Hospitality All-In Rate Agreement — Is This Legal?
Last updated: March 2026 · MA000009
It can be — but the conditions are strict and most all-in rates don't actually meet them. An all-in rate arrangement in hospitality is a single hourly rate that purports to cover all award entitlements including penalty rates, allowances, and overtime. For it to be legal, it must demonstrably exceed every award entitlement in every possible scenario — including public holidays. Most don't.
If you're on an all-in rate in hospitality — this applies to you.
The rule
An all-in rate is legal under the Hospitality Award only when:
- The rate is higher than every applicable award rate across every shift type — including the highest penalty scenarios (2.25× public holiday rate)
- The assessment covers all allowances that might apply
- The arrangement is genuinely better off overall for the employee compared to the award
- For casuals, the 25% loading is embedded in the comparison
The public holiday rate is the critical test. At Level 2 casual, that's $56.88/hr. Any all-in rate that falls below this fails to cover public holiday shifts.
If your all-in rate doesn't clearly exceed the public holiday rate for your level, See if your all-in rate is compliant →
How to check your all-in rate
Step 1: Find your classification level. See Hospitality Award classifications guide
Step 2: Check the public holiday rate for your level from the rates table. See Hospitality Award pay rates
Step 3: If your all-in rate is lower than the public holiday rate for your level, the arrangement fails for public holiday shifts.
Step 4: Also check your Sunday rate. Even if the all-in covers weekdays, it may fall short on Sundays.
Common all-in rate failures
Rate set above ordinary but below Sunday or public holiday rate
The most common failure. A rate of $38/hr clears the ordinary casual rate at Level 2 ($31.60) but falls well short of the public holiday rate ($56.88/hr).
Arrangement was agreed verbally at hire, never formally assessed
Many all-in arrangements were never properly calculated against the full award. Both parties assumed the rate was compliant without checking.
Allowances not included in the assessment
Even if penalty rates are covered, a split shift or meal allowance that applies in some shifts can make the arrangement non-compliant on those days.
What this costs you
An all-in rate of $38/hr that doesn't cover the public holiday rate at Level 2 ($56.88/hr) leaves a gap of $18.88/hr on every public holiday hour worked. Over 6 public holiday shifts per year at 8 hours each: approximately $906 in underpayment — from public holidays alone, before accounting for any Sunday shortfalls.
Frequently asked questions
My contract says my all-in rate covers all entitlements — is that enforceable?
Only if the rate actually does cover all entitlements. A contractual claim that the rate is all-inclusive doesn't make it legally sufficient if the numbers don't support it.
How do I get my employer to show me the calculation?
Ask in writing. Request a written statement demonstrating how the all-in rate covers the highest penalty scenario applicable to your role. If they can't or won't provide it, that's informative.
If the all-in rate is insufficient, can I claim back pay?
Yes — up to 6 years. The shortfall is the difference between your all-in rate and what the award requires for each affected shift type.
Don't guess — compare your all-in rate against every shift type you work.
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