Increase in weekend wages in hair and beauty industry

Increase in weekend wages in hair and beauty industry

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Increase in weekend wages in hair and beauty industry

award rate Fair work casual loading

The Fair Work Commission recently decided to increase penalty rates for weekend work performed by casual employees under the Hair and Beauty Award.

Casual weekend penalty rates will increase in 5 instalments starting from 31 January 2022 and finishing on 31 December 2023. From 3 November 2021 to 30 January 2022, casuals will continue to be paid their usual weekend penalty rate.

The penalty rate applying to ordinary hours worked on Saturdays inclusive of the casual loading is:

  • From 3 November 2021: 133%
  • From 31 January 2022: 138%
  • From 30 April 2022: 143%
  • From 31 December 2022: 148%
  • From 30 April 2023: 153%
  • From 31 December 2023: 158%

The penalty rate applying to ordinary hours and overtime hours worked on a Sunday inclusive of the casual loading is:

  • From 3 November 2021: 200%
  • From 31 January 2022: 205%
  • From 30 April 2022: 210%
  • From 31 December 2022: 215%
  • From 30 April 2023: 220%
  • From 31 December 2023: 225%

It should also be noted that award rates in the Hair and Beauty Award 2020 have been increased by 2.5% effective from 1 November 2021 in line with this year’s Annual Wage Review decision by the Fair Work Commission. This was delayed from 1 July 2021 due to the impact of COVID.

Further increases in award rates as a result of Annual Wage Reviews can be expected to apply from 1 July each year in line with the provisions of the Fair Work Act.

If you have any queries, please contact us on 0421 592 541 or at enquiries@ridgelinehr.com.au.

CONTACT US

Ridgeline Human Resources Pty Ltd
Abn : 24 091 644 094

enquiries@ridgelinehr.com.au

6 Ellesmere Ave, Croydon Victoria 3136

Peter Maguire : 0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

New superannuation stapling rules take effect from 1/11/21

New superannuation stapling rules take effect from 1/11/21

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New superannuation stapling rules take effect from 1/11/21

superannuation ATO

From 1 November 2021 the new superannuation stapling rules came into effect. These rules have been designed to reduce the chance of employees accumulating multiple superannuation accounts when they move between jobs and hence paying multiple sets of fees and insurance premiums.

What are the new super stapling rules?

From 1 November 2021, every employee’s active superannuation accounts will be “stapled” to them. This means that, in the event that they move jobs, the employee’s superannuation accounts that were active on 1 November 2021 will become their default fund at their new job as opposed to the employer nominated fund.

If the employee starts a new job and does not choose their own superannuation fund, the employer must now check with the ATO to see whether that employee has any superannuation funds “stapled” to them. In the event that they do, then employers must use that existing fund rather than their own default fund. If there is more than one fund “stapled” to an employee, then the ATO will use its own set of rules to determine which is the fund that the employer will need to make contributions into.

If an employee hasn’t made a choice of superannuation fund and has no fund “stapled” to them, then employers may enrol them in their own nominated fund.

If you have any queries, please contact us on 0421 592 541 or at enquiries@ridgelinehr.com.au.

CONTACT US

Ridgeline Human Resources Pty Ltd
Abn : 24 091 644 094

enquiries@ridgelinehr.com.au

6 Ellesmere Ave, Croydon Victoria 3136

Peter Maguire : 0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

The third tranche of Awards get pay rise

The third tranche of Awards get pay rise

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The third tranche of Awards get pay rise

In this year’s annual wage review, the Fair Work Commission decided to implement the increases to award wages in three stages.

In the third and final of those stages, the following awards will see minimum rates increased by 2.5% with effect from 1 November 2021:

  • Pilots Award
  • Cabin Crew Award
  • Airline Ground Staff Award
  • Airport Award
  • Alpine Resorts Award
  • Amusement Award
  • Dry Cleaning and Laundry Award
  • Fitness Award
  • Hair and Beauty Award
  • Hospitality Award
  • Live Performance Award
  • Models Award
  • Marine Tourism and Charter Vessels Award
  • Nursery Award
  • Racing Clubs Events Award
  • Racing Ground Maintenance Award
  • Registered Clubs Award
  • Restaurant Award
  • Sporting Organisations Award
  • Travelling Shows Award
  • Wine Award

From this date, employees covered by any of these awards must, at a minimum, be paid the new award rate for ordinary hours.

If employees are paid above the award rates, the increases can be absorbed against over award payments subject to any qualifications that may be included in enterprise agreements or contracts of employment.\

The normal penalties and loadings apply (on top of those minimum rates) for overtime, shiftwork and work on weekends, early mornings, evenings and public holidays.

If you have any queries, please contact us on 0421 592 541 or at enquiries@ridgelinehr.com.au.

CONTACT US

Ridgeline Human Resources Pty Ltd
Abn : 24 091 644 094

enquiries@ridgelinehr.com.au

6 Ellesmere Ave, Croydon Victoria 3136

Peter Maguire : 0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

New Retail Award rules on part-time employment

New Retail Award rules on part-time employment

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New Retail Award rules on part-time employment

Award part-time fair work

The General Retail Industry Award 2020 was varied by the Fair Work Commission with effect from 1 July 2021 in relation to the rules for varying hours of work for part-time employees.

According to that Award, a part-time employee is one who is engaged to work for fewer than 38 ordinary hours per week and whose hours of work are reasonably predictable.

Obligations on engagement

At the time of engaging a part-time employee, the employer must agree in writing with the employee on a regular pattern of work that must include all of the following:

  • the number of hours to be worked on each particular day of the week (the guaranteed hours); and
  • the times at which the employee will start and finish work each particular day; and
  • when meal breaks may be taken and their duration.

Under the Award, such an agreement can be recorded in writing now including through an exchange of emails, text messages or by other electronic means.

Comment: guaranteed hours is a new terminology seemingly designed to fix a base of hours with the potential for flexing up by agreement if needed. The specific recognition of email and texts as valid means of recording agreements is sensible because nowadays that is generally what happens.

Agreements to work additional hours

An employer and an employee may agree to vary the regular pattern of work agreed (i.e. the guaranteed hours) on a temporary or ongoing basis, with effect from a future date or time.

Any such agreement must be recorded in writing (including through an exchange of emails, text messages or by other electronic means):

  • if the agreement is to vary the employee’s regular pattern of work for a particular rostered shift – before the end of the affected shift; and
  • otherwise – before the variation takes effect.

Such an agreement cannot result in the employee working 38 or more ordinary hours per week.

Comment: this provides flexibility for those occasional situations that small businesses in particular can experience where someone is running late or not able to attend work or there is an unexpected increase in customer demand. To cover that, they can ask someone to do some extra hours over and above their guaranteed hours as long as agreement is made before the extra hours have to be worked. Otherwise, any additional hours would be payable at overtime rates.

Changes to regular hours made by employer

An employee’s regular pattern of work as agreed, other than the employee’s guaranteed hours, may be changed by the employer giving the employee 7 days, or in an emergency 48 hours, written notice of the change.

However, the regular pattern of work of a part-time employee must not be changed from week to week or fortnight to fortnight or to avoid any award entitlements.

Comment: this provides some limited ability for an employer to direct variations in hours of work for a part-time employee but cannot result in a reduction in the guaranteed hours (ie the number of hours to be worked on each day of the week). So the hours could be shifted within a day or added to but not decreased. If an employer tries to use this power to avoid making overtime payments on a regular basis, it could result in a claim of breach of award
and underpayment of wages.

Requests for review of guaranteed hours

If an employees’ guaranteed hours are less than the ordinary hours that the employee has regularly worked in the previous 12 months, the employee may request in writing that the employer increase their guaranteed hours on an ongoing basis to reflect the ordinary hours
regularly being worked.

An employee may only make such a request once every 12 months.

The employer must respond in writing to the employee’s request within 21 days and may refuse the request only on reasonable grounds. 

The Award provides an example of this: Reasonable grounds to refuse the request may include the reason that the employee has regularly worked more ordinary hours than their guaranteed hours is temporary—for example where this is the direct result of another employee being absent on annual leave, long service leave or worker’s compensation.

Before refusing a request, the employer must discuss the request with the employee and genuinely try to reach agreement on an increase to the employee’s guaranteed hours that will give the employee more predictable hours of work and reasonably accommodate the
employee’s circumstances.

If the employer and employee agree on an increase to the employee’s guaranteed hours, the employer’s written response must record the agreed increase.

If the employer and employee do not reach agreement, the employer’s written response must include details of the reasons for the refusal, including the ground or grounds for refusal and how the ground or grounds apply.

If the matter is still not resolved, either party can refer it to the Fair Work Commission for conciliation and/or arbitration.

Comment: the process and rules here are similar to those that apply to requests for flexible working arrangements and applications for casual conversion. The bottom line is that any employer who does not act reasonably and follow the rules can find themselves fronting the Fair Work Commission with the potential for orders regarding guaranteed hours of work and possibly remedies for underpayment of wages.

The takeaways

For retail employers, the key lessons are:

  1. Have a sound staffing plan based on a realistic expectation of customer demand and work requirements, adjusting seasonally
  2. Develop positive relationships with your people and find out who has the flexibility to work additional hours if needed at particular times and at short notice
  3. Consider whether all of the compliance work involved in varying a part-time employees’ hours is actually worth it eg if there is little requirement for
    additional hours, it might be easier and more practical just to pay the overtime rate for the additional hours
  4. Consider paying people above award rates in return for a bit of flexibility through a common law contract but ensuring that people would still be better off overall than in literally applying award conditions
  5. If you have casual employees who have been employed with you for 12 months or more (or are likely to be), consider whether they should convert to full-time or part-time and, if part-time, what their guaranteed hours should be.
  6. Make sure that you are maintaining all of the employment records that you are required to under the Award requirements re part-time employment and otherwise as required under the Fair Work Act and Regulations.
  7. If you need assistance in working through this or you run into a disagreement with an employee, get professional help.

 

You can take advantage of our free first consultation on this or any other HR matter by contacting us on 0421 592 541 or enquiries@ridgelinehr.com.au

CONTACT US

Ridgeline Human Resources Pty Ltd
Abn : 24 091 644 094

enquiries@ridgelinehr.com.au

6 Ellesmere Ave, Croydon Victoria 3136

Peter Maguire : 0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

Wage Inspectorate Victoria up and about

Wage Inspectorate Victoria up and about

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Wage Inspectorate Victoria up and about

Wage inspectorate Victoria

Wage Inspectorate Victoria has been in the news lately as the body that will be responsible for administering and enforcing Victoria’s new Wage Theft law which came into effect from 1 July 2021.

Under that legislation, employers who deliberately underpay employees can be fined close on a million dollars and be imprisoned for up to 10 years. But the Inspectorate has been around for a number of years looking after its other regulatory responsibilities in relation to long service leave, child work permits and owner drivers and forestry contractors.

Recently, the Inspectorate undertook the first prosecution for underpayment of long service leave entitlements under the Long Service Leave Act 2018.

The prosecution was against Coles who pleaded guilty to seven criminal charges filed by the Wage Inspectorate, conceding it underpaid 24 former employees $53,710 between October 2019 and April 2020.

It has been reported that the ongoing investigation has since identified underpayments totalling nearly $700,000 to 4,096 employees. So perhaps there might be more to come here.

Coles pleaded that the underpayments were the result of an error but the Wage Inspectorate Commissioner said there was no excuse for Coles' non-compliance, particularly given its access to HR and legal functions.

We can understand the Commissioner’s view – there have been so many underpayment of wages cases involving some of Australia’s largest and/or high profile employers.

So now there are a couple of officers on the block – the Fair Work Ombudsman and Wage Inspectorate Victoria.

So here are a few questions for you:

  1. Are you paying your people correctly and providing them with the correct leave entitlements?
  2. Are you otherwise compliant with National Employment Standards, modern awards, superannuation and long service leave legislation?
  3. Are you keeping the right employment records?
  4. Do you have access to competent advice?

If you have trouble saying “yes” to any of those questions, you might want to take advantage of our free first consultation.

Or perhaps invest in our very affordable Workplace Relations Compliance Assessment ($750 plus GST).

Contact us online at https://ridgelinehr.com.au/contact-us/ or by phone on 0421 592 541.

 

CONTACT US

Ridgeline Human Resources Pty Ltd
Abn : 24 091 644 094

enquiries@ridgelinehr.com.au

6 Ellesmere Ave, Croydon Victoria 3136

Peter Maguire : 0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

2.5% increase to Award wages

2.5% increase to Award wages

Latest News & Events

 

2.5% increase to Award wages

The Fair Work Commission has handed down its decision in the 2020-2021 Annual Wage Review.

The result is a 2.5% increase in the National Minimum Wage taking it to $772.60 per week or $20.33 per hour. This increase flows on to modern awards effective from 1 July 2021 except for the following awards where the Commission has decided to delay the implementation of the increases:

  1. For the General Retail Industry Award 2020, the increases will come into effect on 1 September 2021.
  2. For the following modern awards and modern enterprise awards, the increases will come into operation on 1 November 2021:
  • Air Pilots Award 2020
  • Aircraft Cabin Crew Award 2020
  • Airline Operations – Ground Staff Award 2020
  • Airport Employees Award 2020
  • Airservices Australia Enterprise Award 2016
  • Alpine Resorts Award 2020
  • Amusement, Events and Recreation Award 2020
  • Dry Cleaning and Laundry Industry Award 2020
  • Fitness Industry Award 2020
  • Hair and Beauty Industry Award 2010
  • Hospitality Industry (General) Award 2020
  • Live Performance Award 2020
  • Mannequins and Models Award 2020
  • Marine Tourism and Charter Vessels Award 2020
  • Nursery Award 2020
  • Racing Clubs Events Award 2020
  • Racing Industry Ground Maintenance Award 2020
  • Registered and Licensed Clubs Award 2020
  • Restaurant Industry Award 2020
  • Sporting Organisations Award 2020
  • Travelling Shows Award 2020
  • Wine Industry Award 2020.

Please also remember that the Superannuation Guarantee Charge increases by 0.5% to 10% effective from 1 July 2021 as well.

So here are 4 things that you need to do:

  1. Review rates of pay to ensure that all employees are being paid at or above award rates
  2. If you currently have annualised wage or salary arrangements in place with any employees, review those to ensure that they are compliant with minimum requirements and that both minimum award rates and any setoff award provisions are adequately covered by the annualised wage or salary
  3. Make the required adjustment to superannuation guarantee contributions; and
  4. Review your employment contracts to ensure that they reflect the new minimum rates and superannuation guarantee and that they have picked up on any variations to the Fair Work Act (such as the recent casual employment variations) and modern awards that have occurred in recent times (there have been quite a number of variations to modern awards in the last 12 months as part of the modern award review process).

If you need assistance with any of this, please do not hesitate to contact Liam Maguire on 0421 592 541 or at liam@ridgelinehr.com.au.

CONTACT US

Ridgeline Human Resources Pty Ltd
Abn : 24 091 644 094

enquiries@ridgelinehr.com.au

6 Ellesmere Ave, Croydon Victoria 3136

Peter Maguire : 0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH