hair and beauty award pay guide

Employers Covered Under the Award

The Hair and Beauty Award covers employers operating in hair and beauty salons, barbershops, and related businesses. This includes those offering services like haircutting, coloring, styling, and beauty treatments. Employers must adhere to the award’s provisions, ensuring compliance with minimum wages, allowances, and working conditions for their employees. The award applies nationwide, regulating employment standards across the industry.

Employees Covered Under the Award

The Hair and Beauty Award applies to employees working in hair and beauty salons, barbershops, and related businesses. This includes hairdressers, barbers, beauty therapists, makeup artists, and apprentices. Employees performing tasks like cutting, coloring, styling, and beauty treatments are covered. However, professionals like doctors or chiropractors are not covered unless their services fall under the award’s specific scope. The award ensures fair pay and conditions for all eligible employees.

Classifications Within the Award

The Hair and Beauty Award categorizes employees into distinct classifications based on their roles and expertise. These range from Level 1 for entry-level apprentices to Level 6 for experienced senior hairdressers or beauty therapists. Each classification outlines specific duties, such as hair cutting, coloring, and beauty treatments, ensuring fair pay rates align with skill levels and responsibilities, promoting clarity and structure in the industry.

Employee Levels and Classifications

The Hair and Beauty Award structures employee roles into distinct levels, from apprentices to senior professionals, ensuring clear progression and fair pay based on expertise and responsibilities.

Classification Levels Explained

The Hair and Beauty Award categorizes employees into distinct levels, ranging from entry-level apprentices to senior professionals. Each level reflects specific skills, responsibilities, and experience, ensuring fair pay alignment. Classification levels detail the scope of work, qualifications, and expected competencies, providing clarity for employers and employees. This structure promotes career progression and equitable compensation within the industry.

Key Responsibilities for Each Level

Each classification level under the Hair and Beauty Award defines specific responsibilities, from basic tasks for entry-level employees to advanced duties for senior roles. Entry-level staff may perform routine services, while higher levels involve specialized techniques, client consultations, and team supervision. Senior roles may also include managing operations, training, and ensuring compliance with industry standards and safety protocols.

Minimum Rates of Pay

The Hair and Beauty Award sets minimum pay rates for employees, outlined in clause 17, ensuring fair compensation across all levels, with annual increases effective 1 July.

Current Minimum Pay Rates

The Hair and Beauty Award specifies minimum pay rates for employees, with rates increasing annually on 1 July. These rates are outlined in clause 17 and vary based on employee levels, ensuring fair compensation across the industry. For example, a Level 6 employee currently earns $1,121.50 per week, or $29.51 per hour, reflecting industry standards and cost-of-living adjustments.

Annual Increases and Updates

Minimum pay rates under the Hair and Beauty Award are updated annually on 1 July, reflecting cost-of-living adjustments and industry standards. Employers must adhere to these changes to ensure compliance. The Fair Work Commission reviews and adjusts the rates to maintain fairness and alignment with economic conditions, ensuring employees receive timely and appropriate wage increases.

Allowances and Penalties

The Hair and Beauty Award includes provisions for allowances, covering additional costs, and penalties for specific working conditions, ensuring fair compensation and compliance with industry standards.

Types of Allowances Covered

The Hair and Beauty Award specifies various allowances for employees, including tool, uniform, and travel allowances, to compensate for additional costs incurred while performing job duties. These allowances are structured to ensure fair reimbursement and are paid in addition to the minimum rates of pay outlined in the award, promoting compliance with industry standards and employee welfare.

Penalty Rates for Specific Conditions

The Hair and Beauty Award includes penalty rates for work under specific conditions, such as public holidays, weekends, or late-night shifts. These rates increase the standard pay to compensate for less convenient or demanding working hours, ensuring employees are fairly remunerated for their time and effort under these circumstances.

Overtime Pay

Overtime pay applies to work exceeding standard hours, with rates typically set at time-and-a-half or double time, depending on the specific conditions outlined in the award.

Overtime Rates and Conditions

Overtime rates under the Hair and Beauty Award are designed to compensate employees for work beyond standard hours. Time-and-a-half applies for the first two hours of overtime, while double time is paid for work exceeding eight hours in a day or on public holidays. Specific conditions, such as late-night shifts or weekend work, may also trigger higher rates, ensuring fair compensation for additional hours worked.

Calculating Overtime Pay

Calculating overtime pay involves determining the base rate and applying the relevant multiplier. For the first two hours of overtime, time-and-a-half is applied, while double time is used for work exceeding eight hours or on public holidays. Penalties for specific conditions, such as late-night shifts, may also increase the calculation, ensuring compliance with the award’s overtime provisions.

Pay Calculation Guide

The guide outlines step-by-step processes for determining base rates, applying penalties, and calculating overtime, ensuring accurate and compliant payment calculations for hair and beauty industry employees.

Step-by-Step Pay Calculation Process

Determine the employee’s classification level and applicable pay rate. Calculate base pay, add allowances, penalties, and overtime rates, then verify total pay against legal requirements to ensure compliance with the Hair and Beauty Award standards.

Examples of Pay Calculations

Example 1: A junior hairdresser at Level 2 earns $28.04 per hour. For a 38-hour week, base pay is $1,064.72. Add a 20% penalty for weekend work ($212.94) and any overtime rates for hours beyond 38.

Example 2: A senior beautician at Level 5 earns $39.25 per hour. For a 40-hour week, base pay is $1,570.00. Include allowances for specialized services (e.g., $50 for waxing) and calculate overtime for additional hours worked.

Leave Entitlements

Employees under the Hair and Beauty Award are entitled to annual leave, sick leave, and other specified types of leave, ensuring work-life balance and personal well-being.

Annual Leave and Sick Leave Provisions

Employees under the Hair and Beauty Award are entitled to 4 weeks of annual leave per year, accruing progressively. Sick leave allows for 10 days per year, usable for personal or family health. Annual leave can be taken with pay, and unused leave can be carried over, up to a maximum of 8 weeks. Payment for accrued leave is provided upon termination.

Other Leave Types and Conditions

Other leave types under the Hair and Beauty Award include compassionate leave, jury duty leave, and unpaid leave. Compassionate leave provides 2 days per occasion for bereavement or serious illness. Jury duty leave ensures employees are paid during service. Unpaid leave can be taken for personal reasons, subject to employer approval. Conditions vary, but notice periods and evidence may apply.

Working Hours and Rostering

Standard working hours for full-time employees are 38 hours per week, typically spread over 5 days. Breaks and rostering requirements ensure fair and consistent scheduling practices for all staff members.

Standard Working Hours

Under the Hair and Beauty Award, standard working hours are set at 38 hours per week for full-time employees, typically spread across 5 days. Employers can adjust hours based on business needs, but must comply with minimum break requirements and rostering rules to ensure fair work practices and employee well-being.

Break Requirements and Roster Management

Employees under the Hair and Beauty Award are entitled to regular, uninterrupted breaks, including a 30-minute meal break for shifts over 5 hours. Rosters must be provided in advance, with reasonable notice for changes. Employers must ensure fair distribution of shifts and comply with break requirements to maintain work-life balance and adhere to the award’s regulations.

Superannuation Obligations

Employers must contribute to employees’ superannuation funds, meeting legal requirements. Employees can choose their fund, with employers obligated to comply with superannuation guarantee laws and award provisions.

Employer Superannuation Contributions

Employers in the hair and beauty industry must contribute to employee superannuation funds, adhering to the Superannuation Guarantee (SG) rate. Contributions are typically 10.5% of an employee’s ordinary time earnings. Employers must pay into a default fund or an employee-chosen fund, ensuring compliance with both the award and superannuation laws to avoid penalties.

Choosing a Superannuation Fund

Employers and employees in the hair and beauty industry can select a superannuation fund that aligns with their financial goals. The award does not specify a particular fund, allowing flexibility. Factors such as investment options, fees, and insurance coverage should be considered. Employers may also seek advice from financial experts to ensure the chosen fund meets legal requirements and employee needs effectively.

Pay Slips and Record-Keeping

Employers must provide detailed pay slips to employees, including gross and net pay, deductions, and superannuation contributions. Accurate record-keeping ensures compliance with the Hair and Beauty Award.

Pay Slip Requirements

Employers must issue detailed pay slips to employees, outlining gross and net pay, deductions, allowances, penalties, and superannuation contributions. Pay slips must be provided regularly, either electronically or in hard copy, and must be clear, accurate, and compliant with the Hair and Beauty Award requirements to ensure transparency and proper record-keeping.

Record-Keeping Obligations

Employers in the hair and beauty industry must maintain accurate records of employee pay, hours, and leave balances. These records include payslips, time sheets, and superannuation contributions. All documents must be kept for at least seven years. Compliance with both the Hair and Beauty Award and Fair Work Act is essential to ensure transparency and accountability in employment practices.

Compliance and Enforcement

The Fair Work Ombudsman ensures employers comply with the Hair and Beauty Award, conducting audits and imposing penalties for non-compliance to protect employee rights and maintain fairness.

Authorities and Compliance Checks

The Fair Work Ombudsman is the primary authority enforcing the Hair and Beauty Award, conducting regular audits and investigations to ensure employers comply with pay rates, allowances, and conditions. Non-compliance may result in penalties, protecting employees’ rights and maintaining industry standards. Employers must maintain accurate records to facilitate these checks and demonstrate adherence to the award’s requirements.

Penalties for Non-Compliance

Employers who fail to comply with the Hair and Beauty Award may face penalties, including fines imposed by the Fair Work Commission. Non-compliance with pay rates, allowances, or other conditions can result in legal action and financial consequences. These penalties serve as a deterrent to ensure adherence to the award and protect employee rights within the hair and beauty industry.

Tips for Employers

Regularly review pay rates, classifications, and conditions to ensure compliance with the Hair and Beauty Award. Accurate record-keeping and transparent communication with employees are essential for fair workplace practices.

Best Practices for Award Compliance

• Regularly audit payroll systems to ensure accuracy and compliance with the Hair and Beauty Award.
• Consult the Pay and Conditions Tool for up-to-date information on rates and entitlements.
• Provide staff training on award requirements to maintain transparency and fairness.
• Establish clear communication channels for employees to raise concerns or queries.
• Stay informed about annual rate increases and updates to avoid non-compliance penalties.

Resources for Further Assistance

For detailed guidance, refer to the Fair Work Ombudsman website or the Hair and Beauty Industry Award document (MA000005). Utilize the Pay and Conditions Tool for specific rate calculations. Additionally, HR Connect offers tailored summaries and checklists to simplify compliance. Seek professional advice from unions, employer associations, or legal experts for complex queries.

Additional Resources

Visit the Fair Work Ombudsman website, review the Hair and Beauty Industry Award (MA000005), or use the Pay and Conditions Tool for detailed insights and calculations.

Where to Find More Information

For detailed insights, visit the Fair Work Ombudsman website, review the Hair and Beauty Industry Award (MA000005), or use the Pay and Conditions Tool. Additional resources include HR Connect guides, downloadable eBooks, and summaries from payroll experts. These sources provide comprehensive information on classifications, pay rates, and compliance requirements for employers and employees in the hair and beauty industry.

Seeking Professional Advice

Consult professionals like payroll experts, unions, or legal advisors for tailored guidance on the Hair and Beauty Award. Employer associations and HR specialists can also provide customized support. Their expertise ensures compliance, resolves complex issues, and offers practical solutions for specific workplace scenarios, helping employers and employees navigate the award effectively.