QUARTERLY UPDATE OF CHANGES TO THE HAIR & BEAUTY AWARD

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Posted April 18, 2017

We work in a dynamic, evolving industry, with everything from techniques and products to trends and even regulations changing all the time. The same is true for the Hair & Beauty Award, which tends to have significant changes every quarter. Here are the changes made that salon owners need to know about in the first quarter of 2017.

 

ANNUAL WAGE REVIEW 2017

On 29 March, Ai Group filed on behalf of Hair and Beauty Australia (HABA) its main submission in the Fair Work Commission’s (FWC’s) Annual Wage Review 2016-17.

 

We believe that a change in wages is necessary due to weak employment nationally, extended inflation, rising cost of living, and lower productivity in this sector.

 

Ai Group has proposed a 1.5% increase, equating to about $10.10 per week on the National Minimum Wage and $11.75 per week on the base trade rate.

 

These are significantly lower increases than those proposed by the Unions, with the ACTU suggesting an increase of $45 per week to the National Minimum Wage and United Voice proposing bringing the national minimum wage in the industry up to $20 an hour. In its media comments, Ai Group described the Unions’ wage claims as irresponsible and unrealistic, and we believe this is the case particularly for salon owners.

 

PENALTY RATES DECISION

As we spoke about at the time of announcement, The Fair Work Commission on the 23rd of February announced that Sunday and Public Holiday penalty rates paid in retail, fast food, hospitality and pharmacy industries will be cut.

 

In its decision, the Full Bench invited expressions of interest from any employer association prepared to represent employers in the case to review weekend penalty rates in the Hair and Beauty Industry Award 2010..

 

Ai Group has filed an expression of interest on behalf of the Hair & Beauty Australia to represent hair and beauty industry employers in a review of penalty rates under the Award.

 

CHANGES TO LEAVE

There have been a number of changes to leave policies within the Award:

 

Domestic Violence Leave

Unions are claiming for 10 days per annum for domestic violence leave. This would be quite extraordinary to achieve. When any update occurs, HABA will keep you informed.

 

Time off instead of payment for overtime

The Award has been changed so that any time off in lieu must be taken within the period of 6 months after the overtime is worked. This must be done at a time agreed by both the employee and employer.

 

Annual Leave in Advance

Annual leave may be taken in advance by any employee. However, a written agreement should be put in place stating the amount of leave taken in advance and the date the leave starts and must be signed by the employer and employee. If the employee is under 18 years old, must be signed by the employee’s parent or guardian.

If, on the termination of employment, the employee has not accrued paid annual leave already taken in advance, the employer may deduct the amount from the employee on termination.

 

Cashing out annual leave

Employees can choose to cash out their annual leave if necessary. A written agreement must be in place stating the amount of leave cashed out and the date on which the payment is made and must be signed by the employer and employee. If the employee is under 18 years old, must be signed by the employee’s parent or guardian.

An agreement must not result in the employee having less than 4 weeks paid annual leave after the cashing out of their leave. The maximum amount of paid annual leave that may be cashed out is 2 weeks per year.

It is important that salon owners stay up to date with changes to the Hair & Beauty Award, as these changes directly impact the way you pay your staff, what your staff can ask for, your salon policies and importantly – the bottom line.

 

If you have any questions at all about changes to the Hair & Beauty Award and how it relates to your salon, our team of Industrial Relations experts are here to help. As a HABA Member, you can speak to any of our experts as many times as you like throughout the year, offering you peace of mind that you are doing the right thing by your staff and by your business, while offering you insurance against claims. Join HABA today by clicking the link or call the team on (02) 9221 9911.