The end of the year should be a chance for salon owners to recharge, not a scramble to fix payroll mistakes. But every December, many Australian salons unintentionally miscalculate holiday pay, leading to Fair Work breaches, backpay claims, or costly corrections during the busiest period of the year.
Using data from Employment Hero, we’ve outlined the five most common holiday pay mistakes affecting hairdressing and barbering businesses, plus simple steps to stay compliant under the Hair and Beauty Award.
1. Misunderstanding public holiday penalty rates
One of the most frequent payroll issues in salons is confusion around public holiday penalty rates. Many salon owners still believe penalties don’t apply to casuals (they do) or assume they can “swap” hours later (they can’t).
Under the Hair and Beauty Award, all employee types receive public holiday penalties, and these penalties differ across states and regions.
Get it right:
Check local public holidays, confirm Award entitlements, and calculate penalty rates before running payroll.
2. Double dipping on annual leave loading
Annual leave loading (17.5 percent) often creates confusion, especially when holidays overlap with public holiday rates. Some salons overpay, while others fail to apply loading at all.
Get it right:
Leave loading applies to permanent staff only. Casual employees already receive their 25 percent casual loading. Make sure your payroll system applies these loadings separately to avoid costly double ups.
3. Misunderstanding “on call” or recall rules
Salons rarely use formal on call arrangements, but many owners ask staff to “stay available just in case.” This can unintentionally trigger obligations under certain Awards, including minimum recall payments.
Get it right:
If you expect staff to return to work or remain available, document the arrangement clearly, set boundaries, and track any recall hours accurately.
4. Applying the wrong state’s public holidays
For salons operating across multiple locations or border regions, a common mistake is applying the wrong state or regional public holidays. Payroll must reflect where the employee works, not where the head office is based.
Get it right:
Confirm region-specific holidays such as QLD Show Days, VIC AFL Eve, or SA Proclamation Day before processing pay.
5. Skipping the pre-Christmas payroll audit
Most payroll errors occur not because salon owners are careless, but because they are overwhelmed at the end of the year. A simple pre-Christmas payroll audit can prevent Fair Work issues before they start.
Get it right:
-
Confirm every employee’s correct Award classification
-
Check leave balances and loading rules
-
Ensure public holiday rates are set correctly in your payroll software
-
Review rosters for minimum hour requirements and correct breaks
With Fair Work increasing spot checks on December payrolls, accuracy now protects your salon later.
Not an AHC Member yet?
The holiday period is one of the most complex times for HR, IR, and payroll compliance in hairdressing and barbering. With changing entitlements, penalty rates, and leave rules, even a small oversight can lead to significant financial and legal consequences.
AHC members receive unlimited HR and IR advice, Award interpretation, and compliance guidance—support designed specifically for salons, barbershops, and beauty businesses.
If you’re not yet a member, now is the ideal time. Don’t navigate the busiest period of the year alone or risk avoidable mistakes.
Join the AHC today and protect your business with expert support behind you.
