Employers can choose to pay a loaded rate to some full-time adult employees instead of certain entitlements under the Hospitality Award.

For information on who can be paid loaded rates and what entitlements they cover, please see Loaded rates under the Hospitality Award.

If an employer wants to introduce loaded rates, they have to consult with all their affected employees at least 7 days before they start.

Employers have to provide each employee with a written loaded rate arrangement in accordance with the form in Schedule J of the award.

The form has to include:

• names of the employer and employee
• employee’s classification or wage level
• loaded rate range of days
• loaded rate maximum weekly hours
• loaded rate percentage
• ordinary hourly rate
• loaded rate (ordinary hourly rate x loaded rates percentage).

Example: making a loaded rate arrangement

Renee runs a bed and breakfast and has 4 full-time adult staff. Each staff member is classified as Level 3 under the Hospitality Award.

She tells her staff that she will start paying them a loaded rate.

Renee arranges a meeting with her employees and their representatives to talk about how the arrangement will work. She explains that they will be paid a single higher rate for most of their hours instead of different rates for each shift. Renee tells her employees that the arrangement will start in 7 days’ time.

The employees discuss the arrangement with Renee and talk through how it will work. Renee then sends them each a copy of their completed Loaded Rate Arrangement form.

Record-keeping

The employer has to keep a copy of the loaded rate arrangement and any documents ending or changing the arrangement as a time and wages record.

The employer also has to keep a copy of the employee’s start and finish times of work and their unpaid breaks. This record needs to be signed by the employee or acknowledged as correct in writing (including by electronic means) by the employee each pay period or roster cycle.

Changing a loaded rate arrangement

An employer can change a loaded rate arrangement by giving 2 weeks’ written notice of the new arrangement. The usual rules about consultation when changing rosters or hours of work apply.

Ending a loaded rate arrangement

A loaded rate arrangement can be terminated:

• at any time by written agreement between the employer and employee
• by the employer giving 2 weeks’ written notice.

For more information on loaded rates in the Hospitality Award, please see:

• Loaded rates under the Hospitality Award
• Loaded rate payments under the Hospitality Award