The 4-yearly Modern Award review has introduced extensive changes for all employees under the Hair and Beauty Industry Award. These updates became effective on August 9, 2022. Business owners must understand these shifts to remain compliant with Fair Work standards.
New Industry Definitions for Specialised Treatments
The review amended the definition of the Hair and Beauty Industry to include broader service categories. It now covers:
“Body massage including high frequency body treatments and other specialised treatments using machinery and other cosmetic applications and techniques.”
This new wording provides broader coverage for modern works undertaken within the industry.
Updating Part-Time Hours Electronically
A new clarification within the part-time clause specifies how you manage ordinary hours. Employers and employees can now modify agreed-upon hours via electronic means. You should monitor these changes closely, as they may impact the overtime amounts you pay to your staff.
Tool Allowances and Transport Reimbursements
The updated Hair and Beauty Industry Award now clarifies tool allowances to explicitly include scissors and other cutting instruments.
Additionally, the reimbursement clause now includes broader transport services, such as Uber. Please note that employees should only use commercial passenger vehicles when regular transport fails and both parties agree to the arrangement.
Important Variations to Annual Leave Loading
The most significant modifications involve Annual Leave loading calculations. For the purpose of leave loading, a relevant weekend penalty is the usual weekend hourly rate minus the minimum hourly rate.
When an employee takes accrued annual leave, you must calculate loading based on the Award minimum hourly rates. The employee must receive the greater of the following:
- 17.5% of the ordinary hours they would have worked; OR
- The relevant weekend penalty amounts for all ordinary weekend hours they would have worked during that period.
Classifying ‘On-Hire’ Employees
The Award now explicitly defines ‘on-hire’ employees as those performing work for the employer. This change helps you determine the correct employee classification for accurate payments.
Get Expert Compliance Support
Navigating the Hair and Beauty Industry Award can be difficult for busy business owners. Assurance HR Management can help you review your current employee arrangements. We ensure you appropriately classify staff and review wages, hours, and entitlements.
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Do you have questions about these Award changes? Call us on 1800 577 515 for a free consultation.
