Preliminary advice to members in relation to significant changes within the HIGA effective from 1 January 2017:
FLEXIBLE PART-TIME EMPLOYMENT TO BEGIN FROM 1 JANUARY 2018
For the first time since the late 1990’s, flexible part-time employment will be available under a hospitality industry award from 1 January 2018.
As previously advised, the Fair Work Commission handed down a landmark decision earlier this year as part of its review of modern awards, accepting arguments put by the AHA that the current part-time employment provision in the Hospitality Industry (General) Award 2010 was ineffective, of no utility to the industry, and resulted in increased levels of casualisation.
The new part-time employment provision will require an employer and the part-time employee to agree to:
(i) A number of ‘guaranteed’ hours to be provided to the employee each week which must be at least 8 hours and less than 38 hours; and
(ii) The days of the week, and periods within those days, when the employee will be available to work the guaranteed hours.
The part-time employee must be provided with at least two days off each week.
As an alternative to providing guaranteed hours on a weekly basis, the employer and the part-time employee may agree to the guaranteed hours being worked over a roster cycle.
To assist employers in dealing with trading fluctuations and other matters such as covering periods of leave, an employer may roster additional hours within the part-time employee’s agreed availability. Subject to the overtime parameters set out below, the additional hours will be payable at the relevant rate of the day.
Overtime rates will only apply when the part-time employee works in excess of their rostered hours, in excess of the maximum daily hour’s provisions or in excess of 38 hours per week or an average of 38 hours per week over the roster cycle.
OVERTIME RATES TO APPLY TO CASUAL EMPLOYEES FROM 1 JANUARY
Overtime rates for casual employees who work long hours in a day or over a week or roster cycle will commence on 1 January 2018.
As previously advised, the Fair Work Commission decided to vary the Hospitality Industry (General) Award 2010 (“the HIGA”) to introduce overtime rates as part of its review of modern awards.
When will the variation take effect?
From the first full pay period commencing on or after 1 January 2018. For example, if you operate a weekly pay period which commences on a Monday, the variation will commence on 1 January 2018.
When will a casual employee be entitled to overtime rates?
A casual employee will be entitled to overtime rates when the employee works:
(i) In excess of 12 hours per day or per shift (excluding breaks); or
(ii) In excess of 38 hours per week.
If the casual employee works in accordance with a roster, overtime rates will apply for work in excess of an average of 38 hours per week over the roster cycle (which may not exceed 4 weeks). For example, a casual employee is working in accordance with a fortnightly roster. If in the first week they work 50 hours, and in the second week they work 26 hours, no overtime would be payable as they have worked an average of 38 hours per week over the roster cycle.
What are the casual overtime rates?
The overtime rates for casual employees are the same as the overtime rates for full-time and part-time employees:
Monday-Friday:
150% of their ordinary hourly rate for the first two hours of overtime; and 200% of their ordinary hourly rate for the rest of the overtime;
Between midnight Friday and midnight Sunday:
200% of their ordinary hourly rate.
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The AHA (Vic) will be publishing further materials to assist members in understanding and implementing these variations to the HIGA prior to 1 January 2018.
For further Information or if you wish to discuss please do not hesitate to contact the undersigned on 03 9654 7100.
Best regards,
John Sweetman
Workplace Relations Advisor