Penalty rates, part 5 – Restaurants and Cafes

  • Penalty rates for restaurants & cafes

Restaurants and cafes are covered by the Restaurant Industry Award 2010. That award covers those in the restaurant industry, including:

  • Waitstaff (a.k.a. food and beverage attendants)
  • Kitchen hands (a.k.a. kitchen attendants)
  • Chefs and cooks
  • Back of house
  • Storeperson and goods receipt
  • Security staff, doorman, timekeeper who are employed by the business (as opposed to being supplied by another company)
  • Handymen (but not tradies)

(full details in Schedule B of the Award)

The transitional period of phasing transitional entitlements applies until 30 June 2014. At the moment, businesses apply 80% of the new entitlements and 20% of the old entitlements, with some maths to make it a transition. From 1 July 2014, it’s all of the new entitlements and none of the old entitlements. That means restaurants have only one source to determine minimum penalty rates.

Read this first

To keep this Small Plate a little more simple, we’ll consider a restaurant which did not employ staff before 27 March 2006. Those businesses have to phase out old penalty entitlements as well.

We’ll proceed on the basis that, before the Restaurant Industry Award 2010, the Liquor and Accommodation Industry – Restaurants – Victoria Award 1998 was the relevant transitional award.

Penalty rates under the award for full time and part time

To 30 June 2014 From 1 July 2014
Monday – Friday, 7am-10pm Normal pay Normal pay
Monday – Friday, 10pm-midnight Plus 8% Plus 10%
Monday – Friday, midnight-7am Plus 12% Plus 15%
Saturday Plus 20% Plus 25%
Sunday Plus 40% Plus 50%
Public Holidays Plus 120% orplus 40% and time off Plus 150% or
plus 50% and time off
Christmas Day on a weekend Treat as non-public holiday,
plus an extra 40%,
plus time off
Treat as non-public holiday,
plus an extra 50%,
plus time off

Penalty rates under the award for casual workers

This is taken from the base wage, before adding the casual loading. The casual loading of 25% is included in each percentage. That’s for ease of reading and because that’s how the maths is done. Both the casual loading and the penalty rates are calculated as a percentage of the base wage, then it’s all added up.

To 30 June 2014 From 1 July 2014
Monday – Friday, 7am-10pm Plus 25%
(normal casual loading)
Plus 25%
(normal casual loading)
Monday – Friday, 10pm-midnight 28% Plus 35%
Monday – Friday, midnight-7am 32% Plus 40%
Saturday 45% Plus 50%
Sunday 60% Plus 50% or 75%, depending on classification
Public Holidays 125% 150%

(full details in para 34 of the Award)

It’s not particularly straightforward. It will get easier from July 2014. After that, penalty rates may be abolished.


By | 2017-06-01T13:06:26+11:00 24 February 2014|Categories: Fact sheets|Tags: , , , , , , , |

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