Clubs are being warned to make sure they are paying employees the correct rate with the several delayed hospitality awards coming into effect from 1 October 2022. While many clubs have already implemented the Hospitality Industry (General) Award 2020, the Registered and Licenced Clubs Award 2020, and the Restaurant Industry Award 2020, the results of these awards now need to come into play in the next pay cycle.
Now is also the perfect time for club managers to conduct an annual review of their workforce to ensure employees are being paid in line with the award, rather than simply updating pay rates.
“The first step towards ensuring that you are paying employees correctly is to check that you have them classified on the right level under the relevant award,” says Leanne Robertson, Payroll Implementation and Compliance Specialist at KeyPay. “Remember that classifications are based on the duties the employee performs, rather than their job title.
“Additionally, it is common that the longer an employee has spent in the business, the more likely that they may be relied upon to do higher duties. For example, if you have a long-term Food and Beverage Attendant who has transitioned to regularly supervising the team, this may call for an increase from the attendant level classification to the supervisor level classification.”
Other issues to watch out for include thinking you have paid “above award” only to find that the original rate offered may have fallen below the minimum hourly rate for the employee’s classification.
Robertson also says it is important to remember that the salary of these employees must stay at least 25 per cent above the minimum wage for their classification.
“The Clubs award also allows for the payment of salaries to employees, however, the percentage above minimum requirement varies between 20-50 per cent above award depending on the employees’ classification and conditions of the salary arrangement,” she says. “As part of the annual review process, make sure you include employees paid a salary under these awards and ensure they are paid at least the minimum salary required.”
In addition, Robertson says a payroll system that offers features such as automatic award rate increases and bulk applying pay increases can assist in ensuring this process is efficient as well as thorough.
Additionally, make sure you have planned the timing correctly so that you are applying the increase at the right time, from the first full pay period on or after 1 October 2022.
“This means that if your last pay cycle in September runs across September and October, the increase is not actually due until the next cycle as it will be the first full pay period on or after 1 October,” she says.
Robertson’s top tips in addressing your annual review process:
- Review employees award classifications
- Review employees paid an “above award” hourly rate
- Review employees paid an annualised salary
- Apply wage increases from the first full pay period starting on or after 1 October 2022