The national minimum wage will increase by 3% to $19.49 per hour. This amounts to a $21.60 increase per week for full-time workers. Consult with hospitality industry consultants to avoid underpayments and “wage theft.”
In March, Restaurant and Catering Association former and new CEOs Juliana Payne and Wes Lambert called for a wage increase freeze, saying it would significantly increase the financial pressures faced by restaurants, cafés and catering businesses.
Lambert said he was concerned that the increase will further risk the viability of many restaurants and cafes as the 2019 Annual Wage Review Decision did not just encompass the 2% of employees on minimum wage but also those on award wages in the hospitality industry. Restaurant and café owners have shouldered the past three years with CPI and increases of 3.3%, 3.5% and 2.4%.
Fair Work’s priorities for the next financial year are cafés and fast-food restaurants. Following intelligence that businesses were at risk of breaching workplace laws, inspectors have conducted surprise audits of about 80 businesses in Geelong this week. They audited businesses that hire university students such as restaurants, cafés, fast food and retail and checked if they are paying their staff correctly. Make sure your business stays compliant and speak to hospitality industry consultants.
An estimate of 2.2 million employees are impacted by the Fair Work decision. The Australian minimum wage will increase from $719.20 per week to $740.80 a week starting 1 July 2019. According to the Fair Work Commission, they have decided on a lower increase than that of last year because of the changes in the country’s economic environment and drop in GDP growth and inflation.
The increase is not expected to result in any adverse inflationary or employment outcome but will improve the living standards of employees. It is a welcome pay increase for low-paid workers, especially because of the looming penalty rate cuts in the next few weeks.
Make sure your business stays compliant. As you look for different ways to grow and improve your business, seeking professional advice from hospitality industry consultants could prove to be an important and helpful decision.
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