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As part of the Fair Work Commission’s Modern Award Review, changes have been made to the annualised wage and salary clauses in some awards.

Changes to the annualised wage arrangements clauses in the Hospitality Award and the Restaurant Award come into effect from 1 September.

The changes include setting outer limits to the number of overtime or penalty rate hours that can be covered by an annualised wage arrangement, as well as some additional record-keeping requirements.

Key changes:

From 1 September 2022:

  • rules about what award entitlements can be included in an annualised wage arrangement
  • new rules about the maximum number of hours that attract overtime or penalty rates that an employee can work in a roster cycle and be included in their annualised wage (called the ‘outer limits’)
  • what needs to be included in a written agreement for an annualised wage arrangement
  • extra record-keeping rules
  • new rules about ending an annualised wage arrangement.

These changes:

  • only apply to full-time employees covered by the Restaurant Award or the Hospitality Award
  • don’t apply to people employed as Managerial Staff (Hotels) under the Hospitality Award.

Need help understanding the changes?

Contact the HR and employment law experts at BetterHR.

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Login to your BetterHR software account or contact us to access the advice, tools and support you need.

Download the new guide: An employers guide to annualised wage arrangements in the hospitality and restaurant industries.

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