New Hospitality & SCHADS Rules for 2018
The Fair Work Commission has made changes to hours and overtime arrangements for part-time and casual employees working in Hospitality, Social, Community, Home Care and Disability Services (SCHADS) and Retail Industries. These are designed to make rostering arrangements more flexible and extend overtime to casuals.
At a glance:
- Part-time employees working in hospitality can now be engaged for an agreed number of guaranteed hours without having to specify start and finish times.
- Part-time employees in hospitality can now be rostered to work in accordance with their agreed availability.
- Part-time employees in hospitality can also ask to increase their guaranteed hours or change their availability if certain criteria are met.
- Part-time employees in SCHADS can work different hours week to week as part of their agreed pattern.
- There are also new overtime provisions for casual employees in the hospitality and retail industries.
- These changes came into effect from the first full pay period on or after 1 January 2018.
Hospitality Industry (General) Award 2010
The FWC recently changed part-time arrangements in the Hospitality Award finding greater flexibility in rostering of part-time employees’ hours was necessary to meet industry fluctuations in trade.
Previously, part-time employees were entitled to overtime payments for any hours worked in excess of their agreed hours and fixed start and finish times each day. This limited the flexibility of employers to change the hours of part-time staff in response to operational demands (for example, during busy or quiet times of the year).
Guaranteed hours and availability
Part-time employees can now be engaged for a minimum of 8 and up to 38 hours per week or roster cycle.
- On commencement, an employer and a part-time employee must agree in writing on guaranteed hours (i.e. the minimum number of hours) that will be provided and paid to the employee each week or roster cycle. They must also agree on the days and periods each day during which the employee will be available to work their guaranteed hours.
- An employer can roster a part-time employee to work their guaranteed hours during the agreed times the employee is available to work (rather than in accordance with fixed start and finish times as previously required). However, changes to guaranteed hours can only occur with the employee’s written consent.
- An employee can be rostered to work additional hours on top of their guaranteed hours (within their agreed availability) in accordance with the Award’s rostering requirements. Beyond this, overtime will still apply. Previously all time worked in excess of the agreed fixed start and finish times was overtime.
Requesting increased hours
The Award now also allows a part-time employee, who has regularly worked ordinary hours in excess of their guaranteed hours for at least 12 months, to request an increase in their guaranteed hours. An employer can only refuse such requests on reasonable business grounds, and specify those grounds to the employee in writing.
A part-time employee can ask to alter their availability by giving 14 days’ written notice where there has been a genuine and ongoing change in their personal circumstances. If the employer cannot accommodate the requested change in the employee’s availability and still provide their guaranteed hours, then those guaranteed hours will no longer apply. The employer and employee will need to reach a new written agreement regarding guaranteed hours. This may mean, for example, a reduction in an employee’s guaranteed hours is agreed due to a reduction in the days and times they are available to work.
No change to existing arrangements
All existing part-time employees are entitled to stay on their current contractual arrangements. Both parties’ agreement is needed to move to these new working arrangements in the Award.
The FWC also varied the Hospitality Award to extend overtime provisions to casuals on the basis they are subject to the same disadvantages as permanent employees working long hours. Overtime will now be payable where casual employees work more than 12 hours per day or shift, or 38 hours per week or roster cycle. Previously, casuals were not entitled to be paid overtime.
Social, Community, Home Care and Disability Services Industry Award 2010
The FWC has recently varied the SCHADS Award to clarify part-time employment provisions, to better align to the service requirements of NDIS plans.
The Award still requires an employer and part-time employee to agree in writing on the number of hours to be worked each week, the days of the week and start and finish times. However, the Award now explicitly provides that a part-time employee’s regular pattern of work does not have to be the same each week. For example, this means a part-time employee could agree to work different hours each week in a fortnightly or monthly roster.
General Retail Industry Award 2010
Photo taken at The Mustard Seed Bookshop & Cafe
The FWC has extended overtime provisions to casual workers employed under the Retail Award on the basis they are subject to the same disadvantages as permanent employees working long hours.
Overtime now applies where casual employees work more than 38 hours per week or roster cycle, outside the span of ordinary hours, or in excess of 11 hours on one day and 9 hours on any other day of the week. Overtime rates for casuals are inclusive of casual loading. Previously, casuals were not entitled to be paid overtime.
What Employers should do
CCER recommends employers review their part-time rostering arrangements under the Hospitality and SCHADS Awards to consider whether greater flexibility can be achieved to meet operational requirements.
We also recommend employers review their casual rostering arrangements under the Hospitality and Retail Awards to minimise the effect of new overtime provisions.
You can access the updated Awards by clicking here.
Please contact CCER for assistance if you need help reviewing your rostering arrangements.
If you have any questions, you can reach us on (02) 9390 5255 or via email email@example.com