A salary is often viewed as an all-encompassing wage rate where the employee receives the same wage rate weekly regardless of if they are on leave or the hours of work which are undertaken.
However, unlike most office jobs which are award-free, the hair and beauty industry is underpinned by the Hair and Beauty Award, says Vanessa Rengger, sales and marketing manager of Hair and Beauty Australia (HABA).
“This outlines minimum provisions that an employee must receive, and an employer must incorporate these provisions when calculating a salary,” she says.
“The Hair and Beauty Award does not have specific provisions for salaries, however employers need to understand the requirements if they wish to place an employee on a salary. They will need to incorporate penalty rates, allowances, consider any overtime which may be done and also annual leave loading.
“Salaries should be written into the contract and specifically outline that the salary incorporates the relevant penalty rates, allowances and so forth.
“But salaries should not incorporate anything that may be taken away- such as bonuses or commissions structures which may vary at the discretion of the employer.
“In order to ensure that salaries meet the minimum requirements, HABA advises that salaries should be reviewed every financial year to reflect the minimum wage increase, if applicable.
“Once a salary is set and is a higher rate of pay, an employer is generally unable to reduce the take home pay at their own discretion.”
For further information visit HAIRANDBEAUTYAUSTRALIA.COM.AU