The hospitality sector is witnessing a worker-led revolution in 2025, with major union wins securing groundbreaking conditions through Enterprise Bargaining Agreements (EBAs). From 4-day work weeks to fairer tips pooling systems, these victories are setting new standards across Australian hotels, restaurants, and cafes.
The Importance of EBAs in Hospitality
Enterprise Bargaining Agreements (EBAs) play a crucial role in outlining the terms and conditions of employment within the hospitality industry. A well-negotiated EBA can lead to better wages, enhanced employee rights, and overall improved working conditions for hotel workers. The HSU’s accomplishments in 2025 are a testament to the power of collective action and the ongoing investigation into the best EBAs for hotel workers.
2025’s Biggest Hospitality EBA Breakthroughs
4-Day Work Week Trials (With Full Pay)
The HSU (Health Services Union) negotiated Australia’s first 32-hour work week for hotel staff at 5-star properties in Sydney and Melbourne. Key wins:
- Same pay for reduced hours (productivity-based KPIs)
- Overtime penalties kick in after 8 hours/day
- 3-day weekends for better work-life balance
*Housekeepers reported 30% lower turnover after the trial” – HSU Case Study
Transparent Tips Pooling Agreements
New EBAs now mandate:
- Digital tip tracking (no more cash-handling disputes)
- Equal distribution between front/back-of-house
- Weekly payouts (vs. monthly)
Example: Crown Sydney’s EBA guarantees tips appear on payslips via integrated systems like Workstem.
Wage Increases Beating Inflation
2025’s top EBAs secured:
- 6.5% annual raises (vs. 3.5% in the Hospitality Award)
- Back Pay for casuals in landmark underpayment rulings
How These Wins Affect Your Business
For employers, modern EBAs require:
- Automated compliance tools to handle complex pay rules (e.g., Workstem’s EBA-specific payroll modules)
- Real-time reporting on tips, overtime, and roster changes
- Union communication portals built into workforce platforms
How Workstem Helps Hospitality Industry Businesses
Simplify award interpretation and payroll processing with Workstem, the all-in-one workforce management & payroll software designed for every industry. Our system supports 122+ modern awards & 34 EAs, including the Hospitality Industry Award 2025, and keeps you up-to-date with changes in wage rates, penalty rates, and overtime rules.
Managing payroll under the Hospitality Industry Award 2025 can be complex. Workstem’s workforce management software ensures:
- Accurate award interpretation
- Automated penalty rates & overtime calculations
- Compliant payslips & record-keeping
- Seamless integrations with Xero, NetSuite, and more
Choose from our Standard or Advanced plan to suit your business needs, and stay Fair Work compliant with confidence.
Book a free demo with our payroll experts and experience how Workstem can streamline your payroll and workforce operations.
FAQs About the Hospitality Industry Award 2025
Q1: What is the Hospitality Industry Award 2025?
A1: The Hospitality Industry (General) Award 2025 (MA000009) sets minimum pay rates, penalty rates, and employment conditions for workers in hotels, restaurants, cafés, pubs, and clubs across Australia. It’s updated annually by the Fair Work Commission.
Q2: What are the key changes in the 2025 Award?
A2: Minimum wage increase: ~3.5% (projected) for full-time, part-time, and casual employees;penalty rates: Unchanged for weekends/public holidays, but base rates rise;casual loading: Remains at 25%.
Q3: Does the Award apply to casual workers?
A3: Yes. Casual employees receive: base rate + 25% loading (e.g., $24.05 + $6.01 = $30.06/hour); additional penalty rates for weekends/nights.
Q4: Are breaks and overtime included?
A4: Breaks: 10-minute paid rest breaks per 4-hour shift; overtime: Paid after 38 hours/week (full-time) or 10 hours/day.
Q5: Can Workstem help with casual employee management?
A5: Absolutely. Workstem supports casual loading, dynamic rosters, and real-time tracking to ensure casual workers are paid correctly and fairly under the award.
Q6: Is Workstem compliant with Fair Work and STP2?
A6: Yes, Workstem is fully compliant with Fair Work obligations and Single Touch Payroll Phase 2 (STP2), ensuring seamless reporting to the ATO.
Read More：
Hospitality Industry (General) Award Guide [MA000009]
Updated Hospitality Award Rates: What You Need to Know
Restaurant Award vs Hospitality Award: What’s the Difference?
