The latest changes in the minimum pay award is a timely reminder for all hospitality venues to ensure their HR systems and processes are in compliance with the requirements.
The changes commenced 1st July 2015, meaning that venues now need to review their current practices to ensure the new award rates of pay are applied and they are paying employees correctly.
To simplify this, DWS have outlined the key HR elements that all hospitality venues must be aware of for HR success:
National Minimum Wage Order
The new national minimum wage increased by 2.5% to $656.90 per week or $17.29 per hour, based on a 38-hour week. Corresponding wage increases contained in all modern awards need to have taken effect from the first full pay period on or after 1 July 2015.
Similarly employers need to also confirm if there have been any increases made to allowances payable under their relevant award of agreement.
For more information including a summary of annual national wage order determinations since 1 July 2010 click here.
Fair Work Information Statement (FWIS)
Under Section 125 of the Fair Work Act, and employer must give each employee the Fair Work Information Statement before, or as soon as practicable, after the employee starts. A copy of the 1 July 2015 FWIS is now attached. The main change within being an increase to the high income threshold.
High Income Threshold
The high income threshold is adjusted annually on 1 July and does not include superannuation guarantee contributions. As from the 1 July 2015, the high income threshold is $136,700 per year.
Unfair Dismissal Applications
To be eligible to make an unfair dismissal application you must earn less than the high income threshold.
If you earn more than the high income threshold, then at least one of the following must apply in order for you to be eligible to make an unfair dismissal application.
a. You must be covered by an award, or
b. You must be covered by an enterprise agreement.
If an unfair dismissal claimant is not covered by an award or enterprise agreement, and was earning greater than the high income threshold at the time of their dismissal, then the employer may have a defence as to jurisdiction to the claim. However, any such defence must still be heard and argued before a representative of the Fair Work Commission.
Registered & Licensed Club Award 2010
The Registered & Licensed Clubs Award 2010 is one of the few modern awards which includes a specific manager classification. As such a Manager employed in a Club covered by this Award, would potentially be eligible to make an unfair dismissal application.
HR Health Check
It is important for all employers to understand their pay and wage obligations. Just because you know that your wage arrangements were accurate 12-months ago, does not mean you have continued to maintain compliance.
For a current and comprehensive understanding of the obligations and minimum standards which apply to your workforce, contact DWS Safety & Compliance on (07) 3878 9355 or firstname.lastname@example.org for a HR Health Check.