The Hospitality (General) Award is a complex and ever-evolving Modern Award focused in several sectors and has a broad coverage in one of the country's biggest industries.
You can also read our article that covers the 8 conditions that hospitality industry businesses may not know exists in the Hospitality Industry Award.
In addition, you can download a FREE copy of our Hospitality Industry Award eBook that covers everything you need to know about the award, without the jargon which comes with a BONUS payroll processing checklist.
This summary provides a comprehensive understanding of everything you need to know about the Hospitality Award to ensure you have maximum compliance.
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.
The Hospitality Industry Award covers quite a range of areas, including:
- Motor inns and motels
- Boarding establishments
- Condominiums or similar establishments
- Health or recreational farms
- Private hotels, guest houses or serviced apartments
- Caravan parks
- Ski lodges
- Holiday flats or units, ranches or farms
- Hostels or any other type of residential or tourist accommodation
- Wine saloons, wine bars or taverns
- Liquor booths
- Restaurants operating in, or in connection with, premises owned or operated by employers otherwise covered by this award
- Function areas or convention or similar facilities operating in, or in connection with, premises mentioned above
The Hospitality Industry Award also covers:
- On-hire employees that are working in the hospitality industry, and the on-hire employers of those employees
- Apprentices or trainees that are engaged with or employed by a group training employer that is covered by this award
However, the Hospitality (General) Award does NOT cover employers or employees in the following industries:
- Registered and licensed clubs under State or Territory legislation.
- Boarding schools or residential colleges
- Councils, county councils, municipal councils, shires, shire councils or local government bodies established under State or Territory legislation
- Catering services provided by a restaurant as an incidental business
- Theme parks
- In-flight catering for airlines
- Restaurants covered by the Fast Food Industry Award, the Registered and Licensed Clubs Award or the Restaurant Industry Award
- Contract cleaning undertaken by companies not operating exclusively in the hospitality industry.
- Catering services provided by employers in the aged care industry (except where these services are provided for or within an aged care facility by employers otherwise covered by this award)
- Contract security, contract gardening or contract maintenance provided by an external provider, whose primary business falls outside the hospitality operation
- Businesses primarily concerned with the sale of petroleum or mixed functions involving the sale of petroleum.
If an employer or an employee is covered by more than one Award (i.e. the Hospitality Industry Award and the Fast Food Industry Award), they are covered by the Award that contains a classification that is the most appropriate to the work that they are doing.
An employee that is working in the hospitality industry but is not covered by this industry award may be covered by an award with occupational coverage.
Hospitality Award: Types of Employment
- Full-time Employees,
- Part-time Employees, or
- Casual Employees
To be classified as a full-time employee (otherwise commonly referred to as permanent employees), you must:
- work 38 ordinary hours per week, or
- work an average of 38 hours per week, or
- be considered a full-time employee by employers despite working less than 38 hours per week
Part-time employees work at least 8 ordinary hours (but not more than 38 ordinary hours) per week or roster cycle and have reasonably predictable hours
If part-time employees carry out the same work as full-time employees, they must receive the same pay conditions on a proportionate basis.
Setting Guaranteed Hours and Availability
At the time of employment, the employer and employee must agree in writing on the number of hours guaranteed over the pay cycle, and on which days of the week these hours will be worked.
Any changes made to part-time employees’ guaranteed hours are only to be made with written consent from the employee.
RosteringA part-time employee must not be rostered to work outside their availability and they must have at least two days off each week.
Increasing Guaranteed Hours to Match Regular Work Pattern
If a part-time employee covered by the Hospitality (General) Award has regularly been working more than their guaranteed hours for at least 12 months, then they can request in writing that the employer increases their guaranteed hours. If this request is granted, the change must be recorded in writing before it occurs.
The employer can only refuse this request on reasonable business grounds, and the employee must be notified of the refusal in writing and the grounds for it.
Change in Employee’s Circumstances That Changes Their Availability
If a part-time employee has a genuine and ongoing change to their personal circumstances, they may alter their availability by giving 14 days written notice to their employer.
If the employer is unable to reasonably accommodate the change, then:
- The employee’s agreed on guaranteed hours cease to apply; and
- The employee and employer must agree on a new set of guaranteed hours
Hospitality Industry Casual Employees
A casual employee works irregular hours and has no guaranteed hours of work.
Because a casual employee works irregular hours, they don’t have access to the same National Employment Standards entitlements as a full-time employee or part-time employee. For example, casual employees typically don’t have access to:
- annual leave
- personal/carer’s leave and sick leave,
- termination and redundancy pay benefits, and
- other entitlements
As a result, casual employees are paid an additional 25% loading on top of their base rate of pay.
Casual employees can work a maximum of:
- 12 hours per day or per shift
- 38 hours per week, or an average of 38 hours per week over a roster cycle (over a maximum 4-week cycle)
A minimum of 2 consecutive hours of work must be completed when an employee is required to attend work.
Employers must pay casual employees at the end of each engagement unless it has been agreed that the employee will be paid either weekly or fortnightly.
Regular casual employees that have been working on a systematic basis for at least 12 months may elect to have their employment changed over to a full- or part-time role depending on the regular number of hours that they work. This election may be consented to or refused on reasonable grounds.
Conversion From Casual to Full-Time or Part-Time Employment
Casual employees may choose to have their employment contract converted to a part-time or full-time contract depending on the number of hours they regularly work:
- An employee that works an average of 38 or more hours a week over 12 months may elect to change over to a full-time contract
- An employee that works an average of less than 38 hours a week over 12 months may elect to change over to a part-time contract
An employer may consent or refuse a casual employee’s request to change their contract type only on reasonable grounds such as:
- The size and needs of the workplace or enterprise
- The nature of work being carried out
- The qualifications, skills and training of the employee
- Trading patterns of the workplace or enterprise (including cyclical and seasonal trading demand factors)
- The employee’s personal circumstances
- Any other relevant matter
Once an agreement is made for a casual employee to have their employment converted to either full-time or part-time employment, the employee and employer must agree on:
- Whether employment will be converted to part-time or full-time employment
- If it is agreed that the employee will be employed on a part-time basis, part-time employee conditions must be discussed and agreed on
The conversion will take effect from the next pay cycle after agreements have been reached unless otherwise agreed on.
Once a casual employee has converted to full-time or part-time, they can only revert to casual employment with the written agreement of the employer.
However, there is no obligation for a casual employee to convert to full-time or part-time, and an employer cannot require a casual employee to do so, regardless of the length of employment.
Hospitality Award Apprentices
This Modern Award applies to apprentices in the same way that it applies to employees unless explicitly stated.
Employers must not require any apprentice under the age of 18 to work overtime or shift work. However, an apprentice may agree to do so if they are requested to.
Employers must not require apprentices to work overtime or shift work if it prevents their attendance at training in accordance with their training agreement, except in an emergency.
Employers must release apprentices from work duties to attend their training without any pay loss or termination of employment.
For wage calculation purposes, the time that an apprentice spends attending training or assessments is to be regarded as time working.
Employers must reimburse apprentices for all fees paid by the apprentice to a registered training organisation for courses that they are required to attend. Employers must also reimburse the apprentice for textbook purchases made for the apprenticeship.
The employer must make any required reimbursements by whichever of the following is later:
- 6 months after the start of the apprenticeship, or
- 6 months after the relevant stage of the apprenticeship, or
- 3 months after the start of the training provided by the RTO.
Reimbursements are subject to the employer being satisfied that the apprentice is making satisfactory progress in the apprenticeship.
Block Release Training
If a Hospitality Award apprentice is attending training that requires an overnight stay, the employer must pay reasonable travel costs for travelling to and from the training. However, the employer is not obligated to pay if the apprentice could have attended training at a close venue and attending the more distant training had not been agreed on.
Reasonable travel costs include:
- The total cost of reasonable transportation (including transportation of tools, where required) to and from the training; and
- Accommodation costs; and
- Reasonable expenses, including for meals, incurred which exceed those incurred in the normal course of travelling to and from the workplace.
- Reasonable costs do not include payment for travelling time or expenses incurred while not travelling to and from the block release training.
The amount to be paid may be reduced by any amount that the apprentice was eligible to receive for travel costs to attend block release training under a Government apprentice assistance scheme.
Apprentices need to be paid the relevant wage for their competency and will progress to the next rate if they:
- achieve competency in the relevant proportion of the total units specified in rates payable,
- and if they meet any requirements of the relevant state/territory apprenticeship authority and any additional requirements of the relevant training package when looking at the demonstration of competency and minimum work experience requirements.
- the Registered Training Organisation (RTO), the employer and the apprentice agree that the above requirements have been met, or
- the employer is provided with written advice that the RTO has assessed that the apprentice has met the above requirements and the employer has not advised the RTO and apprentice of any disagreement within 21 days of receipt of the advice.
If the employer disagrees with the RTO’s assessment of the above requirements, and all involved parties cannot resolve the dispute, the matter may be referred to the relevant state/territory apprenticeship authority for determination.
The definition of “competency” utilised for training packages is “the consistent application of knowledge and skill to the standard of performance required in the workplace.” It embodies the ability to transfer and apply skills and knowledge to new situations and environments.
Apprentices must be paid the wage rate that they are entitled to from the first full pay period to commence on or after the date on which an agreement or determination is reached, or on a date determined under the dispute resolution process.
A junior employee is an employee that is under the age of 21 and is not undertaking a nationally recognised apprenticeship or training.
Any employee under the age of 18 cannot be required to work more than 10 hours in a shift.
Where laws permit it, junior employees are allowed to work in a bar or a place where liquor is sold, however, they must be paid as an adult at the correct rate for the work being performed.
Employers are allowed to request a birth certificate or proof of age of a junior employee at any time.
Ordinary Hours of Work
A full-time employee’s ordinary hours consist of working an average of 38 hours per week. An average of 38 hours per week can be worked in any of the following ways:
- a 19 day month, of 8 hours per day
- 4 days of 8 hours and one day of 6 hours
- 4 days of 9.5 hours per day
- 5 days of 7 hours and 36 minutes per day
- 76 hours over a 2 week period with a minimum of 4 days off each 2 week period
- 152 hours each 4 week period with a minimum of 8 days off each 4 week period
- 160 hours each 4 week period with a minimum of 8 days off each 4 week period plus an accrued day off
- Any combination of the above
The ordinary hours' arrangement agreed on by both the employer and employee must satisfy the following conditions:
- Shifts must be a minimum of 6 hours on any day (excluding meal breaks.
- The maximum length of a shift (excluding meal breaks) on any day is 11.5 hours.
- If an employee is rostered to work more than 10 hours on more than 3 consecutive days, they are entitled to a break of at least 48 hours.
- An employee can work more than 10 hours a maximum of 8 times in a 4-week cycle.
- The maximum spread of hours on split shifts is 12 hours.
Where a full-time employee chooses to work 152 hours per 4-week cycle with at least 8 days off is chosen, the following conditions also have to be satisfied:
- Employees can’t work more than 10 consecutive days without a rostered day off.
- If an employee works more than 20 days in a 4 week period, overtime rates must be paid for each day above 20 worked in that period.
Where a full-time employee chooses to work 160 hours per 4 week period with an accrued day off is chosen, the following conditions also have to be satisfied:
- No employee can work more than 10 days in a row without a rostered day off.
- Where practical, accrued days off should be next to an employee’s rostered days off
- Up to 5 accrued days can be banked.
- With the employer’s permission, accrued days off can be taken in part-day amounts.
- If an accrued day off falls on a public holiday, the next day is to be taken as the accrued day off if possible.
A part-time employee’s ordinary hours (i.e. rostered hours) must meet the following conditions:
- A minimum of 3 hours must be worked on a given day (excluding meal breaks)
- A maximum of 11.5 hours may be worked on any day (excluding meal breaks)
- If an employee is rostered to work more than 10 hours on more than 3 consecutive days, they are entitled to a break of at least 48 hours
- An employee can work more than 10 hours a maximum of 8 times in a 4-week cycle
- The maximum spread of hours on split shifts is 12 hours
Catering in Remote Locations
This clause applies to Hospitality Award employers that provide catering services to clients in remote locations when the employer and the majority of employees agree to schedule work over consecutive recurring cycles followed by consecutive non-working days.
The maximum number of ordinary hours worked in a cycle must not exceed 40 multiplied by the number of working and non-working weeks in the cycle. If employees work more than their ordinary hours, they must be paid overtime for the excess of time. Employees must also be paid at the overtime rate for time worked in excess of 8 hours per day.
Wages may be paid according to the average number of hours that are worked per week in a roster cycle instead of the actual number of hours worked.
An Hospitality Award employer and the majority of employees at a workplace can agree to an arrangement under which employees are able to take time off during their ordinary hours of work, and then make-up that time later.
An employee is entitled to breaks as normal whilst working their make-up time, and penalty rates must be paid if make-up hours are being worked at a time penalty rates apply.
Employers must keep a record of make-up time arrangements as a time and wages record.
Rosters (Full-Time and Part-Time Employees)
Hospitality Award Employers must prepare a roster that shows each employee (including full-time and part-time employees), their name and the times that they start and finish work. The roster must be placed in a conspicuous area that is easily accessible by the employees.
The roster for specific full-time or part-time employees can be changed at any time by mutual agreement of the employer and employee, or by giving the employer at least 7 days notice.
Employees must have a minimum break of 10 hours between when ordinary hours are finished on one day and started the next. A minimum break of 8 hours for a changeover of rosters must be given.
Alteration of Rosters and Notice of Days Off
The roster can be changed at any time by mutual agreement of the employer and employee on at least 7 days notice.
Where practicable, 2 weeks notice of rostered days off, days off or accrued days off should be given, providing days off are changed through mutual consent, through sickness or other causes over which the employer has no control.
The table below outlines the breaks that employees are entitled to depending on the number of hours worked:
Hours worked per shift
Between 5 and 6 hours
Elective unpaid meal break of up to 30 minutes
Between 6 and 8 hours
1 x minimum half-hour meal break
(To be taken between first 2 to 6 hours of work)
Between 8 and 10 hours
1 x minimum half-hour meal break
(To be taken between first 2 to 6 hours of work)
1 x 20 minute paid rest break
More than 10 hours
1 x minimum half-hour meal break
(To be taken between first 2 to 6 hours of work)
2 x 20 minute paid rest breaks
If an employee works more than 6 hours and is unable to take an unpaid meal break, then the employee must be paid an additional 50% of their ordinary hourly rate from the end of 6 hours after starting work until a break is taken or the shift ends.
If an employee works more than 5 continuous hours after an unpaid meal break, or more than 2 hours overtime, an additional 20 minute paid rest break needs to be given.
For example, if an employee works a 7-hour shift followed by 3 hours of overtime, they will be entitled to one minimum half-hour meal break, as well as one paid 20-minute rest break within their overtime hours.
The Fair Work Commission subjects each Modern Award to an annual wage review, so make sure to you are paying your employees according to the latest Pay Guide.
Please also refer to the minimum rate of pay for different classification here.Back to top
An employer may require an employee to work reasonable overtime hours at overtime rates.
However, an employee can refuse to work overtime hours if they are unreasonable. When determining whether overtime hours are reasonable, the following must be taken into account:
- Any risk to employee health and safety from working the additional hours
- The employee's personal circumstances, including family responsibilities
- The needs of the workplace
- Whether the employee is entitled to receive overtime payments, penalty rates or other compensation for working additional hours
- Notice is given by the employer when requesting the additional hours
- Notice is given by the employee of refusal to work additional hours
- The usual patterns of work in the industry
- The nature of the employee's role and the employee's level of responsibility
- Any other relevant matters
Payment of Overtime
Employers need to pay overtime rates if:
- The ordinary weekly hours of work are exceeded, e.g. working more than 38 hours for a full-time employee.
- An employee works more than 10 hours (excluding unpaid meal breaks) on a single day.
- An employee is working on a rostered day off that is not replaced with another working day or banked.
When a full-time or part-time employee works overtime on a rostered or accrued day off, the employee must be paid for a minimum of 4 hours even if they work for less.
However, this does not apply if the work is part of a normal roster that began on the day before the rostered or accrued day off, or is overtime that is continuous from the previous day’s duty.
The table below outlines the overtime rates that need to be paid under this Modern Award:
For overtime worked on
(% of ordinary hourly rate)
Monday to Friday—First 2 hours
Monday to Friday—after 2 hours
Midnight Friday to midnight Sunday
Rostered day off
Time Off Instead of Payment for Overtime
Hospitality industry employers and employees may agree in writing to taking time off instead of being paid for a certain amount of overtime that has been worked.
An agreement must state:
- The number of overtime hours that it applies to and when those hours were worked; and
- That the employer and employee agree that the employee may take time off instead of being paid for the overtime; and
- That if at any time the employee requests it, the employer must pay the employee for overtime covered by the agreement but not taken as time off; and
- Any payment must be made in the next pay period following the request.
Employees are entitled to take the same amount of time off as the number of overtime hours worked.
Time off must be taken:
- within 6 months after the overtime is worked, and
- at a time within that 6 month period that is agreed on by both the employee and employer
If time off for overtime is not taken within the period of 6 months, the employer must pay the employee for the overtime in the next pay period at the overtime rate applicable to the overtime when worked.
Employers must keep copies of any agreement as an employee record. They must not exert undue influence or pressure on employees to take time off instead of payment for overtime.
If on termination of the employee’s employment, the employer must pay the employee for the overtime worked at the applicable overtime rate.
The table below outlines the penalty rates that are to be paid at different times and on different days:
Time of ordinary hours worked
Penalty rates for Full-time and part-time employees
Penalty rate for Casual employees
Monday to Friday
Monday to Friday
100% plus $2.27 per hour or part of an hour
125% plus $2.27 per hour or part of an hour
Monday to Friday
100% plus $3.41 per hour or part of an hour
125% plus $3.41 per hour or part of an hour
Penalty Rates Are Not Cumulative
Because penalty rates are applicable in various circumstances, where employees are entitled to two or more penalty rates, the employer must pay the employee the highest applicable penalty rate.
Additional Provisions for Work on Public Holidays
Full-time and part-time employees who work on a public holiday must be paid penalty rates for a minimum of 4 hours work and casual employees who work must be paid penalty rates for a minimum of 2 hours work, even if fewer hours are worked.
Hours that are worked on the day immediately before or immediately after a public holiday, that form part of one continuous shift, are counted as part of the minimum hours worked.
An employer and a full-time or part-time employee may agree that instead of payment of penalty rates at 225% of the ordinary hourly rate of the employee, the following arrangements can apply:
- The employee is paid at 125% of the ordinary hourly rate of the employee under for hours worked on the public holiday; and
- An amount of paid time, equal to the hours worked on the public holiday, is added to the employee’s annual leave. Alternatively, the employee is to be allowed to take a day off during the week of the public holiday, or within a period of 28 days after the public holiday.
An employee and employer may agree to extend the 28 day period for taking the time off to within 6 months, subject to the following:
- The agreement is recorded in writing and kept as an employee record
- The accrued time off is taken at a time within the period of 6 months agreed by the employee and the employee
- If the accrued time off is not taken within the period of 6 months, the employer must pay the employee for the time off in the next pay period, and
- If on termination of the employee’s employment, accrued time off has not been taken, the employer must pay the employee for the accrued time off
This applies to full-time and part-time employees who are required to work on Christmas Day when it falls on a weekend and is not a public holiday. Employers must pay employees penalty rates of 125% of their ordinary hourly rate for hours worked on Christmas Day and also allow the employee to take a substitute day off.
This applies when an employee (other than a grade 2 or 3 food and beverage attendant) carries out higher duties for 2 or more hours on any particular day.
They are entitled to the higher rate for the entire day.
Payment of Wages
However, an employer can determine specific employees whose roles are best suited to monthly pay periods.
Payments must be made on Monday-Thursday, except on termination.
The employer and individual employees can agree to wages being paid by cash, cheque or electronic bank transfer at no cost to the employee.
If an employee is being paid by cash or cheque and they have to wait more than 15 minutes at the workplace, they are entitled to overtime for any time longer than 15 minutes that they spend waiting.
Annualised Salary Arrangements
An annualised salary arrangement is when an employer agrees to pay their employee an annual salary that includes all entitlements in terms of the relevant Modern Award.
These arrangements apply to all employees other than casual employees and employees within the Managerial Staff (Hotels) classification level.
As of 1st March 2020, Fair Work will be requiring businesses to keep accurate records of salary staff's actual hours worked and must be maintained for 7 years.
Employers must ensure that a salary staff's annual wage can't be less than what they would've been paid over the year if they were paid all the award entitlements for their job.
If you have salary staff covered by the Clerks Private Sector Award, check out our Ultimate Guide on Annualised Salary Changes.
- Fork-lift driver allowance - If your employee is operating a fork-lift at work
- Meal allowance - If your employee is required to work more than 2 hours overtime with less than 24 hours notice
- Tool and equipment allowance - If your employees are required to supply their own tools and equipment
- Special clothing allowance - If your employees are required to wear any specialised clothing or protective items outside of a regular uniform
- Motor vehicle allowance - If a Managerial Staff (Hotels) employee is required to use their own vehicle to carry out duties
- Working late - If your employee finishes work so late that it is unreasonable for them to travel home by their regular means of transport
- Working early - If your employee starts work so early that it is unreasonable for them to travel to work by their regular means of transport
- Working away from usual place of work - If your full-time or part-time employee is required to work at a place that is more than 80 kilometres from their usual place of work
- Airport catering travel allowance - all airport catering staff are given daily travel allowances
- First aid allowance - If your employee has a first aid certification and is required to use it on duty
- Airport catering supervisory allowance - An airport catering supervisor is entitled to an allowance based on the amount of staff they are supervising
- Split shift allowance - If your full- or part-time employees are performing split shifts
- Overnight stay allowance - If your employee is requested to stay onsite overnight to assist outside of normal business hours
Search our database for all relevant allowances to your modern award.
A rate of 9.5% of an employee’s ordinary earnings must be contributed to a nominated fund.
However, it does not apply to casual employees.
According to the National Employment Standards, employees are entitled to 4 weeks paid leave per year, plus an additional week for some shift workers.
Payment for Annual Leave Loading
Under the Hospitality Award, a rate of 17.5% leave loading on top of their annual leave is applied when an employee takes paid time off.
Employees must be paid the higher of:
- An annual leave loading of 17.5% of their ordinary pay rate; or
- The weekend and shift penalties the employee would have received if they weren’t on leave during that period.
If a full-time employee applies for leave between Thursday this week and Wednesday next week, he or she would typically work 8 hours of shiftwork on a Saturday too.
The employer must calculate 38 hours, including a 17.5% leave loading and compare with how much the employee will typically receive if they had been paid working across that period with the Saturday penalty rates.
Whichever of the two calculations is higher is how much the employee should be paid across that period of time, not for individual days.
The idea is so that the employee is protected from being paid less for going on paid annual leave.
Alternative Leave Arrangements
- Leave in advance: employers and employees may agree in writing to the employee taking a period of paid annual leave before the employee has accrued the leave.
- Cashing out annual leave: employers and employees may agree in writing to cashing out a particular amount of an employee’s accrued paid annual leave.
- Excessive leave accruals: employers and employees may agree in writing on how to reduce or eliminate excessive leave accrual. An excessive leave accrual is defined as having accrued more than 8 weeks paid annual leave, or 10 weeks for a shift worker.
Other Types of Leave:
- Personal/carer’s leave and compassionate leave: provided for in the National Employment Standards.
- Parental leave and related entitlements: provided for in the National Employment Standards.
- Community service leave: provided for in the National Employment Standards.
- Unpaid family and domestic violence leave: provided for in the National Employment Standards.
This applies if an employer is intending to close down its operations or part of a workplace for a particular period and wants to require affected employees to take paid annual leave during this period.
The employer must give the affected employees at least 4 weeks notice of a temporary closedown period and then may require affected employees to take a period of paid annual leave during a temporary closedown period.
According to the National Employment Standards, all employees are entitled to a paid day off on a public holiday (or unpaid for casual employees), except where reasonably expected to work.
Additional Public Holiday Arrangements for Full-Time Employees
If a full-time employee’s rostered or accrued day off falls on a public holiday, one of the following needs to be done:
- Pay the employee an extra day’s pay
- Give the employee an alternative day off within 28 days
- Give the employee an additional day’s annual leave
Public Holiday Arrangements for Part-Time Employees
If a part-time employee is to work on a day that is a public holiday, the following applies:
- The part-time employee is entitled to not go to work on that day
- If the part-time employee does not go to work, the employer must pay the employee for the ordinary hours that the employee was to work that day.
- A part-time employee who works on that day must be paid accordingly
Part-Day Public Holidays
Part-day public holidays provisions fall under the National Employment Standards.
Industry Specific Provisions
Deductions for Breakages or Cashiering Underings
A Hospitality Award (MA000009) employer must not deduct any sum from the wages of an employee for any breakages or cashiering underings, except in the case of deliberate misconduct.
Any deductions made must be reasonable within the circumstances and proportionate to the loss of the employer.
If an employee is under the age of 18, deductions must not be made unless they have been agreed upon in writing by the employee’s parent or guardian.
Deductions for Provision of Employee Accommodation and Meals
An employer can deduct employee’s wages for the provision of either meals or accommodation or both, under reasonable circumstances.
If an employee is under the age of 18, deductions must not be made unless they have been agreed upon in writing by the employee’s parent or guardian.
Deductions for Meals
An employer can only deduct an amount from an employee’s wages for meals if:
- The employee does not live in accommodation provided by the employer; and
- The meal is provided during the employee’s normal working hours; and
- The employee has been informed of the amount that will be deducted from their wages for the meal and has consented.
Deductions for Accommodation and/or Meals
An employer can deduct from the wages of an adult employee, or a junior employee on adult rates, as follows:
Service provided by the employer
Single room and 3 meals a day
Shared room and 3 meals a day
Single room only; no meals
Shared room only; no meals
Termination of Employment
Notice of Termination by an Employee
An employee must give their employer notice of termination as below:
Employee’s period of continuous service with the employer at the end of the day the notice is given
Period of notice
Not more than 1 year
More than 1 year but not more than 3 years
More than 3 years but not more than 5 years
More than 5 years
The notice that an employee is required to give is the same required of an employer, except the employee does not have to give additional notice based on their age.
If an employee who is at least 18 years old does not give the period of notice required, then the employer can deduct from wages due to the employee. However, no more than one week’s wages for the employee.
If the employer has agreed to a shorter period of notice, then no deduction can be made.
Job Search Entitlement
When a Hospitality Award (MA000009) employer has given notice of termination to an employee, the employee must be given up to one day off without loss of pay to seek other employment. This time off is to be taken when convenient to the employee, after consultation with the employer.
Termination and redundancy pay requirements (including notice of termination) by an employer is covered under the National Employment Standards.
Businesses that don't have specialised payroll team members or fail to understand their employer obligations often are exposed to severe penalties due to underpayments, and what's constituted as wage theft.
You can also download a FREE copy of our Hospitality Award eBook with a BONUS payroll processing checklist to ensure you maximise your payroll compliance.
If this is all too much trouble and you'd rather automate the process like many of our clients, you can make the shift over to cloud payroll by engaging us to help you to transition from a manual to a cloud system seamlessly.
Here’s how cloud payroll works:
- Time and Attendance
Employees clock their time using an integrated time and attendance system that syncs all data with your cloud payroll software.
- Live Timesheet Approval
No more manually entries or paper timesheet approvals. Supervisors and managers approve time and attendance on the go directly on the cloud payroll software.
- Automated Modern Awards Compliance
A collection of “rules” based on the Hospitality Award are implemented into your cloud payroll software that automatically calculate pay conditions (penalties, allowances, shift work, and more).
- Automated Payslips
Payslips are automatically generated that comply with the Hospitality Award
- Time and Attendance
Payroll Complete In Under an Hour
Never get it wrong. No back pay calculations. No inefficient manual interpretation. No data re-entry. Stress free paydays that take less than an hour to complete!
If you’re interested in moving from a manual payroll system to an automated cloud payroll system, get in touch with us today for a free demo.