All-in pay rates backed by Fair Work Commission
A proposal by employers offering all-in pay rates to full-time workers in hotels and pubs has been fully upheld by the Fair Work Commission.
The Commission rejected union opposition.
The new “loaded rates” schedule was backed by a commission full bench headed by tribunal president Iain Ross.
This schedule rolls up penalty rates except those paid on public holidays, overtime and split shift allowances into higher above-award rates.
The full bench rejected claims from ACTU and United Workers Union that some workers might suffer from this.
“Contrary to the submissions advanced by the ACTU and UWU we are satisfied that the quantum of loaded rates and the loaded rate parameters ensure that workers on loaded rates arrangements are paid the same or more than they would have been paid if the loaded rate did not apply,” the full bench said.
The ACTU suggested the schedule might reduce the work opportunities of casual, part-time and Level 1 and 2 full-time workers, However the Commission ruled this was “entirely speculative - no evidentiary basis is advanced in support of the contention”.
The full bench said given the loaded rate parameters; and the range of days and maximum weekly hours associated with particular loaded rates, “we are satisfied that no employee to whom the loaded rate arrangements will apply will be worse off if the application is granted”.
It said there was a likelihood that “some low paid full-time employees will be better off”.
“Contrary to the submissions advanced by the ACTU and UWU we are satisfied that the quantum of loaded rates and the loaded rate parameters ensure that workers on loaded rates arrangements are paid the same or more than they would have been paid if the loaded rate did not apply,” the full bench said.
It went onto say, “We are satisfied that no employee to whom the loaded rate arrangements will apply will be worse off if the application is granted.”
While it has been acknowledged that the Australian Hotels Association proposal had a “degree of complexity”, the commission believes it will reduce the regulatory burden on employers.
Under the proposed draft schedule, the employer will be required to consult with an employee at least seven days prior to implementing a loaded rates arrangement.
The commission can terminate an arrangement if the employer fails to consult as required.
Stephen Ferguson, chief executive at AHA said hotels and hospitality businesses would “benefit from a simplified award system that is notoriously complex”.
“Initiatives such as loaded rates are critical in preventing unintended breaches of workplace laws.
“The 65 per cent of Australian hotels that are family–owned and operated are the biggest beneficiaries from loaded rates, as they won’t have to spend days labouring over complex pay rates to ensure they are compliant.”
Irit Jackson, 7th September 2021
