Hospitality Award to Take On Loaded Rates

On 28th July 2021, The Fair Work Commission (FWC) provisionally announced certain changes to the hospitality award in support of employer’s push for a single and unquantified rate that will roll up overtime and penalty payments into loaded rates for full-time employees classified at level 3 and above.

The Commission concluded that it would be in Australia’s best economic interests for the FWC to amend several priority modern awards in certain sectors hardest hit by the fallout of lockdowns and lack of tourism in an effort to provide increased flexibility to employers.  The awards have been identified as those applying to employees within the hospitality, restaurant and licensed club sectors. 

This decision was based on a better off overall test (BOOT) and in consultation with the Australian Hotels Association (AHA) and the United Workers Union, which determined that the sector’s highest paid workers would not be worse off under a loaded rates award changes.

“It seems to us that the quantum of loaded rates and the loaded rate parameters ensure that workers on Loaded Rates Arrangements are paid the same or more than they would have been paid if the loaded rate did not apply,” said FWC President Iain Ross, Deputy President Richard Clancy and Commissioner Michelle Bissett. 

This would make it simpler for employers through a simplified pay arrangement in the form of loaded rates that will minimise the risk from existing complex pay penalties as well as enables workers to do very broad jobs without leaving them worse off.