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. 14 | Hotel SA | www.ahasa.asn.au Back to Contents
W O R K P L A C E R E L A T I O N S Indicative positions which are excluded from award coverage include: company secretary, chief accountant, human resources manager, financial controller, venue manager, general/hotel manager, executive assistant manager, regional manager. WHY IS IT IMPORTANT FOR EMPLOYERS TO CLASSIFY EMPLOYEES CORRECTLY? It’s important for employers to classify their employees in accordance with the correct classification level of the HIGA. A failure to pay the employee at the correct classification level will result in potentially significant backpayment of wages and entitlements. An employee also has the potential to make a claim in the South Australian Employment Tribunal or Court for an underpayment of wages and entitlements arising from being paid at the wrong classification level. Section 45 of the Fair Work Act 2009 (Cth) provides provisions which prohibit an employer from contravening a term of a modern award and can result in not only the awarding of backpay to an incorrectly classified employee under an award but also the provision of civil penalties applying to the employer if found guilty of a contravention. WHAT CAN EMPLOYERS DO TO ENSURE THEY CLASSIFY EMPLOYEES CORRECTLY? To ensure they are classifying employees correctly under the HIGA, it is imperative that employers undertake the following measures: • Ensure they have a job description which clearly outlines the duties and responsibilities that the employee is required to perform in their role and the level of qualifications they may be required to hold. • Ensure that based on the employees’ duties, level of responsibility and any appropriate level of training or qualifications required, the employer reads through Schedule A of the HIGA to determine the correct classification level for the employee. • Prior to the new employee starting obtain evidence of any prior training certifications and or trade qualifications. • Ensure that the employee’s HIGA classification level is clearly articulated in their contract of employment. • Contact the AHA|SA if further assistance or advice on employee classification levels is required. Back to Contents www.ahasa.asn.au | Hotel SA | 15
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W O R K P L A C E R E L A T I O N S<br />
Indicative positions which are excluded from award<br />
coverage include: company secretary, chief accountant,<br />
human resources manager, financial controller, venue<br />
manager, general/hotel manager, executive assistant<br />
manager, regional manager.<br />
WHY IS IT IMPORTANT FOR EMPLOYERS TO<br />
CLASSIFY EMPLOYEES CORRECTLY?<br />
It’s important for employers to classify their employees<br />
in accordance with the correct classification level of<br />
the HIGA. A failure to pay the employee at the correct<br />
classification level will result in potentially significant<br />
backpayment of wages and entitlements.<br />
An employee also has the potential to make a claim in<br />
the South Australian Employment Tribunal or Court for<br />
an underpayment of wages and entitlements arising<br />
from being paid at the wrong classification level.<br />
Section 45 of the Fair Work Act 2009 (Cth) provides<br />
provisions which prohibit an employer from<br />
contravening a term of a modern award and can result<br />
in not only the awarding of backpay to an incorrectly<br />
classified employee under an award but also the<br />
provision of civil penalties applying to the employer if<br />
found guilty of a contravention.<br />
WHAT CAN EMPLOYERS DO TO ENSURE THEY<br />
CLASSIFY EMPLOYEES CORRECTLY?<br />
To ensure they are classifying employees correctly<br />
under the HIGA, it is imperative that employers<br />
undertake the following measures:<br />
• Ensure they have a job description which clearly<br />
outlines the duties and responsibilities that the<br />
employee is required to perform in their role and the<br />
level of qualifications they may be required to hold.<br />
• Ensure that based on the employees’ duties, level of<br />
responsibility and any appropriate level of training or<br />
qualifications required, the employer reads through<br />
Schedule A of the HIGA to determine the correct<br />
classification level for the employee.<br />
• Prior to the new employee starting obtain evidence<br />
of any prior training certifications and or trade<br />
qualifications.<br />
• Ensure that the employee’s HIGA classification level<br />
is clearly articulated in their contract of employment.<br />
• Contact the AHA|<strong>SA</strong> if further assistance or advice<br />
on employee classification levels is required.<br />
Back to Contents www.ahasa.asn.au | <strong>Hotel</strong> <strong>SA</strong> | 15
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