The following is a statement from Hair and Beauty Australia (HABA). HABA, an industry association for hair and beauty salon owners across Australia, is an affiliate of Ai Group. HABA represented the hair and beauty industry in this FWC case through Ai Group Workplace Lawyers.
“The Fair Work Commission has varied the Hair and Beauty Industry Award to insert a schedule to phase-in increases in weekend penalty rates for casuals.
“The award variation follows the FWC’s major Penalty Rates Decision in 2017 in which the Commission decided that casual loadings and weekend penalty rates are separate and distinct forms of compensation. Subsequently, in 2020 a Full Bench of the FWC expressed the view that the current weekend penalty rates for casuals under the Hair and Beauty Industry Award do not reflect the findings of the Commission in the 2017 Penalty Rates Decision because casuals under the Award are paid the same rate as other employees for weekend work.
“In proceedings over the past two years, the FWC reviewed the weekend penalty rates for casuals under the Hair and Beauty Industry Award. HABA represented the hair and beauty industry in the case through Ai Group Workplace Lawyers.
“Ultimately, the FWC determined that, consistent with its earlier decisions, casual employees in the hair and beauty industry should be paid a 25% casual loading on top of the weekend penalty rates that apply to other employees.
“Importantly, however, the Commission endorsed an agreement reached between HABA and relevant unions to phase-in the increases over the period up to 31 December 2023, with the first instalment operative from the end of January next year. The Commission accepted HABA’s submissions that hair and beauty businesses are currently facing major challenges as a result of the pandemic and therefore the increased penalty rates need to be phased-in over a lengthy period with no increases operative before next year”, Ms Harding said.
Determination varying the Award
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