Table of content
- What is the Hospitality Industry General Award?
- Who is entitled to the Hospitality Industry Award?
- How is the shiftwork arranged in the Hospitality Industry Award?
- How are wages and allowances calculated in the Hospitality Industry Award?
- How is the leave managed in the Hospitality Industry Award?
- How to keep in compliance with the Hospitality Industry Award?
- How can Workstem assist you?
This article provides guidelines on the Australian Hospitality Industry Award package. For more information on this award, please refer to the Hospitality Industry (General) Award [MA000009].
What is the Hospitality Industry General Award?
The Hospitality Industry General Award, also known as the Hospitality Award, is a set of legal minimum employment standards and conditions that apply to employees working in the hospitality industry in Australia.
The award sets out the minimum wage rates, working hours, overtime, annual leave, sick leave, and other entitlements for employees working in various roles within the hospitality industry, such as chefs, waiters, bartenders, and housekeeping staff. The award is designed to ensure that employees in the hospitality industry are treated fairly and receive reasonable pay and conditions for their work.
Who is entitled to the Hospitality Industry Award?
Coverage
The Hospitality Industry Award applies to both employers and employees working in the hospitality industry. According to the Award, the term “hospitality industry” encompasses the following:
- All types of tourist or residential accommodation including hotels, motels, serviced apartments, resorts and caravan parks;
- Bars and pubs;
- Caterers;
- Casinos;
- Nightclubs, function areas, convention facilities and restaurants that are connected with an employer covered by the Hospitality Award (e.g. a restaurant or a nightclub at a hotel).
Types of employment
An employee covered by this award must be one of the following:
- A full-time employee who is engaged to work an average of 38 ordinary hours per week(See clause 15.1 for rostering patterns);or
- A part-time employee who is engaged to work at least 8 and fewer than 38 ordinary hours per week (or, if the employer operates a roster, an average of at least 8 and fewer than 38 hours per week over the roster cycle);or
- A casual employee who is engaged on an irregular or intermittent basis, with no expectation of ongoing employment.
The Award does not generally cover
- Clubs registered or recognised under State or Territory legislation;
- Businesses covered by the Fast Food Industry Award 2010, the Registered and Licensed Clubs Award 2010, or the Restaurant Industry Award 2020;
- Boarding schools, residential colleges, hospitals, orphanages, councils or local government bodies, catering by a restaurant business or aged care facility, theme parks, in-flight catering businesses or roadhouses that sell petrol;
- Contract security, gardening or maintenance provided by a business that isn’t primarily in the hospitality industry
How is the shiftwork arranged in the Hospitality Industry Award?
Shiftworker
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Hours of Work
Employment type |
Ordinary hours per week | Minimum daily hours |
Maximum daily hours |
Full-time |
38 hours per week | 6 hours | 11.5 hours |
Part-time |
8 to less than 38 hours | 3 hours |
11.5 hours |
Casual | No guaranteed hours | 2 hours |
12 hours |
Breaks
Hours worked per shift |
Breaks |
More than 5 hours and up to 6 |
Elective unpaid meal break of up to 30 minutes in accordance with clause 16.4—Request for unpaid meal break. |
More than 6 hours and up to 8 |
An unpaid meal break of no less than 30 minutes (to be taken after the first 2 hours of work and within the first 6 hours of work). |
More than 8 hours and up to 10 |
An unpaid meal break of no less than 30 minutes (to be taken after the first 2 hours of work and within the first 6 hours of work). One 20 minute paid rest break (may be taken as two 10 minute paid rest breaks). |
More than 10 hours |
An unpaid meal break of no less than 30 minutes (to be taken after the first 2 hours of work and within the first 6 hours of work). Two 20 minute paid rest breaks. |
How are wages and allowances calculated in the Hospitality Industry Award?
Minimum rates
Employee classification | Employee stream and grade | Minimum weekly rate
(full-time employee) |
Minimum hourly rate |
Introductory level |
|
$859.30 | $22.61 |
Level 1 |
|
$882.80 |
$23.23 |
Level 2 |
|
$914.90 |
$24.08 |
Level 3 |
|
$945.00 |
$24.87 |
Level 4 |
|
$995.00 |
$26.18 |
Level 5 |
|
$1057.40 |
$27.83 |
Level 6 |
|
$1085.60 |
$28.57 |
Overtime rates
The overtime rate payable to an employee depends on the time at which the overtime is worked:
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% |
RDO(Rostered day off) |
200% |
Penalty rates
When an employee works ordinary hours on the following days, they are entitled to the following penalty rates:
Time of ordinary hours worked |
Full-time and part-time employees
(% of minimum hourly rate of pay) |
Casual employees
(% of minimum hourly rate of pay; inclusive of casual loading) |
Monday to Friday – 7.00 am to 7.00 pm |
100% | 125% |
Monday to Friday – 7.00 pm to midnight |
100% plus $2.62 per hour or part of an hour | 125% plus $2.62 per hour or part of an hour |
Monday to Friday—midnight to 7.00 am | 100% plus $3.93 per hour or part of an hour |
125% plus $3.93 per hour or part of an hour |
Saturday | 125% |
150% |
Sunday | 150% |
175% |
Public holiday | 225% |
250% |
Allowance
All-purpose allowances | All purpose allowances are included in rate of pay when calculating any penalties, loadings or payment while on annual leave |
Fork-lift driver allowance
(All-purpose allowance) |
$0.36 per hour
Part-time/casual drivers employed prior to 23 January 2020 are paid an additional allowance of:$2.70 per day (up to a maximum $13.49 per week) |
Meal allowance | $13.95
Paid when full-time/part-time employee works more than 2 hours overtime |
Tool and equipment allowance | $1.86 per day or part day (maximum $9.11 per week)
For cooks or apprentices required to provide their own tools, or reimburse for utensils required for the employee to work. |
Special clothing allowance | Wear special clothing
Reimburse when required to wear special clothing not supplied by the employer. Laundering If responsible for laundering special clothing, then a weekly allowance amount is agreed between the employer and employee, or the employee is reimbursed for the laundering costs. If Catering employee
If Motel employee
|
Motor vehicle allowance | $0.85 per kilometre |
Working late | Employer pays for reasonable cost of transport when employee finishes work at time when it is unreasonable for them travel by usual means home |
Working early | Employer pays for reasonable cost of transport when employee starts work at time when it is unreasonable for them travel by usual means home |
Working away from usual place of work | When full-time or part-time employees are required to work 80+ kilometres away from their usual place of work, the employer pays for reasonable fare for travel from the employee’s usual place of work to the new place of work. |
Airport catering travel allowance | $7.28 per day of work for airport catering employee |
First aid allowance | $10.79 per week – full-time employee
$2.16 per day (maximum $10.79 per week) – part-time/casual employee |
Airport catering supervisory allowance
(All-purpose allowance) |
For employee of an airport catering employer required to supervise other employees:
|
Split shift allowance | For full-time or part-time employees who work split shifts on any day:
|
Overnight stay allowance | $53.97 per overnight stay + 150% of ordinary rate for work performed of more than one hour in duration during an overnight stay.
When an employee is required to stay overnight at employers premises to assist guests outside ordinary business hours. |
How is the leave managed in the Hospitality Industry Award?
In the Hospitality Industry Award, leave entitlements for employees are determined by the National Employment Standards (NES) and the classification of the employee.
Annual leave
Annual leave is provided for in the NES. It does not apply to casual employees.
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Personal Leave
Personal leave includes sick leave and carer’s leave that accumulates each year.
- Full-time employees are entitled to 10 paid days per year;
- Part-time employees entitled to pro rata 10 days each year; and
- Casual employees are entitled to unpaid carer’s leave.
Public holidays
Public holiday entitlements are provided for in the NES.Employees and employers can agree to substitute another day or part-day for a public holiday or part-day public holiday under the National Employment Standards (NES).
- If a full-time employee’s rostered day off or accrued day off falls on a public holiday, the employer must either pay the employee an extra day’s pay, give them an alternative day off within 28 days, or give them an additional day’s annual leave.
- For part-time employees, if they are scheduled to work on a public holiday, they are entitled to be absent from work and must be paid for the ordinary hours they were scheduled to work.
How to keep in compliance with the Hospitality Industry Award?
To comply with the Hospitality Industry Award in Australia, businesses in the hospitality industry can follow:
Minimum wage | Employers must pay their employees at least the minimum wage set by the Fair Work Commission. |
Superannuation | Employers are obligated to make superannuation contributions on behalf of their eligible employees, which includes calculating and paying the correct amount on time. |
Taxation | Businesses must accurately calculate and withhold income tax from employee wages, regularly passing the amount to the ATO. |
Record-keeping | Employers are required to maintain comprehensive records relating to employee pay, taxes, superannuation and entitlements |
How can Workstem assist you?
Workstem is a one-stop payroll & HR platform with an award interpretation module and customised attendance formulas that ensure hospitality employers stay compliant with Fair Work regulations. The platform simplifies HR processes, reduces administrative burdens, and offers a user-friendly interface for small businesses and large enterprises alike.
Experience the benefits of Workstem for yourself!