HSA February 2021

• General Retail Industry Award 2020
The Minister in his letter to FWC President Justice Ross identified
that as a result of stakeholder meetings held between employer
groups and unions during the height of the COVID-19 Pandemic
there were a number of award flexibility measures that ‘could
prove critically important for providing businesses in the most
distressed part of the economy with the confidence to increase
hiring during the recovery’. The two key areas included:
• To potentially simplify pay arrangements in the form of ‘loaded
rates’ and/or ‘exemption rates’ designed to reduce the cost of
administrative burden for employers and address existing pay
rate complexities.
• Further streamlining of present classification structures so that
they are clearer, easier to understand and simpler to apply.
Nationally the AHA has put forward initial submissions and
proposals to the FWC to vary the Hospitality Industry (General)
Award 2020 (‘HIGA’). The AHA has submitted four proposals in
relation to the HIGA including:
• Consolidation of Junior Employee Classifications Rates
• Simplification of hours of work arrangements
• Simplification of late night/early morning penalties; and
• Introduction of loaded rates
In relation to loaded rates the AHA has proposed the introduction
of 6 loaded rates for full-time employees to simplify the
administration and understanding of entitlements and payroll for
employers and employees. The loaded rates are based on the
base hourly rate for the respective classification plus a specific
loading (see table below).
40 HOUR PROPOSALS
A Monday to Friday 40 hrs 10% loading on base rate
B Monday to Saturday 40 hrs 19% loading on base rate
C Monday to Sunday 40 hrs 28% loading on base rate
45 HOUR PROPOSALS
D Monday to Friday 45 hrs 20% loading on base rate
E Monday to Saturday 45 hrs 25% loading on base rate
F Monday to Sunday 45 hrs 35% loading on base rate
In each case the loaded rate would compensate the employee for
work performed:
• Between 7am-Midnight (Mon to Fri)
• Saturday (Max of 10 hrs)
• Sunday (Max of 10 hrs)
• Overtime up to the relevant 40 or 45 hour range
• Split Shift allowance
• Tool allowance
• Buffer of $10 per week
Work performed on public holidays or in excess of daily/weekly
limits is proposed to be paid at the applicable award overtime or
public holiday rate. The AHA will keep members abreast of the
developments in this major case.
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