Everything you need to know about the Hospitality Award (MA000009) without the jargon.
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The Hospitality (General) Award is a complex Modern Award focused on several sectors and covers one of the country's biggest industries.
You can also read our article covering the eight conditions hospitality industry businesses may not know exist 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 comprehensively explains everything you need to know about the Hospitality Award to ensure maximum compliance.
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.
The HIGA Award covers quite a range of areas, including:
The HIGA Award also covers:
However, the Hospitality (General) Award does NOT cover employers or employees in the following industries:
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 working in the hospitality industry who is not covered by the HIGA award may be covered by an award with occupational coverage.
In other words, an Occupational Award may apply. These awards are designed to cover specific job types or professions across multiple industries. For example, an administrative assistant working in a hotel might be covered by the Clerks - Private Sector Award rather than the HIGA, depending on their specific duties.
To be classified as a full-time employee (otherwise commonly referred to as permanent employees), you must:
Part-time employees work at least eight 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.
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.
A part-time employee must not be rostered to work outside their availability and they must have at least two days off each week.
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.
If a part-time employee has a genuine and ongoing change to their personal circumstances, they may alter their availability by giving their employer 14 days of written notice.
If the employer is unable to reasonably accommodate the change, then:
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:
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:
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 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.
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 employer may consent or refuse a casual employee’s request to change their contract type only on reasonable grounds such as:
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 the following:
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.
The HIGA 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 they must 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:
Reimbursements are subject to the employer being satisfied that the apprentice is making satisfactory progress in the apprenticeship.
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 attended the more distant training had not been agreed upon.
Reasonable travel costs include:
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:
Either:
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.
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:
The ordinary hours' arrangement agreed on by both the employer and employee must satisfy the following conditions:
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:
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:
Part-time Employees
A part-time employee’s ordinary hours (i.e. rostered hours) must meet the following conditions:
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. Employees who work more than their ordinary hours 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.
Hospitality Award Employers must prepare a roster showing each employee (including full-time and part-time employees), their name and the times 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 the end of ordinary hours on one day and the start of the next. A minimum break of 8 hours must also be given for a roster changeover.
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 |
Breaks entitled |
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.
Please refer to the latest Pay Guide for the Hospitality Industry (General) Award [MA000009].
Please also refer to the minimum rate of pay for different classification here.
Back to topAn 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:
Employers need to pay overtime rates if:
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 |
Overtime rate (% of ordinary hourly rate) |
Monday to Friday—First 2 hours |
150% |
Monday to Friday—after 2 hours |
200% |
Midnight Friday to midnight Sunday |
200% |
Rostered day off |
200% |
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:
Employees are entitled to take the same amount of time off as the number of overtime hours worked.
Time off must be taken:
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 |
100% |
125% |
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 |
Saturday |
125% |
150% |
Sunday |
150% |
175% |
Public holiday |
225% |
250% |
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.
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:
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:
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.
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.
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.
Search our database for all relevant allowances to your modern award.
Currently, a rate of 11.5% of an employee’s ordinary earnings must be contributed to a nominated fund.
Watch our free Superannuation masterclass
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:
Example:
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.
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 close down 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.
If a full-time employee’s rostered or accrued day off falls on a public holiday, one of the following needs to be done:
If a part-time employee is to work on a day that is a public holiday, the following applies:
Part-day public holidays provisions fall under the National Employment Standards.
Read the State-by-State Public Holidays Guide
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.
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.
An employer can only deduct an amount from an employee’s wages for meals if:
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 |
Deduction |
Payable |
Single room and 3 meals a day |
$219.40 |
per week |
Shared room and 3 meals a day |
$213.92 |
per week |
Single room only; no meals |
$208.43 |
per week |
Shared room only; no meals |
$202.95 |
per week |
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 |
1 week |
More than 1 year but not more than 3 years |
2 weeks |
More than 3 years but not more than 5 years |
3 weeks |
More than 5 years |
4 weeks |
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.
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.
Read our guide on redundancy payments.
Compliance with the Hospitality Industry (General) Award 2020 is crucial for employers in the hospitality industry. This award sets out the minimum employment standards and conditions for employees, including minimum wage rates, working hours, overtime, annual leave, sick leave, and other entitlements. Employers must ensure they adhere to the award’s provisions, including paying employees the correct rates, providing adequate breaks, and meeting the requirements for casual and part-time employees.
To ensure compliance, employers should:
By taking these steps, employers can ensure they are meeting their obligations under the Hospitality Industry General Award, thereby avoiding potential penalties and fostering a fair and compliant workplace.
Managing junior employees in the hospitality industry requires careful consideration of their entitlements and limitations under the award. Junior employees are entitled to the same minimum wage rates as adult employees but may have restrictions on their working hours and duties.
Employers should:
By following these guidelines, employers can create a positive and compliant work environment for junior employees, helping them to develop their skills and advance in the hospitality industry.
For further information on the Hospitality Industry (General) Award 2020, employers and employees can access the following resources:
By utilising these resources, employers and employees can stay informed about the Hospitality Industry General Award and ensure they are meeting all necessary compliance requirements.
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 Roubler by engaging us to help you to transition from a manual to a cloud system seamlessly.
Here’s how Roubler cloud payroll works:
If you’re interested in moving from a manual payroll system to Roubler, get in touch with us today for a free demo.
Manual calculations and interpretations can lead to errors, potentially resulting in underpayments and compliance issues.
Automated payroll software can significantly simplify award compliance and payroll processing for hospitality businesses. By incorporating award interpretations, these systems can automatically calculate correct pay rates, penalties, and allowances based on employee classifications and work schedules.
Features such as time and attendance tracking, automated timesheet approvals, and built-in award rules can help ensure accurate payments while saving time and reducing the risk of errors. This allows you to focus on running your hospitality business rather than getting bogged down in payroll complexities.
If you want to streamline your payroll processes and ensure compliance with the Hospitality Industry (General) Award, consider implementing an automated payroll solution.
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