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Geelong has become a hospitality hot spot offering superior coffee and cuisine choices. It’s a bursting industry with satisfied, self-proclaimed ‘foodies’ making a fortune on their cakes, desserts and turmeric lattes.

Owning a café or restaurant brings a nonstop lifestyle consumed by orders, wages, overhead costs and of course, taxes. Next Level Accountants, Geelong, understands the challenges that come with owning a small business whether it be Geelong’s smallest café or most prestigious restaurant. Having ample experience with the hospitality industry, Next Level Accountants receives many queries from clients about wages and awards for casual, part-time and full-time employees.

As an employer, it is your responsibility to pay your employees correctly and stay up to date. This includes employee super guarantee contributions and entitlements.

Are you wondering how you calculate what pay your employees require? This isn’t something that an accountant can tell you. However, services such as Employsure can determine each employee’s classification under the award, which then enables us to ensure your payroll  and staff entitlements are calculated correctly.

There are different classifications that fall under awards, which reflect the correct wages and entitlements. The Fair Work Commission has updated the Hospitality Industry Award 2010 which took effect 1st January, 2018. Such changes include a more flexible rostering threshold for part-time employees and overtime penalty rates for casual employees. To assist you in determining your employees’ entitlements, you can download the Pay Guide from the Fair Work Ombudsman.

As for determining whether your employee is full time, part-time or casual, please find below, a detailed table outlining differences between classifications:

Casual employee

-        No guaranteed work hours
-        Works irregular hours
-        No sick or annual leave entitlements
-        Can end employment without notice (from both employee or employer’s point of view)
-        Higher hourly rate
-        2 days unpaid carer’s/compassionate leave
-        Unpaid community service leave
-        Long-term casual employees can formalise changing to part-time or full-time employment but don’t automatically become permanent employees
-        After 12 months of regular employment, the employee can take parental leave.

Part-time employee

-            Ongoing employment
-            Regular hours
-            Entitled to paid sick and annual leave
-            Must give or receive notice to end employment as per contract agreement
-            Works, on average, less than 38 hours per week
-            Entitled to same benefits as full-time employees but on a pro-rata basis
-            Permanent employee/ on a fixed contract

Full-time employee

-        Ongoing employment
-        Regular hours (38+ hours) 
-        Entitled to paid sick and annual leave
-        Must give or receive notice to end employment as per contract states
-        Permanent employee/on a fixed contract

Next Level Accountants understands the importance of not only classifying your employees correctly, but also paying them correctly. If you have any queries about your Geelong café or restaurant’s employee entitlements, please contact your Geelong accountant.