Employee Allowances — What to Pay?

Do you know which allowances are required to be paid to your employees?

Employee allowances have changed since the Fair Work Act came into effect whilst some allowances have changed while others have been completely removed, explains HABA.

The Hair and Beauty Award has a number of allowances which may need to be provided to employees who are working within Salons and Spas.

Meal Allowance: The meal allowance now varies from the previous awards which were in place in all states. Meal allowances are now only paid if an employee is required to work overtime and are not provided with at least 24 hours’ notice. Therefore if employees are aware they usually work a 10.5 hour day on a Thursday, for example, they are not entitled to a meal allowance.

If an employee is required to work overtime without 24 hours’ notice for at least one hour, they are entitled to a meal allowance. However if the overtime exceeds 4 hours, a second meal allowance is required to be paid.

If an employee can reasonably return home for a meal, meal allowance is not payable. Additionally, if an employer provides the employee with meals, meal allowance will not be relevant. Note: casuals are not eligible for a meal allowance.

Laundry Allowance: Laundry allowance no longer applies to the Hair and Beauty Industry, however if an employee is required to wear a specific uniform, the employer must supply the uniform at their own costs, or reimburse the employee for the cost of the uniform.

Transport Allowance: This allowance is applicable for any staff member who is required to use their own motor vehicle to perform their duties. This includes travelling to pick up stock for the salon or to attend off-site training.

Travelling Time: An employee who is required to work away from their usual place of employment, any time spent in extra travelling (compared to travelling from home to work) will need to be paid for at the ordinary time rate, and time and a half on Sundays or public holidays. Note this allowance does not apply for casual employees.

Managerial Allowance: Is available for an employee who is in charge for a full week. Should your employee work part of a week, this amount is pro-rata.

HAIRANDBEAUTYAUSTRALIA.COM.AU

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