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Important changes to award wages in hospitality, tourism and aviation

29 September 2022
Important changes to award wages in hospitality, tourism and aviation

It is important that Labour hire providers and hosts are across recent changes to a number of awards covering the hospitality, tourism and aviation sectors. These changes include increases to minimum wages and new rules for annualised wage arrangements for restaurant, café and hospitality workers.

Changes to minimum adult wages

From the first pay period on or after 1 October, minimum adult wages will change under the following awards:

  • Air Pilots Award [MA000046]
  • Aircraft Cabin Crew Award [MA000047]
  • Airline Operations - Ground Staff Award [MA000048]
  • Airport Employees Award [MA000049]
  • Airservices Australia Enterprise Award 2016
  • Hospitality Industry (General) Award [MA000009]
  • Registered and Licensed Clubs Award [MA000058
  • Restaurant Industry Award [MA000119]
  • Alpine Resorts Award [MA000092]
  • Marine Tourism and Charter Vessels Award [MA000093]

Visit the Fair Work Ombudsman website for more information.

Annualised wage arrangements for restaurant, café and hospitality workers

From 1 September, annualised wage arrangements for the Restaurant Industry Award and Hospitality Industry (General) Award changed to include:

  • rules about what award entitlements can be included in an annualised wage arrangement
  • new rules about the maximum number of hours that attract overtime or penalty rates that an employee can work in a roster cycle and be included in their annualised wage (called the ‘outer limits’)
  • what needs to be included in a written agreement for an annualised wage arrangement
  • extra record-keeping rules; and
  • new rules about ending an annualised wage arrangement.

These changes only apply to full-time employees covered by these awards. They do not apply to people employed as Managerial Staff (Hotels) under the Hospitality Award.

Only a limited number of industries are allowed to use annualised salaries in accordance with their awards. Some employers choose to use annualised salaries to simplify payroll and they need to be aware of additional obligations including keeping a record of the hours worked and doing an annual reconciliation to make sure employees are paid at least as much as they would have received if they weren’t on the annualised wage arrangement. This is to ensure employees are not disadvantaged by this arrangement.

LHA recommends that you check the Fair Work Ombudsman’s website for useful advice before putting these arrangements into place.