Employees who are classified as Managerial Staff (Hotels) in the Hospitality Award can be paid a salary that’s at least 25% higher than the minimum annual salary for hotel managers set out in the award.

When this happens, the hotel manager won’t receive some award entitlements that normally apply to other hospitality employees. This arrangement is known as salary absorption.

For more information about who is considered a manager under the Award and what businesses are classed as hotels, see Managers in the Hospitality Award.

Salaries for managers under the Hospitality Award

When a hotel manager is paid in accordance with the salary absorption provisions, they won’t be entitled to the following terms and conditions of the award:

• part-time employment provisions
• ordinary hours of work and rostering arrangements
• breaks
• allowances
• overtime payments
• penalty rates
• payment for annual leave loading
• public holiday arrangements that apply to other full-time employees
• deductions for employee accommodation and meals.

Salary comparison to award entitlements

An employer isn’t required to compare a hotel manager’s salary absorption to what they would otherwise be paid under the Hospitality Award. This is different to an employee who is paid an annualised wage.

For more information see Annualised salaries.

Other terms and conditions of employment for managers

Minimum time off and public holidays

A hotel manager must be rostered for at least 8 days off in each 4 week work cycle. These days off don’t need to be consecutive.

If a hotel manager is required to work on a public holiday:

•  they must receive paid time off equal to the time worked, and
• the time off must usually be taken within 28 days.

The employer and manager can agree in writing to extend this 28 day period to up to 6 months. If the time off isn’t taken within the agreed period, it must be paid out.

Leave entitlements

Hotel managers receive all entitlements under the National Employment Standards (NES). This includes entitlements such as annual leave and personal/ carer’s leave.

The Hospitality Award doesn’t provide any additional leave entitlements for hotel managers beyond those in the NES.

Motor vehicle allowance and reimbursement for reasonable expenses

Hotel managers are entitled to a motor vehicle allowance if they’re required to use their own vehicle when performing their duties. The allowance must be paid for each kilometre travelled.

Hotel managers may also be entitled to reimbursement for money they reasonably spent for or on behalf of their employer. This may include approved travel or other out of pocket costs. If an employer has an approved reimbursement policy, the manager must comply with the policy.

These payments are separate from wages and don’t form part of a manager’s salary.