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Basics that hospitality employers need to know

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Changes to employment terms over the past 6 months have potential to catch some hospitality businesses out. Here’s an update on some of the key points affecting the food and beverage sector.

thumbnail hospitality employers update2For the many hospitality businesses that rely on casual staff there have been some important changes around overtime rates and how part-time hours can be worked.

From 1 November 2018 the Fair Work Commission (FWC) introduced further overtime rates in a number of awards covering casuals, including

  • fast food
  • hospitality
  • restaurants.

Overtime thresholds

Across all three types of operations casual employees who work

  • more than 38 hours a week, or an average of 38 hours a week per 4-week roster cycle
  • between 11 and 12 hours per day or shift (for the exact hours check the individual award)

are entitled to be paid overtime. (Under the award for restaurant employees they may also be entitled to a meal allowance if they work overtime.)

Employer responsibilities

Employers’ responsibility for their staff goes beyond hours and rates of pay, and also applies to casuals. Casual worker’s rights may include

  • hourly pay rate loading, according to the relevant award
  • superannuation payments on their behalf if they earn more than $450 a month
  • unpaid leave entitlements under certain conditions
  • eligibility to be converted to permanent work (dependant on length of time as a casual and hours worked).

Get the right back-up

As recent reports of employee legal actions against food outlets show, business owners need to be aware of and up to date with these requirements and new regulations, but mistakes and oversights do happen.

That’s when having the right insurance can be critical. Even a small enterprise needs to protect itself and the Gallagher hospitality team specialists in your area can look at personalising an insurance solution that matches your business’s size, scope and activities.

As a partner of the Restaurant and Catering Industry Association of Australia and with 90 years’ worldwide experience with hospitality businesses, you can trust Gallagher to take care of your food and beverage enterprise’s insurance needs.

Learn more about our hospitality expertise


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