Penalty rates, part 6 – Bars and Nightclubs

  • Penalty rates for bars and nightclubs

Bars and night clubs are covered by the Hospitality Industry (General) Award 2010. That award is a bit of a catch all. It covers employers and employees who aren’t in certain industries. Notable exclusions include:

There’s more detail in clause 4 and Schedule D 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 before proceeding

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 Hospitality Industry (General) Award 2010, the Accommodation, Cafes and Restaurants Industry Sector – Minimum Wage Order – Victoria 1997 was the relevant transitional award. Handy for this calculation as that wage order doesn’t have any penalty entitlements, so there’s nothing to phase out.

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 60% Plus 75%
Public Holidays Plus 120% orplus 40% and time off Plus 125% orplus 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

More detail in clause 32 of the Award.

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 Plus 28% Plus 35%
Monday – Friday, midnight-7am Plus 32% Plus 40%
Saturday Plus 45% Plus 50%
Sunday Plus 60% Plus 75%
Public Holidays Plus 145% Plus 175%

More detail in clause 32 of the Award.

References:

By | 2017-06-01T13:06:26+10:00 3 March 2014|Categories: Fact sheets|Tags: , , , , , , , , |

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