasons for refusal must be outlined in detail
• Employers must consult with employees before refusing a request

This new framework provides clear pathways for casual employees seeking more secure employment while maintaining flexibility for business operations. Small businesses should implement systems to track casual employment durations and work patterns to manage these obligations effectively.

Standard Hours

The ordinary hours of work are:

• Maximum of 38 hours per week
• Maximum of 10 hours per day
• Worked between 7:00 am and 9:00 pm Monday to Friday
• Worked between 7:00 am and 6:00 pm on Saturday

Right to Disconnect

Starting August 26, 2024 (August 26, 2025, for small businesses), the Hair & Beauty Industry Award includes new provisions protecting employees from after-hours contact.

Under these provisions, employees can:

• Ignore work-related calls, texts, and emails outside their scheduled hours
• Decline to perform work duties beyond their regular hours
• Switch off from work communications during annual leave
• Refuse to be on call unless they receive appropriate compensation

Contact outside work hours may be considered reasonable in situations such as:

• Emergency salon closures
• Critical client appointment changes
• Workplace health and safety incidents
• Required legal or compliance communications
• Pre-arranged on-call arrangements with appropriate compensation

If disagreements arise about after-hours contact:

• The issue should first be addressed at the workplace level
• If unresolved, either party can seek assistance from the Fair Work Commission
• The Commission can issue stop orders or facilitate dispute resolution

The Fair Work Commission can impose penalties of up to $19,000 for individuals and $94,000 for businesses that breach these provisions. Employers should review their communication practices and establish clear protocols for after-hours contact to ensure compliance with these new requirements.

Rostering Requirements

Rosters must be:

• Posted in a visible location two weeks in advance
• Include start and finish times for each employee
• Not changed without 7 days' notice unless by mutual agreement

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Employees cannot work more than 5 hours without a meal break. All breaks are unpaid except for the 10-minute rest break.

Understanding these classifications helps ensure employees receive correct compensation for their work.

A Level 1 employee performs basic duties under direct supervision, typically including reception work, shampooing, removing chemicals, and basic customer service. These entry-level positions suit new staff learning the fundamentals of the industry.

Level 2 encompasses qualified hairdressers and beauty therapists who have completed their training. These professionals perform a range of technical services independently, from basic cuts and colours to beauty treatments and nail services.

Level 3 positions are reserved for senior staff members who demonstrate advanced technical skills and take on additional responsibilities. These employees often supervise others, manage complex client needs, and contribute to salon management.

For the most current pay rates for each classification, you can access the pay rate tables here.

For more information on the classification of hair and beauty employees, download our eBook here: CLICK.

Management and Responsibility Allowances

Location and Travel Allowances

Equipment and Clothing Allowances

Meal Allowances

The meal allowance system compensates employees who work extended hours with limited notice. This applies when employees work more than one hour of overtime and cannot reasonably return home for a meal.

These allowances ensure employees aren't financially disadvantaged by work-related expenses or additional responsibilities.

Search our database for all relevant allowances to your modern award.

Payment Requirements

Starting July 1, 2026, employers must pay superannuation at the same time as wages and salary rather than quarterly. This change aims to reduce the $5 billion annual unpaid superannuation problem and help employees benefit from more frequent compound interest.

Calculation Basics

Super must be paid on ordinary time earnings. This includes:

• Regular wages and salary
• Commissions
• Shift loadings
• Allowances
• Paid leave
  
  

Record Keeping

Employers must:

• Maintain accurate records of all super contributions
• Include super information on pay slips
• Report super payments through Single Touch Payroll
• Keep records for five years

Non-compliance with superannuation obligations can result in significant penalties, including the Superannuation Guarantee Charge, nominal interest, and administration fees.

Overtime rates apply when employees work:

• More than 38 hours in a week
• More than 10 hours in a day
• Outside the span of ordinary hours (7:00 am to 9:00 pm Monday to Friday, 7:00 am to 6:00 pm Saturday)
• During meal breaks

Overtime Payment Structure

Note: Time off instead of payment (TOIL) may be taken by agreement between the employer and employee. TOIL must be calculated at the overtime rate and taken within six months of accrual. 

For example, if a full-time hairdresser works 2 hours of overtime on a Wednesday evening and agrees to take TOIL instead of payment, they would receive 3 hours of time off (2 hours × 150% = 3 hours). This means if they worked from 6 pm to 8 pm, they could take a full morning off work another day, from 9 am to 12 pm, rather than just two hours.

Any untaken TOIL must be paid out at overtime rates.

These rates reflect the impact on work-life balance and social activities.

Standard Penalty Rates

Employees working on a public holiday must receive a minimum payment of four hours. Employers and employees may agree to substitute another day for a public holiday, with the agreement documented in writing.

When multiple penalties could apply to hours worked, the employee receives the higher rate only - penalties are not cumulative.

For example, if a full-time hairdresser works overtime on a Sunday between 10 am and 5 pm, they would receive the 200% Sunday rate rather than both the Sunday penalty rate (200%) and overtime rate (150%) combined.

Similarly, if a casual employee works on a Saturday between 7 am and 6 pm, they would receive the Saturday rate of 133% plus their casual loading, rather than having multiple penalties stacked on top of each other.

These provisions ensure employees maintain a healthy work-life balance and receive support during various life circumstances.

Annual Leave

Full-time and part-time employees accrue 4 weeks of annual leave per year. Annual leave accrues gradually throughout the year and rolls over if unused. During annual leave, employees receive their base rate plus:

• Annual leave loading of 17.5%, or
• The relevant weekend penalty rates
• Whichever provides the greater benefit

Annual Leave in Advance

Employers and employees may agree in writing for leave to be taken before it's accrued. This agreement must specify the leave amount and start date. If employment ends before the advanced leave is accrued, employers can deduct the equivalent amount from the employee's final pay.

Cashing Out Annual Leave

Employees may cash out annual leave under strict conditions:

• Must be agreed to in writing
• Cannot result in less than 4 weeks remaining leave
• Maximum of 2 weeks cashed out per 12 months
• Payment must equal what would have been paid if leave was taken
• Employers cannot pressure employees to cash out leave

Excessive Leave Management

An excessive leave accrual occurs when an employee has more than 8 weeks of paid annual leave. Both parties must try to agree on reducing the leave balance. If an agreement can't be reached:

• Employers can direct leave to be taken with proper notice
• Employees can request to take leave after 6 months of excessive accrual
• Any direction or request must leave at least 6 weeks of leave remaining
• Leave periods must be at least one week
• Notice periods between 8 weeks and 12 months apply
  
  

Personal and Carer's Leave

Full-time and part-time employees receive 10 days of paid personal/carer's leave each year. This leave covers:

• Personal illness or injury
• Caring for immediate family or household members
• Unexpected emergencies affecting immediate family

Employees must notify their employer as soon as practicable if taking personal leave. For absences of two or more consecutive days, employers can request reasonable evidence, such as a medical certificate.

Family and Domestic Violence Leave

All employees, including casual workers, are entitled to 10 days of paid family and domestic violence leave each year. This entitlement renews annually but doesn't accumulate from year to year.

The leave supports employees experiencing family and domestic violence to:

• Attend legal proceedings
• Access police services
• Attend counselling
• Relocate to a safe place
• Make arrangements for their safety
• Seek medical attention

Confidentiality is paramount when handling family and domestic violence leave requests. Employers must:

• Protect sensitive information
• Maintain strict privacy
• Handle documentation securely
• Limit access to relevant information
• Support affected employees with workplace safety planning

Notice and evidence requirements should be handled sensitively, recognising the complex nature of domestic violence situations. Employers can request reasonable evidence but must maintain confidentiality and handle information appropriately.

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• The Hair & Beauty Industry Award 2020 (MA000005) covers hair and beauty services throughout Australia.
• Full-time (38 hours), part-time (agreed regular hours), and casual (25% loading) employment options
• Ordinary hours: 7 am to 9 pm Monday to Friday, 7 am to 6 pm Saturday
• New casual conversion rights effective from August 27, 2024
• Right to disconnect provisions start August 26, 2024 (August 26, 2025 for small businesses)
• Three classification levels based on skills and responsibilities
• The current minimum rate of $26.24 per hour (Level 2)
• Superannuation at 11.5% from July 1, 2024, increasing to 12% from July 1, 2025
• Various allowances for tools, travel, meals, and special duties
• Overtime rates: 150% first three hours, 200% thereafter
• Sunday rate: 200% between 10 am and 5 pm
• Public holiday rate: 250%
• Time off instead of payment (TOIL) available by agreement
• 4 weeks annual leave plus 17.5% loading
• 10 days personal/carer's leave
• 10 days paid family and domestic violence leave
• Annual leave can be taken in advance or cashed out under strict conditions
• Excessive leave management is required for balances over 8 weeks

Cloud payroll software transforms this complex task into a streamlined, automated process.

Modern cloud payroll platforms automatically calculate correct pay rates, penalties, and allowances based on the Hair & Beauty Industry Award.

The software updates automatically when award changes occur, ensuring your business stays compliant without constant manual oversight.

Key Benefits of Automation

• Accurate calculation of base rates, overtime, and penalty rates
• Automatic application of allowances
• Built-in compliance with leave entitlements
• Real-time award updates
• Simplified rostering that considers award requirements
• Automated record-keeping for audit purposes
• Reduced risk of underpayment claims

Cloud payroll software integrates time and attendance, rostering, and payroll processing into one system. This integration eliminates double handling of data and reduces the risk of manual errors that could lead to compliance issues.

The software can also generate comprehensive reports for audit purposes, storing all required documentation securely in the cloud. This makes it simple to demonstrate compliance if questioned by Fair Work or employees.

Ready to Simplify Your Payroll?

Pay Cat specialises in implementing cloud payroll solutions that automate award interpretation and ensure compliance. Our team of experts will:

• Set up your system with the correct award rules
• Train your team on the software
• Provide ongoing support
• Keep you updated with award changes

Contact Pay Cat today for a free demonstration of how cloud payroll can transform your award compliance.