AHA | SA MEMBER INFORMATION
Changes to Annualised Wage Arrangements - HIGA OWEN WEBB - AHA | SA WORKPLACE RELATIONS MANAGER
The Fair Work Commission (FWC) has now finalised their determination in the Annualised Wage Arrangements matter (AM2016/13) in the 4 yearly review of modern awards. The decision results in some significant changes to the current annualised salary provisions in the Hospitality Industry (General) Award 2020 (HIGA). The FWC’s decision varies the HIGA terms that relate to non-managerial annualised wage arrangements under clause 24. The variation takes effect from the first full pay period that starts on or after 1 September 2022. In this article we outline the key details of these changes.
WHAT IS AN ANNUALISED WAGE ARRANGEMENT?
WHO DO THE CHANGES APPLY TO?
An annualised wage arrangement, also known as an annualised salary, is a way of paying an employee whereby an agreement is made that a fixed annual wage is paid, that will renumerate the employee for some or all of the separate payments they would be entitled to under an Award (e.g. hours of work, penalty rates, overtime, allowances, loadings etc.).
The changes relate to clause 24 of the HIGA, that is, only in relation to Non-Managerial employees.
The HIGA provides for two different salary arrangements, at clause 24 and 25. Clause 24 relates to all classifications other than Managerial Staff (Non-Managerial), and clause 25 relates to Managerial Staff only.
24 | Hotel SA | W W W . A H A S A . A S N . A U
No changes have been made to clause 25 of the HIGA – Salaries absorption (Managerial Staff (Hotels)), which provides for a Managerial exemption arrangement. The changes are being made to the HIGA, therefore employees covered by an Enterprise Agreement are not immediately affected. Although the changes could be relevant in future Enterprise Agreement negotiations and approvals. Similar changes will also take effect from the first full pay period on or Back to Contents
