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EMPLOYMENT RELATIONS with Wesley Davey CHANGES TO PART-TIME AND CASUAL EMPLOYMENT IN THE HOSPITALITY INDUSTRY (GENERAL) AWARD 2010 (HIGA) QHA REVIEW | 32 Changes to part-time and casual employment in the HIGA arose from the Fair Work Commission’s four yearly review of modern awards came into effect on 1 January 2018. The changes to part-time employment, pursued by the AHA, QHA’s national body, make part-time employment more flexible and a viable alternative to casual employment. Existing provisions requiring set hours, starting and finishing times and days have been replaced. Meanwhile, the change to casual employment is the introduction of overtime for casual employees. This was pursued by United Voice. WHAT ARE THE KEY POINTS ON THE NEW PART-TIME PROVISIONS IN THE HIGA? • Employer and employee must agree in writing on a guaranteed minimum number of hours between eight hours and 38 hours per week (or an average of if using a roster cycle). • Employer and employee must also agree on the days and times that the employee is available to work (the availability) the guaranteed hours. • Employers must ensure the employee gets two days off each week. • If an employee is working more than the guaranteed hours, employers should make sure that those hours are rostered and within the employee’s availability, this way those hours will not be considered overtime (except if above 38 for the week or 11.5 in a day). • If an employer needs an employee to work additional hours after the roster has been posted, a discussion should be had with the employee about mutually agreeing to change the roster. For more information contact the Employment Relations Department or download our “Part time changes in the HIGA” fact sheet from qha.org.au. WHAT ARE THE KEY POINTS ON CASUAL OVERTIME? • Overtime applies where a casual works more than 12 hours in a day or shift, or after 38 hours in a week (or the average of 38 hours over a roster cycle). • Casual overtime is inclusive of the 25% casual loading, therefore to calculate overtime at all times, including on the weekend, apply the relevant overtime percentage, either 150% or 200%, to the permanent Monday to Friday base rate of pay applicable to the employee’s classification. • If casual hours fluctuate from week to week, employers could consider introducing a four-week roster cycle for averaging casuals’ hours. By doing this, overtime would only apply when an employee has worked more than 152 hours over the four weeks (provided there have not been any 12 hours plus days/shifts). • If overtime is going to occur, then the best time is when the difference between the ordinary rate and overtime rate is at its lowest. For example, the Sunday rate for a casual F & B grade 3 is $35.37 and the double time rate is $40.42. For more information contact the Employment Relations Department or download the “Casual Overtime in the HIGA fact sheet” from qha.org.au.
Wesley Davey EMPLOYMENT RELATIONS EXAMPLE OF POTENTIAL SAVINGS IN UTILISING PART-TIME EMPLOYEES INSTEAD OF CASUAL Food & Beverage grade 3 working 30 hours a week from Monday to Friday, between 7:00am and 7:00pm over a 12 month period CASUAL EMPLOYEE 30 x $25.26 (per hour) x 52 weeks =$39,405.60 PART-TIME EMPLOYEE ANNUAL COST 30 hours x $20.21 per hour x 46 weeks PLUS • Annual leave (4 weeks) • Annual leave loading (17.5%) • Personal/Carer’s leave (2 weeks/30 hours) • Cost of replacement casual to cover annual leave • Cost of replacement casual to cover Personal/Carer’s leave = $27,889.80 = $2,425.20 = $424.41 = $1,212.60 = $3,031.20 = $1,515.60 TOTAL ANNUAL COST = $39,405.60 TOTAL = $36,498.81 In this example an employer would save $2,906.79 over 12 months if employing a part-time employee instead of a casual employee. FURTHER INFORMATION Financial QHA members seeking more information or wishing to discuss a specific matter related to how the team can assist are encouraged to contact the Employment Relations Department for a confidential discussion. Non QHA members can also obtain advice and assistance from the team for a nominal consultancy fee. Contact the Employment Relations Department on 07 3221 6999 or at er@qha.org.au. QHA REVIEW | 33
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