The AHA has welcomed the new Loaded Rates provision added to the Hospitality Award.

Amendments to the Hospitality Award by the Fair Work Commission including the introduction of Loaded Rates have been welcomed by the Australian Hotels Association (AHA).

Now in effect, the adoption of the proposal suggested by the AHA means businesses can now offer loaded rates to full-time employees at Level 3 or above in place of some provisions such as penalty rates for working weekends, while overtime rates remain in place. Five new tiers of rates have been introduced ranging from 10.2% to 31.5% above the award rate.

The change is also an effort to simplify the system for employers and improve compliance, especially for businesses who do not employ dedicated workplace relations staff.

Australian Hotels Association National CEO, Stephen Ferguson.

AHA Chief Executive Officer, Stephen Ferguson, said the overwhelming majority of businesses already do the right thing but the new loaded rates will further improve compliance by making pay rates easier to understand.

“Initiatives such as loaded rates are critical in preventing unintended breaches of workplace laws,” Ferguson said.

“The 65 per cent of Australian hotels that are family-owned and operated are the biggest beneficiaries from loaded rates, as they won’t have to spend days labouring over complex pay rates to ensure they are compliant.

“Today’s decision will ensure businesses can spend more time running their hotels, bars, taverns, pubs and restaurants and less time pushing paper – this directly assists with job creation.”