QUARTERLY UPDATE FOR THE HAIR & BEAUTY AWARD – WHAT YOU NEED TO KNOW

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Posted August 7, 2017

We work in a dynamic, evolving industry with everything from techniques, products, 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 second quarter of 2017.

 

ANNUAL WAGE REVIEW 2017

 

The AWR increase of 3.3% recently awarded by the Fair Work Commission (FWC), HABA believes, is fairly high and excessive when compared with the average wage movements across the economy. However, this compulsory increase does apply to all industries from the first pay period after 1 July 2017.

 

PENALTY RATES UPDATE

 

On Friday 28 July, Australian Industry Group (Ai Group) on behalf of the Hair & Beauty Australia (HABA) lodged recommendation with the FWC seeking to reduce the Sunday penalty rate from 200% down to 150% and the Public Holiday penalty rate from 250% down to 225% for all employees. The decision on this case and the outcomes of this recommendation are yet to be heard.

 

Members who may be willing to give evidence in the case as a witness or willing to provide feedback on the impacts of current Sunday/Public Holiday penalty rates on your current business trading are urged to contact Adrian Boothman on 02 9221 9911 or info@askahaba.com.au as soon as possible.

 

CASUAL/PART-TIME EMPLOYMENT DECISION

 

On 6 July, the FWC handed down its decision in the Casual and Part-time Employment Case. In the case, which continued for over two years, the unions were seeking an absolute right for casuals to be converted to permanent employees after six months of regular work, and for a standard four-hour minimum engagement period for casuals and part-time staff. Casual conversion provisions are common in awards and the FWC has decided to extend these provisions across most awards. HABA strongly opposed these claims.

 

Casual employees who work regular hours will have the right to apply for permanent employment after 12 months of regular service, but employers will have the right to refuse such requests if refusal is reasonable in the circumstances.

 

Similar to their conversion claims, HABA strongly opposed the unions’ claims for a standard four-hour minimum engagement period. Many casuals cannot or do not want to work for four hours, e.g. school students who work in our industry after school. Fortunately, the unions’ claims were rejected, thanks to recommendations made by Ai Group on behalf of HABA. The FWC has also rejected the unions’ claim for a halt on businesses employing more casual or part-time employees until existing employees had been offered more hours. Contrary to union claims about an increased “casualisation” of the workforce, the level of casual employment in Australia has been stable since 1998, at about 20% of the workforce. There are over 2 million casual employees in Australia.

 

The changes to the Hair & Beauty Award in Q2 2017 are significant and do affect all salon owners. There are additional claims being put forward to the FWC in the coming months, and HABA encourages all our members to help us ensure the best interests of salon owners are represented in these matters by sharing your experience with us, so that we can present it as a case study before the FWC. If you have concerns or want to help HABA and Ai Group protect the best interests of employers in these matters, get in touch with HABA on 02 9221 9911 or info@askahaba.com.au as soon as possible.