Do you have employees covered by the Restaurant Industry Award 2020? If so, did you know that on2 August 2021 the Fair Work Commission issued a determination varying the Award by including two new schedules, Schedule R and Schedule AA, to assist businesses in recovering from the COVID-19 Pandemic.
Schedule AA and Schedule R operate from 11 August 2021 until 10 August 2022.
Simplified classification structure
An employer can now elect to classify relevant employees in accordance with the simplified classification structure in Schedule AA. Provided employees are classified correctly, this will not result in a reduction of take home pay for any employee and may result in an increase in take home pay for some employees.
Substitute Allowance
An employer and an employee may now enter into an agreement to pay an employee a substitute allowance which will be payable in substitution for the following work and expense related allowances:
· clauses 16.5 and 16.6 (meal break);
· clause 21.2 (meal allowance);
· clause 21.3 (split shift allowance);
· clause 21.4 (tool and equipment allowance);
· clause 21.5 (special clothing allowance); and
· clause 21.6 (distance work allowance).
The substitute allowance is payable as follows:
· Introductory: $1.60 per hour
· Level 1: $1.60 per hour
· Level 2: $1.02 per hour
· Level 3: $0.98 per hour
· Level 4: $0.90 per hour
· Level 5: $1.01 per hour
· Level 6: $1.08 per hour
An employer and at least 75% of the employees in a workplace may agree to pay all employees a substitute allowance.
The Substitute Allowance is to be paid for all purposes of the Award and purpose is to simplify the calculation of allowances and reduce the administrative burden on employers.
Exemption rates
An employer and a full-time employee (Level 5 of Level 6) can now enter into an agreement to pay the employee 170% of their weekly rate of pay as set out in clause 18 Minimum Rates.
Where an Exemption Rate has been agreed to the following clauses of the Award will not apply:
The Exemption Rate is to be paid for each hour worked, up to 57 hours in a week. Where hours are worked in excess of 57 in a week the employee is to be paid 150% of the Exemption Rate for the first two hours in excess of 57 hours in the week and 200% of the Exemption Rate after that.
The Exemption Rate should be the rate used when calculating personal leave and annual leave and its purpose is to reduce administrative burden on employers, is attractive for employees because provides a minimum guaranteed rate of pay, assurance of hours and expectations of pay.
The Exemption Rate does not apply to employees in the administrative and general stream.
This Determination takes effect from the start of the first full pay period commencing on or after 11 August 2021.
Need more information contact our Business Advice Hotline today on (08) 8300 0000.
