Hotel SA September 2023

W O R K P L A C E R E L A T I O N S
responsibility to ascertain if the employee falls within
the managerial classification definition. The managerial
classification definition is as follows:
“ … an employee (however designated) who:
• Under the direction of senior management is required
to manage and co-ordinate the activities of a relevant
area or areas of the hotel; and
• Directs staff to ensure they carry out their duties in the
relevant area or areas of the hotel; and
• Implements policies, procedures and operating
systems for the hotel “
The employee must have also completed an
appropriate level of training in business management
or have relevant industry experience, including in
supervising employees in one or more areas of a hotel.
An indicative position that would fall under the
managerial classification level is that of a Duty/
Assistant Manager.
If an employer has determined that the employee fits
within the managerial classification structure based on
the definition under Schedule A.2.9, the employer then
has the option of either paying the role according to an
hourly rate or alternatively under a salary arrangement.
The rates of pay for managerial staff employees paid
under an hourly rate are contained under Schedule B.5
of the HIGA.
Salary arrangements for managerial staff are contained
under clause 18.2 and clause 25. Clause 18.2 stipulates
the minimum annual salary that is required to be paid to
a managerial staff employee. Clause 25 is the salaries
absorption clause, where payment of at least an
additional 25% above than the minimum salary under
clause 18.2, exempts the employer from providing
to the employee the benefit of terms and conditions
within a range of clauses of the HIGA including - Breaks,
Allowances, Overtime, Penalty Rates, Annual Leave
Loading and additional public holiday arrangements.
“It’s important for employers
to classify their employees
in accordance with the
correct classification level
of the HIGA.”
There are some positions which are specifically
excluded from the managerial classification of the
HIGA and would therefore be considered award free.
Positions that are excluded from award coverage
include an employee who is required to undertake the
duties of senior management or is responsible for a
significant area of the operations of one or more hotels.
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