Pay rates in the Hair and Beauty Industry Award for casual employees performing work on the weekend are set to increase following a decision of the Fair Work Commission last week.

The Hair and Beauty Award currently provides that casuals are paid the same as full-time and part-time employees for ordinary hours performed on weekends. This was deemed to be unfair, given that casual employees do not enjoy many benefits that permanent employees do, including more job security and various entitlements (notice periods, redundancy payments, most forms of paid leave, etc).

The timing of the pay increases is yet to be decided, as the Fair Work Commission recognised that many businesses in the sector are being adversely impacted by COVID lockdowns. The proposal is that the increases will be gradually phased in over the next few years (with the final increases being at the end of 2023).

 

What does the Hair and Beauty Award currently say?

The Award currently states as follows:

‘31.2 Overtime and penalty rates

[…]

(c) Saturday work

A loading of 33% will apply for ordinary hours of work for full-time, part-time and casual employees within the span of hours on a Saturday.

(d) Sunday work

A 100% loading will apply for all hours of work for full-time, part-time and casual employees on a Sunday.’

 

What is going to change?

It is proposed to add an extra 25% to the weekend penalty rates for casual employees by deleting the above clauses and replacing them with the following:

‘(c) Saturday work

(i) a loading of 33% will apply for ordinary hours of work for full-time and part-time employees within the span of hours on a Saturday.

(ii) subject to clause 31.2(e)(i), a loading of 58% (including casual loading) will apply for ordinary hours of work for casual employees within the span of hours on a Saturday.

(d) Sunday work

(i) a loading of 100% will apply for all hours of work for full-time and part-time employees on a Sunday.

(ii) subject to clause 31.2(e)(ii), a 125% (including casual loading) will apply for all hours of work for casual employees on a Sunday.’

 

What will happen next?

Interested parties have 14 days to comment on the proposal. We will of course update you as soon as the timing for the increases are finalised.

 

 

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The information provided in these blog articles is general in nature and is not intended to substitute for professional advice. If you are unsure about how this information applies to your specific situation we recommend you contact Employment Innovations for advice.

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