As part of the agreement, the casual weekend penalty rates will increase in five instalments starting from 31 January 2022 and finishing on 31 December 2023. From 3 November 2021 to 30 January 2022, casuals will continue to be paid their usual weekend penalty rate.
Currently, under the Hair and Beauty Award, a casual’s weekend penalty rate doesn’t include their 25% casual loading. This is changing so that casuals who work weekends are now entitled to be paid a weekend penalty rate that also includes their casual loading to compensate for permanent entitlements like sick and annual leave.
The announcement follows a decision made by the Fair Work Commissioner back in October after a process involving unions and industry associations.
Back in January 2020, Fair Work invited the Australian Workers’ Union (the AWU), the Shop, Distributive and Allied Employees Association (the SDA) and Hair and Beauty Australia (HABA) to provide notice as to whether they wished to provide further materials in relation to the Saturday and Sunday penalty rates applicable to casual employees covered by the Hair and Beauty Award.
In July, Hair Stylists Australia (which is powered by the AWU) announced an agreement had been reached between themselves, the SDA and HABA which they would put forward to the Fair Work Commission.
HSA said a total of around $5.75 per hour will be added to weekend casual rates, and at the end of the phasing-in period, this means a casual hair stylist working a full eight-hour day over the weekend would take home an extra $92.
Meanwhile, the Hair and Beauty Award has already increased by 2.5% from 1 November alongside a whole bundle of industry awards as part of its Annual Wage Review 2021, as announced back in June.