Fair Work backs all-in pub pay rates

Fair Work president Iain Ross rejects union opposition and approves new all-in rates for full-time pub and hotel workers.

Fair Work Commission President Iain Ross backed a new “loaded rates” schedule. Picture: News Corp

Hotels and pubs have won the right to offer all-in pay rates to full-time workers after the Fair Work Commission rejected opposition from unions and backed an award flexibility proposal by employers.

A commission full bench headed by tribunal president Iain Ross backed a new “loaded rates” schedule that rolls up penalty rates except those paid on public holidays, overtime and split shift allowances into higher above-award rates.

The schedule contains five levels of loaded rates that range from 10.2 per cent to 31.5 per cent above the award rate depending on the days and hours worked by employees. It will apply to Level 3 and above full-time workers.

The full bench rejected ACTU and United Workers Union claims that some workers might be left worse off. While the Australian Hotels Association proposal had a “degree of complexity”, the commission said it would reduce the regulatory burden on employers.

The full bench said given the loaded rate parameters; and the range of days and maximum weekly hours associated with particular loaded rates, “we are satisfied that no employee to whom the loaded rate arrangements will apply will be worse off if the application is granted”.

It said there was a likelihood that “some low paid full-time employees will be better off”.

“Contrary to the submissions advanced by the ACTU and UWU we are satisfied that the quantum of loaded rates and the loaded rate parameters ensure that workers on loaded rates arrangements are paid the same or more than they would have been paid if the loaded rate did not apply,” the full bench said.

The proposed draft schedule will be amended to require an employer to consult with an employee at least seven days prior to implementing a loaded rates arrangement. The commission will have discretion to terminate an arrangement if the employer fails to consult as required.

The full bench said the ACTU suggestion that the schedule might reduce the work opportunities of casual, part-time and Level 1 and 2 full-time workers was “entirely speculative - no evidentiary basis is advanced in support of the contention”.

AHA chief executive Stephen Ferguson said hotels and hospitality businesses would “benefit from a simplified award system that is notoriously complex”.

“The overwhelming majority of hospitality employers do the right thing, but not all businesses have the resources to employ dedicated workplace relations teams.”

“Initiatives such as loaded rates are critical in preventing unintended breaches of workplace laws.”

“The 65 per cent of Australian hotels that are family–owned and operated are the biggest beneficiaries from loaded rates, as they won’t have to spend days labouring over complex pay rates to ensure they are compliant.”

Former industrial relations Minister Christian Porter wrote to Justice Ross in December asking the tribunal to investigate implementing award changes that would let employers pay a single, higher rate to retail, hospitality and restaurant workers.