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Do you have information regarding Schedule K - Loaded Rate Arrangements for HIGA?

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Summary

Schedule K – Loaded Rate Arrangements (in simple terms) provides for the payment of loaded payrates instead of some penalty payments (overtime, penalty rates (Saturday, Sunday, Shift (early and late work)) and split shift allowances) up to a certain amount. When total hours of work though exceed weekly maximum, these Award payments are to be applied.

Resolution

Hospitality Industry (General) Award 2020

Schedule K – Loaded Rate Arrangements (in simple terms)

Provides for the payment of loaded payrates instead of some penalty payments (overtime, penalty rates (Saturday, Sunday, Shift (early and late work)) and split shift allowances) up to a certain amount.  When total hours of work though exceed weekly maximum, these Award payments are to be applied.

 

Basic requirements

Applies to Full Time only, from Levels 3 – 6 (not Introductory, Levels 1 – 2, Junior, Supported wage rates, remote catering, rostering 160 hours/4 weeks/8 days off each 4 week period + ADO clause15.1(b)(vii))2

Pay loaded payrates as below

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Day Range

Loaded Rate Max Wkly Hrs                

Mon-Fri 40hrs

Mon-Fri 45hrs

Mon-Sat 40hrs

Mon-Sat

45hrs

Mon-Sun

40hrs

Mon-Sun

45hrs

 

If above maximum hours are exceeded, then Award conditions for overtime, penalty rates and split shift allowance need to apply

Eg. employee on Mon-Fri day range roster being paid 110.20% loaded rate works more than 40 hours, overtime is payable

                                               

Note: any all-purpose allowances need to be added (paid on top) of these payrates (eg. fork lift driver, airport catering supervisory)

Payment of loaded payrate Instead of

  • - Split shift allowance (clause 26.14(b)(i)
  • - Overtime (clause 28, except 28.2 d-f – overtime on RDO/ADO, overtime minimum on RDO/ADO).
  • - Penalty rates (clause 29, except public holiday penalty rates)

 

Rostering requirements to be met (Loaded Rate Parameters)

  • - Weekly commencing on a Monday
  • - Monday to Friday maximum of 11.5 hours per day (excluding meal breaks), shift between 7.00am – 12.00am midnight
  • - Saturday and Sunday 10 hours maximum (excluding meal breaks)
  • - Period between shifts 3 hours or less, then split shift allowance paid

 

Award Configuration

2 new Full Time Block Awards created, with relevant Penalty payments (Day>Loadings, Shift>Loadings) removed.  Same settings in each except for Period Times 1 settings.

40 hours                                                                                         45 hours

Image Image

 

Allowances

Allowance for payment of additional penalty rates, shift and split shift loadings have been added.  (1 November 2021 rates displayed below). Penalty payments apply once the scope for Loaded Rates Parameters are exceeded (eg. weekly hours outside hours range for loaded rates) (see Award Notes)

Image Image

Image Image

 

Note: for shift loading and split shift allowances, 1 November 2021 changes have been added

 

 

Notes (from the Award)

NOTE 1: An employee will be entitled to overtime in accordance with clause 28Overtime for work which exceeds the daily and/or shift maximum hours, the Loaded Rate Range of Days or the Loaded Rate Maximum Weekly Hours each week.

NOTE 2: Under the NES (see section 62 of the Act) an employee may refuse to work additional hours if they are unreasonable. Section 62 sets out factors to be taken into account in determining whether the additional hours are reasonable or unreasonable.

NOTE 3: An employee will be entitled to the relevant penalty rates and applicable entitlements for work completed on, or other arrangements relating to a public holiday in accordance with clause 29Penalty rates and clause 35Public holidays.

NOTE 4: If an employee performs work beyond the scope of the Loaded Rates Parameters but does not exceed the daily and/or shift maximum hours, the Loaded Rate Range of Days or the Loaded Rate Maximum Weekly Hours each week, the employee will be entitled to the applicable penalty rate or allowance in accordance with this award.

EXAMPLE 1: If the employee starts work at 6:00am on a Tuesday, the employer must pay the employee an additional amount of $3.46 in accordance with clause 29.2.

EXAMPLE 2: If the employee has a split shift where the period between shifts exceeds 3 hours, the additional payment is $1.49, being the difference between the split shift allowances in clause 26.14Split shift allowance.

 

Simplified

  • - If the employees work hours go outside the Day Range Loaded Rate Max Weekly Hours, (ie. work Saturday when they are on a range Mon-Fri, exceed weekly hours) then overtime is a payable. It is therefore recommended that employees default payrate remains as it currently is set (without loading) so that overtime is paid on the base rather than the loaded rate.   For example, Level 6 Cook Tradesperson grade 5 employee on $25.20 (pre-1 November 2021 payrate), $25.88 (post 1 November 2021 payrate)

Image

 

Rather than on relevant Level 6 Loaded Rate

Image

Timesheet would be entered paying Loaded payrate

Image

 

To pay leave at the loaded payrate (rather than default base payrate), the Leave Wizard mode should be used so that the loaded payrate can be selected.

Image

Image

 

  • - Public holiday penalty rates continue to apply – as above, for public holiday penalty rate to be calculated on the base payrate

Base payrate $25.20 – public holiday loading 225% pays $56.70

Image

  • - Allowances can be paid for additional amounts when penalty rates are payable because Loaded Rates Parameters are exceeded.
  • Eg. Example 1 - employee shift starts at 6.00am but still works under parameters of 45 hours and 11.5 hours for the day – under the Award would be paid $3.46 Clause 29.2. This payment still applies and should be paid via Shift Loading Mon-Fri Midnight – 7am

Image

 

  • Eg. Example 2. Split Shift of more than 3 hours is worked.  Payment of the difference between two split shift allowances of $1.49 (Clause 26.14) is payable ($4.39 - $290) rather than the Award amount $4.39. 

Image

Hospitality Industry (General) Award 2020
Schedule K – Loaded Rate Arrangements (in simple terms)
Provides for the payment of loaded payrates instead of some penalty payments (overtime, penalty rates (Saturday, Sunday, Shift (early and late work)) and split shift allowances) up to a certain amount. When total hours of work though exceed weekly maximum, these Award payments are to be applied.

Basic requirements
Applies to Full Time only, from Levels 3 – 6 (not Introductory, Levels 1 – 2, Junior, Supported wage rates, remote catering, rostering 160 hours/4 weeks/8 days off each 4 week period + ADO clause15.1(b)(vii))2
Pay loaded payrates as below

Day Range
Loaded Rate Max Wkly Hrs Mon-Fri 40hrs Mon-Fri 45hrs Mon-Sat 40hrs Mon-Sat
45hrs Mon-Sun
40hrs Mon-Sun
45hrs

If above maximum hours are exceeded, then Award conditions for overtime, penalty rates and split shift allowance need to apply
Eg. employee on Mon-Fri day range roster being paid 110.20% loaded rate works more than 40 hours, overtime is payable

Note: any all-purpose allowances need to be added (paid on top) of these payrates (eg. fork lift driver, airport catering supervisory)
Payment of loaded payrate Instead of
- Split shift allowance (clause 26.14(b)(i)
- Overtime (clause 28, except 28.2 d-f – overtime on RDO/ADO, overtime minimum on RDO/ADO).
- Penalty rates (clause 29, except public holiday penalty rates)

Rostering requirements to be met (Loaded Rate Parameters)
- Weekly commencing on a Monday
- Monday to Friday maximum of 11.5 hours per day (excluding meal breaks), shift between 7.00am – 12.00am midnight
- Saturday and Sunday 10 hours maximum (excluding meal breaks)
- Period between shifts 3 hours or less, then split shift allowance paid

Award Configuration
2 new Full Time Block Awards created, with relevant Penalty payments (Day>Loadings, Shift>Loadings) removed. Same settings in each except for Period Times 1 settings.
40 hours 45 hours

Allowances
Allowance for payment of additional penalty rates, shift and split shift loadings have been added. Penalty payments apply once the scope for Loaded Rates Parameters are exceeded (eg. weekly hours outside hours range for loaded rates) (see Award Notes)

Note: for shift loading and split shift allowances, 1 November 2021 changes have been added


Notes (from the Award)
NOTE 1: An employee will be entitled to overtime in accordance with clause 28—Overtime for work which exceeds the daily and/or shift maximum hours, the Loaded Rate Range of Days or the Loaded Rate Maximum Weekly Hours each week.
NOTE 2: Under the NES (see section 62 of the Act) an employee may refuse to work additional hours if they are unreasonable. Section 62 sets out factors to be taken into account in determining whether the additional hours are reasonable or unreasonable.
NOTE 3: An employee will be entitled to the relevant penalty rates and applicable entitlements for work completed on, or other arrangements relating to a public holiday in accordance with clause 29—Penalty rates and clause 35—Public holidays.
NOTE 4: If an employee performs work beyond the scope of the Loaded Rates Parameters but does not exceed the daily and/or shift maximum hours, the Loaded Rate Range of Days or the Loaded Rate Maximum Weekly Hours each week, the employee will be entitled to the applicable penalty rate or allowance in accordance with this award.
EXAMPLE 1: If the employee starts work at 6:00am on a Tuesday, the employer must pay the employee an additional amount of $3.46 in accordance with clause 29.2.
EXAMPLE 2: If the employee has a split shift where the period between shifts exceeds 3 hours, the additional payment is $1.49, being the difference between the split shift allowances in clause 26.14—Split shift allowance.

Simplified
- If the employees work hours go outside the Day Range Loaded Rate Max Weekly Hours, (ie. work Saturday when they are on a range Mon-Fri, exceed weekly hours) then overtime is a payable. It is therefore recommended that employees default payrate remains as it currently is set (without loading) so that overtime is paid on the base rather than the loaded rate. For example, Level 6 Cook Tradesperson grade 5 employee on $25.20 (pre-1 November 2021 payrate), $25.88 (post 1 November 2021 payrate)

Rather than on relevant Level 6 Loaded Rate

Timesheet would be entered paying Loaded payrate

To pay leave at the loaded payrate (rather than default base payrate), the Leave Wizard mode should be used so that the loaded payrate can be selected.

- Public holiday penalty rates continue to apply – as above, for public holiday penalty rate to be calculated on the base payrate
Base payrate $25.20 – public holiday loading 225% pays $56.70

- Allowances can be paid for additional amounts when penalty rates are payable because Loaded Rates Parameters are exceeded.
• Eg. Example 1 - employee shift starts at 6.00am but still works under parameters of 45 hours and 11.5 hours for the day – under the Award would be paid $3.46 Clause 29.2. This payment still applies and should be paid via Shift Loading Mon-Fri Midnight – 7am

• Eg. Example 2. Split Shift of more than 3 hours is worked. Payment of the difference between two split shift allowances of $1.49 (Clause 26.14) is payable ($4.39 - $290) rather than the Award amount $4.39.

HIGA Schedule K - Loaded Rate Arrangements PDL

The above link contains only 2 new full time Awards, 24 payrates and a few allowances. When loaded into existing HIGA, it supplements it with these additions only, with no changes to existing Awards made.