Weekend Penalty Rate changes for Hair & Beauty Award Approved.

Home / HABA Blog / Weekend Penalty Rate changes for Hair & Beauty Award Approved.

Posted October 6, 2021

It has been confirmed that casual hair and beauty employees are set to gain a pay rise of up to $92 per week by 2023. This is a 25% increase over 2 ½ years with the inclusion of a casual loading on top of existing penalty rates.

 

Maureen Harding, National President of Hair and Beauty Australia states “… the Fair Work Commission varied the Hair and Beauty Industry Award to insert a schedule to phase in increases in weekend penalty rates for casuals.

 

“Ultimately the FWC determined that, consistent with its earlier decisions, casual employees in the hair and beauty industry should be paid a 25% casual loading on top of the weekend penalty rates that apply to other employees.

 

“Importantly, however, the Commission endorsed an agreement reached between HABA and relevant unions to phase-in the increases over the period up to 31 December 2023, with the first instalment operative from the end of January next year. The Commission accepted HABA’s submissions that hair and beauty businesses are currently facing major challenges as a result of the pandemic and therefore the increased penalty rates need to be phased-in over a lengthy period with no increases operative before next year”, Ms. Harding said.

 

“The award variation follows the FWC’s major Penalty Rates Decision in 2017, in which the Commission decided that casual loadings and weekend penalty rates are separate and distinct forms of compensation. Subsequently, in 2020 a Full Bench of the FWC expressed the view that the current weekend penalty rates for casuals under the Hair and Beauty Industry Award do not reflect the findings of the Commission in the 2017 Penalty Rates Decision, because casuals under the Award are paid the same rate as other employees for weekend work” said Ms. Harding.

 

HABA + our partners at Ai Group had previously approached the Fair Work Commission to reduce Sunday and Public Holiday pay rates for casuals, to afford salon owners the ability to operate with profit on those days. This claim was rejected in January 2021, with the commission saying that there were already provisions in the Hair and Beauty Industry Award that allowed for similar rates of pay for permanent and casual workers on weekends and that any change would not be consistent with its major penalty rates decision in 2017.

 

You can read all the documentation at the FWC website.
https://www.fwc.gov.au/awards-agreements/awards/modern-award-reviews/penalty-rates-case/award-specific-matters/am201740

 

HABA continues to represent salon owners at the Fair Work Commission to ensure that your best interests are represented at all levels of government. We are committed to a strong future for the Hair and Beauty Industry as a whole and recommend that all salon owners stay up to date with your requirements to your employees to ensure you avoid any penalties associated with the incorrect payment of staff in our industry. HABA is the only registered industry organisation with the Fair Work Commission, affording us the ability to go in and fight for salon owners’ best interests at all levels of government and ensuring that your voices are heard.

 

Do you require further advice?
For information or assistance relating to the application of the Fair Work Commission’s decision, please contact the Hair and Beauty Australia Workplace Advice Line on (02) 9221 9911, which is open from 8.30am to 5.30pm AEST or email on info@askhaba.com.au.