Plain guide · Hospitality and the award

Am I paying my hospitality staff correctly?

Hospitality pay is rarely wrong on purpose. It is a base rate plus a stack of loadings and penalties, each one able to drift on its own. Here is where it actually goes off and how to check yours.

Two awards, not interchangeable

The first question is which award actually covers the venue. It is easy to get wrong. The Hospitality Industry (General) Award covers pubs, hotels, clubs, accommodation and catering. Cafés and restaurants serving seated diners sit under a separate instrument, the Restaurant Industry Award. The rates, the loadings and some of the rules differ between the two.

Coverage turns on what the business actually does, not on what it feels like or what the venue next door is registered under. A café attached to a hotel can sit under a different award again depending on how it is run. Get the wrong award and every rate calculated from there is wrong before anyone has looked at a single shift.

Where hospitality pay actually drifts

Once the award is settled, the base rate is the easy part. What actually moves pay is the stack sitting on top of it. Each layer can go stale independently of the others.

Casual loading. A flat 25% on top of the base rate for every casual hour worked.
Weekend penalties. Saturday and Sunday are paid at a higher percentage of the base rate. The casual loading stacks on top of that, not the other way around.
Public holiday penalty. The highest loading in the award and the one most often paid at the wrong base figure after a rate rise.
Evening and night loadings. A separate percentage on top for hours worked into the evening and overnight, calculated off a fixed reference rate in the award rather than the person's own pay.
Overtime and split shifts. Extra hours and broken shifts each carry their own allowance or penalty, on top of everything above.
Where the gap opens

A venue gets the base rate right and most weekend loadings roughly right, then the evening loading or the split shift allowance sits untouched because it is a smaller line nobody revisits. One overlooked layer on a roster that runs seven nights a week adds up fast. It adds up quietly.

How the loadings actually compound

Take a casual working a Sunday evening shift. The casual loading applies first. The Sunday penalty applies on top of that, not the other way around, because hospitality runs as a seven-day roster and weekend hours are ordinary hours paid at a penalty rather than overtime. If the shift runs into the evening, the evening loading adds again, calculated as its own separate percentage rather than a share of what the person is already being paid.

None of that is exotic. It is exactly how the award is meant to work. The risk is not the maths itself. It is running that maths correctly across a roster with dozens of people on different days, different shift lengths and a mix of casual and permanent, every single pay period.

What the law expects now and the relief in it

Since 1 January 2025, deliberately underpaying staff is a criminal offence in Australia. That sounds alarming until you read it properly. It targets deliberate underpayment, not an honest setup that has quietly drifted. The Fair Work Ombudsman recovered $358 million for more than 249,000 workers in the 2024-25 year. Fast food, restaurants and cafés have been named a high-risk priority sector for 2025-26. Hospitality is squarely in the group being watched, which makes this worth getting ahead of rather than worth losing sleep over.

There is a path built for small business. The Voluntary Small Business Wage Compliance Code protects a business with fewer than 15 employees from criminal prosecution where it follows the Code in good faith, even if a genuine underpayment is later found. Civil penalties can still apply. The criminal risk comes off the table.

The five things the Code asks for

Make a genuine effort to pay correctly. Keep up with your obligations as rates change. Keep accurate records of who is working when and under what classification. Fix anything found, promptly. And seek advice from a reliable source, such as a professional who reads awards for a living, not a general online calculator.

A Wage Compliance Check works the whole stack for your venue, casual loading, weekend and public holiday penalties, evening and night loadings, against the correct award. It tells you plainly where the roster sits and leaves you the dated record that shows you followed the Code. For the wider picture on why this matters now, see our guide on wage theft and small business.

This is general information to help you understand how hospitality pay is structured. It is not legal advice. Rates and loadings change every 1 July alongside the wage review. A roster that was correct last year should be checked again after each increase.

Common questions

How do I know if my venue is under the Hospitality award or the Restaurant award?

It comes down to what the business actually is. Pubs, hotels, clubs, accommodation and catering sit under the Hospitality Industry (General) Award. Cafés and restaurants serving seated diners sit under the separate Restaurant Industry Award. Check what the business does, not what feels closest.

Do the casual loading and the weekend penalty both apply on the same shift?

Yes. The casual loading applies to the base rate first and the weekend penalty applies on top of that. They stack rather than replace each other, which is where a lot of the drift starts.

Is the evening loading based on what the person is actually paid?

No. It is calculated as a fixed percentage of a reference rate set in the award, not as a share of the individual's own hourly rate. It is easy to calculate it the wrong way without realising.

What if some of these loadings have not been updated in a while?

You owe the difference from the date the rate changed, regardless of what was actually paid in the meantime. The right response is to fix it, back-pay the gap and keep a dated record that shows you acted.

How do I actually find out if my roster clears the award?

A Wage Compliance Check tests your actual roster, casual and permanent, against the correct award and every loading that applies and leaves you a dated record.

The relief is in the proof

Check the whole stack, not just the base rate.

A Wage Compliance Check works every loading and penalty in your award against your actual roster and leaves you a dated record. So you can trust the number and get back to running the floor.

Get a wage compliance check
or email ryan@carringtonworkforcerisk.com