How to Calculate Work Hours for Hospitality Staff

So you’ve got great staff, they’re happy with their hours (for now), and you’re wondering, how do I actually calculate work hours properly in hospitality? No matter what hospitality business you’re running, understanding how to track, calculate, and pay work hours fairly is crucial, not just for legal reasons, but also to keep your team happy and your business running smoothly.

Let’s break it down into simple steps so you can confidently manage rosters, comply with legal requirements, and understand minimum wage rates for hospitality to make sure no one’s being short-changed.

Why Calculating Work Hours Properly Matters

There’s a fair few things that come into play when calculating hospitality hours. Shifts can change at the last minute, people clock in early or stay back to help with the dinner rush, and weekend and public holiday rates come into play. If you’re not aware of the ins and outs of hospitality hourly wages or how to track time accurately, it can lead to mistakes. Mistakes that cost time, money, and trust.

Getting it right protects both your staff and your business.

Start With the Basics: What Counts as a “Work Hour”?

A work hour is any hour an employee is required to be at work performing duties, or even just waiting to perform them. It includes:

• Time spent on shift
• Mandatory training sessions
• Team meetings before or after shifts
• Set up or pack down time
• Paid breaks

Wondering about breaks? 

If you’re covered under the Restaurant Industry Award [MA000119], which most hospitality businesses in Australia are, there are clear guidelines on what does (and doesn’t) count as time worked. Here’s a quick summary:

• Unpaid breaks (typically 30 minutes) do not count as time worked
• Paid breaks (20 minutes) do count as time worked

If a staff member works (According the Fair Work Ombudsman):

Less than 5 hours: they aren't entitled to any breaks

• 5 to 10 hours: they get one unpaid break (and a paid break if their unpaid break is scheduled more than 5 hours into the shift)
• More than 10 hours: they get one unpaid break and two paid breaks (if certain timing conditions are met)

Some extra things to keep in mind:

• That paid break (if applicable) must be taken after at least 2 hours of work but before the 5-hour mark
• If a break goes over 60 minutes, that’s considered a broken work day, and the employee may be entitled to a split shift allowance

Staff must:

• Not take their unpaid break within the first hour of a shift
• Not work more than 5 hours without an unpaid break
• Not work more than 5 hours after their unpaid break without an additional paid 20-minute break

If for any reason a staff member doesn’t get their unpaid break when they should, they’re entitled to an additional 50% of their ordinary hourly rate, from the time the break should have started, until it’s taken or the shift ends.

And finally, employers must do their best to spread breaks evenly across the shift, it’s all about keeping things fair and manageable.

How to Track Hours Worked

You can’t calculate hours without a way to track them first. Here's how most hospitality businesses do it:

1. Manual Timesheets

Old-school but still used. Staff write down their clock-in/out times each shift. It's simple, but it’s also prone to errors or (ahem) the occasional exaggeration.

2. Time Clock Systems

These are electronic systems (hardware or app-based) where staff clock in and out using a code, swipe card, or fingerprint. They’re far more reliable and make it easier to export data for payroll.

3. Staffing Platforms Like Sidekicker

If you’re using Sidekicker, everything’s already tracked for you. Sidekicks clock in and out via the app, so you get verified hours, accurate to the minute, and we handle the payroll too.

Understanding Hospitality Minimum Wage in Australia

Now let’s talk about money.

If you’re wondering how much to pay your staff once you’ve calculated their hours, it’s all about staying on top of hospitality minimum wage laws in Australia.

The minimum wage for hospitality workers depends on things like:

• Age
• Classification (Level 1–6 under the Hospitality Industry (General) Award)
• Employment type (full-time, part-time, or casual)
• Day and time of the shift

Each year, the Fair Work Ombudsman reviews the Australian minimum wage. As of July 2024, the minimum wage in hospitality is around $24.10 per hour for adult permanent staff. 

Need specifics? You can always check Fair Work's Pay Calculator for the latest rates.

Understanding Classification Levels in Hospitality

Not all hospitality jobs are created equal, and that’s where classification levels come in.

A staff member’s classification level refers to the type of work they’re doing and how much experience or training they have. These levels are set out in the Hospitality Industry (General) Award [MA000009], and they help determine the minimum hourly wage each employee should be paid.

Here’s how it breaks down:

Level 1: Entry-level team members with little or no experience. Think café hands, bar attendants, or kitchen staff just starting out.

Levels 2–3: Workers with more experience who might take on added responsibilities, like senior food and beverage attendants, cooks, or experienced front-of-house staff.

Levels 4–6: These are your supervisors, chefs, and managers—the people overseeing teams, managing services, or handling more specialised tasks.

Understanding both your employees’ classification level and employment type is essential to making sure you’re paying them correctly and staying compliant with Fair Work.

Hospitality minimum wage for casual employees

Because casual workers don’t receive paid sick leave, annual leave, or guaranteed hours, they’re entitled to a casual loading on top of the base pay rate. That casual loading is currently 25%, which means casuals usually earn more per hour than their part-time or full-time counterparts. 

Here’s what that might look like:

If the base hospitality minimum wage is $24.10 per hour for an adult permanent employee…

A casual worker working the same role would typically earn around $30.13 per hour (that’s $24.10 + 25%).

It’s worth noting that casual rates can change depending on:

• The staff member’s classification level
• Whether they’re working weekdays, weekends, public holidays, or late-night shifts
• Any applicable allowances (like broken shift or uniform allowances)

Penalty Rates & Overtime

Here’s where it gets a little trickier.

In Australia, hospitality staff are often entitled to penalty rates when working:

• Late nights
• Early mornings
• Weekends
• Public holidays

For example, casuals might earn an extra 25–50% on top of their base rate on Sundays and public holidays. And if someone works more than their maximum ordinary hours (usually 38 per week for full-timers), overtime pay may apply. 

Calculating Total Hours Worked (The Easy Way)

Here’s a simple formula: (Shift End Time – Shift Start Time) – Unpaid Breaks = Total Hours Worked

Let’s say your staff member worked from 2:00pm to 10:00pm with a 30-minute unpaid break. That’s: 8 hours – 0.5 hour = 7.5 hours paid work

Multiply those hours by their correct hourly rate (including any loadings or penalties), and you’ve got your wage calculation.

If you’re using a staffing platform like Sidekicker, the calculation is done automatically, and you can be sure it aligns with current award rates.

Avoiding Common Mistakes

We understand more than anyone, hospitality is busy, and admin can fall through the cracks. Here are a few common errors to watch out for:

• Forgetting to deduct unpaid breaks
• Miscalculating penalty rates on weekends/public holidays
• Rounding hours incorrectly
• Paying incorrect rates for age/classification
• Using outdated award information

Using automated systems or staffing platforms (like Sidekicker) helps minimise mistakes and make sure you do the right thing by your employees.

Why Sidekicker Makes It Easier

Let’s face it—manual payroll is painful. With Sidekicker, everything’s streamlined:

• Sidekicks clock in/out via the app
• Hours are automatically verified and tracked
• All payments are made in line with hospitality hourly wage requirements
• We handle payroll, tax, super, and compliance, so you don’t have to

Sidekicker is your hospitality staffing shortcut. We’re the smarter, faster alternative to traditional agencies, without the added costs. 

At the end of the day, calculating work hours in hospitality is about creating fairness, staying compliant, and protecting your business.

By understanding hospitality minimum wage, using the right systems to track hours, and working with Sidekicker, you can stay ahead of the game and keep both your books and your team in great shape.

Need extra hands? Sidekicker’s here to help. Thousands of hospitality businesses already trust us to find skilled, reliable staff fast, and we’d love to help you too.