Unlike previous years, the Fair Work Commission’s (FWC) annual award wage increases have been rolled out in 3 stages this year. The 2.5% increase has already been introduced to those industries least affected by the pandemic and general retail, but, from 1 November, the increase will apply to 21 additional awards.
When the staged approach was first announced in June, many businesses were preparing to shut their doors amid health restrictions.
A lot has happened since then, so we wanted to provide a gentle reminder about the impending stage 3 award wage increases about to come into effect.
Who does it apply to and when do I need to take action?
For the industries deemed to be most impacted by the COVID-19 health restrictions, including the hospitality, restaurant, hair and beauty, and fitness sectors, the FWC offered relief in the form of delaying the award increase.
But from the first full pay period on or after 1 November, the increase will be mandatory for all staff paid the minimum award wages.
Added flexibility for hospitality operators
The FWC also introduced a loaded rate arrangement within the hospitality award in early September. That means employers can elect to combine a range of entitlements into a single loaded rate of pay for full-time adult staff classified as Level 3 or above.
Under the loaded rate arrangement, some overtime, penalty rates, and split shift allowances are replaced by the loaded rate. But before offering the loaded rate to eligible employees, employers need to consult with their employees first, then detail the arrangement in writing and provide the employee with notice.
Once in place, employers need to keep a copy of the arrangement on hand and the same applies for records if its terminated. An employer can also change the arrangement by providing two weeks’ written notice.
