A general overview of the Fitness Award

The Fitness Industry Award 2020 applies to a wide range of roles within the fitness sector, ensuring that employees receive fair pay and appropriate working conditions tailored to their specific industry needs. The Fair Work Ombudsman oversees compliance with this award to ensure all parties adhere to its standards.

This article offers a general overview of the key components of the Fitness Industry Award, including award coverage, different types of employment, guidelines for ordinary hours and rostering, minimum wage requirements, applicable allowances, superannuation, and leave entitlements. Understanding these aspects is central to meeting legal requirements and maintaining fair and consistent employment practices within your fitness business.

For more detailed insights, you can find links throughout this article to comprehensive guides on each specific topic.

Note: The information provided in this article is accurate as of 03/09/2024. As award conditions and rates are subject to change, please refer to the latest version of the Fitness Industry Award 2020 for the most current information.

Fitness Award coverage

The Fitness Industry Award covers a variety of roles within the fitness sector, ensuring that employees receive fair wages and working conditions tailored to their specific job functions.

Who’s covered

• Fitness instructors and personal trainers: Conduct fitness classes, provide personal training, and offer exercise guidance.
• Group fitness coaches: Provide group training services, such as yoga, pilates, and aerobics.
• Aquatic centre staff: Manage and conduct swimming lessons, aquatic fitness classes, and ensure safety in aquatic environments.
• Sports coaches and instructors: Provide tennis coaching or classes like gymnastics and martial arts.

Who isn’t covered

• Administrative or operational support staff: Provide support outside of fitness-specific roles, such as marketing executives at a corporate office.
• High-level executives: Senior managers and executives.
• Employees under enterprise awards: Staff covered by enterprise-specific agreements, such as those in large gym chains with bespoke agreements.
• State public sector employees: Those covered by state-specific public sector awards or transitional awards.
• Employees covered by other awards: Roles like cleaners and security staff in gyms, who fall under different awards, such as the Cleaning Services Award or Security Services Industry Award.

When multiple awards could apply, employers should choose the award that most closely matches the employee’s specific job duties and work environment.

Practical example: James works as a fitness instructor at a local gym, leading group fitness classes and offering personal training sessions. Although he spends about 20% of her time handling administrative tasks like scheduling and member communication, her primary duties involve direct fitness instruction. Therefore, her role falls under the Fitness Industry Award.

Learn more about Fitness Industry Award coverage

Employment types under the Fitness Industry Award

The Fitness Award defines several employment types to accommodate different work arrangements:

• Full-time: These employees work on a regular and ongoing basis with consistent schedules and job security.
• Part-time: These employees work fewer hours than full-time staff, with specific hours outlined in their contracts. They receive benefits proportionate to the hours they work.
• Casual: Casual employees work on an as-needed basis without guaranteed weekly hours. They receive a higher hourly rate, known as casual loading, to compensate for the lack of regular hours and job security.

The award also covers on-hire employees and trainees. 

Fitness Industry Award ordinary hours

The Fitness Industry Award outlines specific guidelines for ordinary hours across different employment types, promoting consistency and fairness in the fitness sector.

• Full-time employees: Typically work up to 38 hours per week, averaging these hours over a four-week period if necessary.
• Part-time employees: Work fewer than 38 hours per week with a minimum shift length of three hours. Both the employee and employer must agree on their hours and availability in writing.
• Casual employees: Typically work up to 38 hours per week, with a minimum engagement period of three hours. Some roles, like certain instructor or trainee positions, have a minimum engagement of one hour.
• On-hire workers: Follow the ordinary hours outlined in their contract with the staffing agency, which should mirror the conditions of directly employed staff performing similar roles.
• Apprentices/trainees: Generally adhere to the ordinary hours set for full-time or part-time employees, as defined by their training agreements.

Employees can work their ordinary hours over any five days of the week, with specific timeframes set between 5:00 AM and 11:00 PM from Monday to Friday, and between 6:00 AM and 9:00 PM on Saturday and Sunday. Employees shouldn't exceed 10 hours of work in a single day. 

The award also permits broken shifts, provided employers divide the shift into no more than two parts, with a minimum total shift length of three hours, excluding meal breaks. The span from the start of the first part to the end of the second part mustn't exceed 12 hours.

Rostering under the Fitness Industry Award

The Fitness Industry Award outlines specific guidelines for managing employee rosters and breaks:

Rostering guidelines

• Regular hours: Full-time and part-time employees must have regular, predictable hours agreed upon in writing.
• Notice periods: Employers should provide at least seven days’ notice for roster changes, with exceptions for emergencies or mutual agreements.
• Flexibility: Both employers and employees can agree to adjust work hours to meet operational and personal needs.
• Rostered days off (RDOs): Employers and employees can establish RDOs, documented in time and wage records, taken in full or part-day amounts, or accrued for future use.

Breaks and rest periods

• Unpaid meal breaks: Employees get a 30-60 minute unpaid meal break within five hours of starting work. If they work through this, their employer must pay them double their minimum rate.
• Paid rest breaks: Employees have a right to two 10-minute paid rest breaks per day - one before and one after the meal break. This doesn't apply to a casual employee working three hours or less.

Learn more about Fitness Award employment types, ordinary hours, and rostering

Fitness Industry Award pay rates

The Fitness Industry Award sets minimum wages to ensure fair compensation across various roles within the fitness sector. Adult employees aged 21 and over, for example, earn between $891.50 and $1,222.80 per week, depending on their classification level. Junior employees under 21 receive a percentage of the adult rate; for example, an 18-year-old pool lifeguard earns 75% of the adult rate. Apprentices' pay varies by the training year, with rates set according to the specific training package and qualifications. Employees assigned to perform duties at a higher classification level must receive compensation at the higher rate for the duration of those duties.

The award also specifies payment terms to maintain consistency. Employers must pay wages in line with a weekly or fortnightly pay period, with the option for a monthly pay period if agreed upon. Acceptable payment methods include cash, cheque, or electronic transfer. Upon termination, employers must pay all outstanding wages and entitlements within seven days, irrespective of the pay period, to ensure timely compensation.

See full list of Fitness Industry Award pay rates

Allowances under the Fitness Industry Award

The Fitness Award includes various allowances to ensure fair compensation for additional duties or work-related expenses. For instance, employees working overtime receive a $14.59 meal allowance unless their employer provides a meal, and those working split shifts earn an extra $16.67 per day, plus $2.15 for excess fares. Employees on first aid duty receive an additional $3.14 per day to compensate for the responsibility. The award also covers vehicle allowances ranging from $0.32 and $0.98 for any employee using their own motor vehicle for work.

Additionally, employees required to sleep at the workplace receive a sleepover allowance equivalent to three hours of pay for an eight-hour sleepover, with overtime rates applied for work exceeding two hours during the sleepover period. It's important to note that these are just some of the allowances payable under the award. 

See full list of Fitness Industry Award pay allowances

Fitness Industry Award superannuation

Superannuation is a key part of employee compensation under the Fitness Award. Employers must contribute at least 11.5% of an employee’s ordinary time earnings (OTE), increasing to 12% by July 2025, for employees earning $450 or more per month and who are over 18, or under 18 and working more than 30 hours per week. Employers should make contributions to one of the specified super funds, like AustralianSuper or Hostplus, unless legislation requires a different fund.

Employers must continue super contributions during periods of paid leave and up to 52 weeks for work-related injuries or illnesses if the employee receives compensation or regular payments. Employees can also choose to make voluntary contributions from their post-tax income, which employers must pay within 28 days after the end of the month in which they deducted them.

Fitness Industry Award overtime and penalty rates

The Fitness Award ensures fair compensation for employees working beyond their regular hours or at less desirable times through specific overtime and penalty rates.

Overtime rates

Overtime applies under several conditions: working outside the standard spread of hours in an employee's schedule, exceeding an average of 38 hours per week over a four-week period, working more than 10 hours in a single day, or exceeding the agreed hours in a part-time contract. For the first two hours of overtime worked from Monday to Saturday, employees receive 150% of their minimum hourly rate (time and a half). An employer must pay additional overtime hours at 200% (double time). All overtime on Sundays, rostered days off, and public holidays an employer is to pay at 200% and 250% of the minimum hourly rate, respectively.

Practical example: If a full-time fitness instructor works three extra hours on a Monday, they receive 150% of their hourly rate for the first two hours and 200% for the third hour. If their regular hourly rate is $30, they would earn $90 for the first two hours and $60 for the third hour, totaling $150 for three hours of overtime.

Employees may choose to take time off instead of overtime pay, provided both the employer and employee agree in writing. This time off must be equivalent to the overtime hours worked and used within six months. If an employee doesn't get a 10-hour break between shifts, an employer should pay them at double time until they can take a sufficient break.

Penalty rates

Penalty rates apply for work performed during less desirable times, even if it doesn’t qualify as overtime. Full-time and part-time employees earn 125% of their hourly rate for work on Saturdays, while casual employees earn 150%. Both full-time and part-time employees earn 150% for work on Sundays, with casuals receiving the same rate. Employers compensate public holiday work at 250% for full-time and part-time employees and 275% for casuals.

Practical example: A casual employee personal trainer works five hours on a public holiday. If their regular rate is $30/hour, the penalty rate of 275% means they earn $82.50 per hour, totaling $412.50 for those five hours.

Learn more about Fitness Industry Award overtime and penalty rates

Fitness Industry Award leave entitlements and public holidays

The Fitness Industry Award provides a comprehensive range of leave entitlements and public holiday provisions to support employees' work-life balance, aligning with the National Employment Standards (NES).

Annual leave

Full-time employees have a right to four weeks of paid annual leave each year, while part-time employees accrue leave on a pro-rata basis based on their working hours. During annual leave, employees receive their regular pay plus a 17.5% annual leave loading. Employers can require employees to take leave during a shutdown period with 28 days’ notice or when leave accruals exceed eight weeks. If they can't reach an agreement with an employee to reduce excessive leave, employers can direct them to take leave, ensuring at least six weeks remain.

Other types of leave

Employees have a right to 10 days of paid personal/carer's leave annually for personal illness or to care for a family member. Compassionate leave allows for two days of paid leave per occasion for a death or serious illness in the immediate family. Parental leave provides up to 12 months of unpaid leave, with the possibility to request an additional 12 months. Community service leave is available for activities such as jury duty or emergency management. Employees can also take up to 10 days of paid family and domestic violence leave each year for necessary support.

Public holidays

Employees (excluding casual employees) have a right to a paid day off on public holidays. Employers may request employees to work on public holidays, but employees can refuse based on reasonable grounds. Both parties can agree to substitute another day for a public holiday. Employers must pay employees working on public holidays at the applicable penalty rate, with a minimum engagement of four hours to ensure fair compensation. 

Learn more about Fitness Industry Award leave entitlements

Key considerations for the Fitness Industry Award

Understanding the specifics of the Fitness Industry Award is imperative for employers to ensure compliance and avoid potential issues. Here are some important details that can be easy to overlook:

• Award coverage: The Fitness Industry Award applies to a range of roles within fitness centres, sports coaching, and related activities. However, not all employees in a fitness-related environment fall under this award. For example, administrative or marketing staff working at a corporate office of a fitness chain may not fall under this award.
  
  Why it matters: Employers must carefully assess each job role to determine the correct award coverage. Misclassifying employees under the wrong award can lead to non-compliance, underpayments, and potential legal and financial consequences.

• Shift break requirements: The Fitness Industry Award mandates that employees must have a minimum 10-hour break between shifts. If there's a requirement for employees to work without this 10-hour break, their employer must compensate them at 200% of their minimum hourly rate until they receive a 10-hour rest.
  
  Why it matters: Overlooking the 10-hour break requirement can result in non-compliance, leading to financial penalties and potential legal issues. Proper scheduling is essential to meet this rule and avoid disputes.

• Public holiday penalty rates for casual employees: Employers must pay casual employees in the fitness industry 275% of the minimum hourly rate for all hours worked on public holidays, which is higher than in many other sectors.
  
  Why it matters: Not paying the correct public holiday rates for casual employees can lead to significant underpayments and legal repercussions. Employers must accurately apply these penalty rates to ensure fair compensation and avoid financial penalties.

• No casual loading on overtime: Casual employees don't receive the standard casual loading on overtime hours. Although casual employees earn a higher base rate because of casual loading, employers exclude this additional loading from overtime pay calculations.
  
  Why it matters: Misunderstanding this rule can lead to incorrect payroll calculations, resulting in either overpayments or underpayments. Accurate calculation of overtime rates for casual employees is critical to maintaining compliance and preventing disputes.

Simplify Fitness Industry Award compliance with Rippling

Managing compliance with the Fitness Industry Award can be complex. Rippling’s all-in-one HRIS platform simplifies this process, helping your business stay compliant and ensuring that employees receive fair treatment according to the award’s guidelines. Key features include:

Comprehensive coverage and compliance tools

Rippling’s platform offers employee classification and real-time compliance alerts, keeping you updated with any changes in award coverage. With detailed reporting, audit support, and customisable templates, you can ensure that your business remains compliant with all facets of the Fitness Industry Award.

Streamlined rostering and leave management

With features like time and attendance tracking and leave management, Rippling ensures that all processes align with the award’s stipulations, reducing manual work and consequent errors, and enhancing operational efficiency.

Simplified payroll, overtime, and superannuation

Rippling simplifies the complexities of payroll, including overtime and superannuation compliance. The platform automatically adjusts pay, overtime, and penalties according to award requirements, and calculates superannuation contributions accurately.

Real-time insights and integration

Rippling’s seamless integration with existing systems ensures accurate financial management, offering peace of mind and operational flow improvements.

This blog is based on information available to Rippling as of September 12, 2024.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.