HABA: Allowances – Did You Know?

Do you know which staff allowances are required to be paid to your employees? Allowances have changed since the Fair Work Act came into effect; some allowances have changed while others have been removed.

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

Tool Allowance:

Tool allowance will only apply if an employee is required to provide their own tools. Therefore if an employer supplies the employee with all the necessary tools to carry out their duties, and the employee chooses to use their own tools due to preference, tool allowance will not apply.

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.

Hair and Beauty Australia are a not-for-profit industry association. Visit www.hairandbeautyaustralia.com.au for further information.

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