Does your business operate in the Hospitality or Restaurant industries? If so, you likely have employees that are covered by either the Hospitality Industry (General) Award 2020 or the Restaurant Award 2020.

Are any of your employees paid an annualised wage under these Awards (or do you want to know more about how to pay an annualised wage?).

An annualised wage arrangement is an agreement with your employee to pay them an annual wage under the terms of their award that is more than the minimum award rate. Using an annualised wage arrangement is an alternative to calculating and paying an employee’s wages based on their hours actually worked (including penalty rates and overtime) in each individual pay period. It is also different to being paid an annual salary under your employment contract.

It is important to note that the current arrangements for annualised wages are changing on 1 September 2022. Both of the above Awards are introducing an ‘outer limit’ rule for annualised wages. That is, there will be rules about the maximum amount of hours that attract overtime or penalty rates that you can require your employee to work in a roster cycle and include in their annualised wage arrangement. If the employee works beyond these hours you will have to provide them with an additional payment. These are called the ‘outer limits’.

Click here to access a very helpful guide, provided by the Fair Work Ombudsman, regarding annualised wages in the Hospitality and Restaurant industries.

If you need assistance setting up your annualised wages, or just ensuring that you are paying the correct rates and entitlements under either of these Awards, contact us at Rankin Business Lawyers.

Francine Hoyne-Clancy
Senior Associate, Workplace Relations/Employment Law