In Australia’s dynamic food and accommodation sectors, understanding which modern award applies to your business is crucial for compliance, cost control, and workforce planning. Two of the most commonly confused awards are the Restaurant Industry Award and the Hospitality Award (also known as the Higa Award). This guide unpacks their scopes, key distinctions, and practical tips for Australian employers and employees.
What Is the Restaurant Industry Award?
The Restaurant Industry Award (MA000119) governs businesses that primarily sell food and beverages for on-premises consumption. This includes:
- Stand-alone restaurants, cafés offering table service and baristas in mainly eat-in venues
Reception centres, tea rooms, night clubs, and roadhouses operated independently of petrol stations - Catering by a restaurant business
- Associated clerical, security, and storeroom roles
Coverage extends to labour hire businesses placing staff in the restaurant industry. Minimum pay rates, penalty rates, allowances, and classification structures are all set out in MA000119.
What Is the Hospitality Award (HIGA Award)?
The Hospitality Award (MA000009), often called the HIGA award, covers a broader spectrum of the hospitality sector, including:
- Tourist and residential accommodation (hotels, motels, serviced apartments, resorts, caravan parks)
- Wine bars, taverns, casinos, caterers
- Nightclubs, convention facilities, and restaurants operated by a covered hospitality employer
- Labour hire placements in hospitality
Unlike the restaurant industry award, the hospitality award encompasses both accommodation and hospitality services, providing a wider classification and allowance framework to reflect varied duties and customer-service settings.
Key Differences at a Glance
|
Aspect |
Restaurant Industry Award (MA000119) | Hospitality Award (HIGA, MA000009) |
|
Primary focus |
Food & beverage service on-premises | Accommodation, gaming, wine bars, resort services |
|
Covered venues |
Restaurants, cafés, reception centres |
Hotels, resorts, casinos, wine bars, hotel-linked restaurants |
| Employee scope | Waitstaff, chefs, baristas, kitchen hands |
Front office, housekeeping, banquet, casino staff |
| Exclusions | Hotel-run restaurants, clubs under state legislation |
Independent cafés/restaurants not linked to a hotel |
Why Does This Matter for Your Business?
Choosing the correct award directly impacts:
- Payroll accuracy: Ensuring correct wage rates, penalty rates (e.g., weekends, late shifts), and allowances (e.g., meal, uniform)
- Compliance: Avoiding underpayment claims – recent high-profile settlements (e.g., a private entertainment enterprise’s $19.25 million payout to former employees) highlight the cost of misclassification.
- Employee satisfaction: Transparent and accurate entitlements reduce turnover and grievances.
From 1 July 2025, minimum wage and award rates will rise by 3.5%, so confirming which award applies before updating payroll systems is essential.
How to Confirm Your Award?
Use the Fair Work Commission’s “Find my award” tool or consult an HR specialist to determine coverage based on your business activities and organisational structure.
How Does Workstem Help?
Simplify your payroll process and ensure accurate pay rates with Workstem’s automated payroll system. Our pre-built modern award interpretation software covers 122+ awards and 34 EBAs, and keeps you up-to-date with penalty rates and other award entitlements.
Choose between our Standard and Advanced plans, and enjoy a range of benefits such as Fair Work compliance, an employee self-service App, and custom rule set. We have integrated our system with Xero and NetSuite as well to bring you a complete HR SaaS solution for your business.
Book a free demo with our payroll experts. Experience the efficiency and accuracy of Workstem today!
FAQs About the Restaurant Industry Award
Q1: Can a single venue be covered by both awards?
A1: Yes. A hotel’s in-house restaurant will fall under the Hospitality Award, while a stand-alone café down the street is under the Restaurant Industry Award.
Q2. What if my business offers both take-away and dine-in services?
A2: If the primary service is on-site dining, you’ll likely use the Restaurant Industry Award; high-volume takeaway may instead fall under the Fast Food Award.
Q3. How often do award rates change?
A3: Award rates are reviewed annually by the Fair Work Commission, typically effective from 1 July each year.
Q4. Where can I find the full award documents?
A4: Download MA000119 and MA000009 from the Fair Work Commission’s website or access pay guides via the Fair Work Ombudsman.
Read More:
Updated Restaurant Industry Award Pay Rates: What You Need to Know
