A general overview of the Fast Food Industry Award
The Fast Food Industry Award 2020 governs employment conditions for a variety of roles within the fast food sector. It ensures that employees in this industry receive fair pay and working conditions tailored to their specific roles.
In this article, we provide a concise summary of the key aspects of the Fast Food Industry Award, covering topics such as coverage, employment types, rostering practices, pay rates, allowances, superannuation, and leave entitlements. Understanding these elements is imperative for complying with legal requirements and promoting fair employment practices within your business.
For those who need more detailed insights, links to comprehensive articles on each topic are included throughout this summary.
Note: The information in this article is accurate as of 16/08/2024. Award conditions and rates may change, so always refer to the latest version of the Fast Food Industry Award 2020 for the most up-to-date information.
Fast Food Industry Award coverage
The Fast Food Award covers employees working in fast food outlets, such as kitchen staff, counter attendants, delivery personnel, and food preparers. It also applies to on-hire workers and trainees in the fast food sector. However, the award doesn’t cover employees working in traditional restaurants, cafes, or bars (covered by other awards), senior managers, high-income earners, or those under enterprise agreements or state public sector awards.
Practical example: Alex works full-time as kitchen staff at a fast food outlet, but sometimes assists at the front counter during peak hours. Recently, he was temporarily assigned to another location by a staffing agency. The Fast Food Industry Award covers all these roles, ensuring Alex is compensated fairly, whether he's preparing food, serving customers, or working at a different location.
Employment types under the Fast Food Industry Award
The Fast Food Award defines three key employment types: full-time, part-time, and casual.
Full-time employees have ongoing contracts with consistent weekly hours, offering job stability. Part-time employees work fewer hours, with a predetermined schedule outlined in their contracts, ensuring proportional benefits. Casual employees are engaged on an as-needed basis, receiving a higher hourly rate to compensate for the lack of regular hours and job security. The award also covers on-hire workers and trainees or apprentices, whose employment terms align with their specific contracts.
Fast Food Industry Award ordinary hours
The award provides that full-time employees have a standard 38 hour workweek, which can be averaged over a specified period. Part-time employees follow a regular schedule agreed upon at the time of engagement. Casual employees must be engaged for a minimum of three hours per shift, with flexibility in the total hours worked each week. Shift workers may have their hours averaged over a longer period, covering various times, including weekends and public holidays.
Rostering under the Fast Food Industry Award
The Fast Food Award outlines essential guidelines for roster management, breaks, and flexible working arrangements to ensure fairness and compliance. Full-time and part-time employees must have their regular hours agreed upon in writing before starting, with breaks scheduled according to established work patterns. While the award doesn’t mandate specific notice periods for roster changes, any agreed variation to the work schedule must be documented in writing.
Regarding breaks, employees working five or more hours are entitled to a 30-minute to 60-minute unpaid meal break, with additional breaks for shifts of nine or more hours. Paid 10-minute rest breaks are provided for shifts of four hours or more, with the number of breaks increasing based on the length of the shift. Meal breaks don’t count as time worked, while rest breaks do. Rest and meal breaks can’t be combined and must be scheduled to provide meaningful relief during the shift.
The award also allows for roster flexibility and permits employees to request flexible working arrangements, which employers must consider in line with the National Employment Standards (NES).
Learn more about Fast Food Award employment types, ordinary hours, and rostering
Fast Food Industry Award pay rates
Ensuring fair compensation is a critical aspect of the Fast Food Award. This award sets minimum wage rates for various roles within the fast food sector, including adult employees, juniors, and those on traineeships. For example, as of July 2024, a Level 2 adult employee earns $26.18 per hour. Casual employees receive an additional 25% loading on top of their hourly rate to account for the lack of benefits like paid leave.
Employers are required to pay employees for all hours worked, either weekly or fortnightly, with payslips detailing allowances and deductions. In the event of termination, all outstanding wages must be paid within seven days.
See full list of Fast Food Industry Award pay rates
Allowances under the Fast Food Industry Award
The Fast Food Award includes various allowances to ensure fair compensation for specific duties and work-related expenses. For example, employees working in cold environments receive up to $0.86 per hour, and those working overtime without notice are entitled to a meal allowance of $15.23. Other allowances cover special clothing costs, motor vehicle use, and travel expenses for work. These are just some of the allowances provided under the award.
Fast Food Industry Award superannuation
Superannuation is an essential part of employee compensation under the Fast Food Award. Employers must contribute 11.5% of an employee's ordinary time earnings (OTE) for employees over 18 years old, or those under 18 working more than 30 hours a week. Employees can choose their super fund; if no choice is made, employers must check for a stapled fund or use an approved fund like REST or Hostplus.
Voluntary contributions can be made by employees with written authorisation, and contributions must be paid within 28 days after the end of the month. Contributions continue during paid leave and for up to 52 weeks during work-related injury or illness if the employee remains employed. Accurate OTE calculations are essential to ensure correct super payments and avoid penalties.
Fast Food Industry Award overtime and penalty rates
Overtime and penalty rates under the Fast Food Award are designed to ensure that employees receive fair compensation for working beyond their regular hours or during less desirable times. These rates acknowledge the extra effort and disruption involved in working overtime or during non-standard hours.
Overtime rates
Overtime is paid when employees work more than 38 hours a week, exceed 11 hours in a day, or work outside the standard spread of hours. For example, full-time employees working more than 38 hours a week receive 150% of their regular hourly rate for the first two hours of overtime. If they continue working beyond that, the rate increases to 200%.
Employees can opt to take time off in lieu of overtime pay, with the agreement that the time off must be used within six months. Additionally, if an employee doesn’t receive a ten-hour rest period following overtime, the employer must compensate them at double their regular rate until the required break is provided.
Practical example: Sarah, a full-time employee, works an additional three hours on Tuesday, bringing her total weekly hours to 41. For the first two hours, she earns 150% of her regular $25/hour rate, totaling $75. For the third hour, she earns 200%, adding another $50, making her total overtime pay $125.
Penalty rates
Penalty rates apply to work performed outside of ordinary hours that don’t qualify as overtime under the Fast Food Award. For instance, casual employees working on a Saturday are entitled to 150% of their regular hourly rate. On Sundays, the rate increases, with some levels earning up to 150% for part-time and full-time employees, ensuring that employees are compensated for the inconvenience of working during these times.
Practical example: Jack, a casual employee, works five hours on a Saturday. Since Saturday work is paid at 150% of his regular $25/hour rate, he earns $187.50 for those five hours.
Learn more about Fast Food Industry Award overtime and penalty rates
Fast Food Industry Award leave entitlements and public holidays
The Fast Food Award provides comprehensive leave entitlements and public holiday provisions, ensuring that employees are supported in both their work and personal lives. These entitlements, aligned with the NES, include annual leave, various forms of supportive leave, and specific rights related to public holidays.
Annual leave
Full-time employees are entitled to four weeks of paid annual leave per year, while part-time employees accrue leave on a pro-rata basis. During annual leave, employees receive a 17.5% leave loading or the applicable weekend penalty rates, whichever is higher. Employers can require employees to take paid leave during temporary shutdowns with one month's notice. If an employee has more than eight weeks of accrued leave, the employer and employee should work together to reduce the balance. If no agreement is reached, the employer may direct the employee to take leave, ensuring at least six weeks of leave remains.
Other types of leave
In addition to annual leave, the Fast Food Award includes several other leave entitlements. Full-time employees receive 10 days of paid personal/carer’s leave annually, with part-time employees accruing this leave on a pro-rata basis. Casual employees are entitled to up to 48 hours of unpaid carer’s leave. Employees are also entitled to two days of compassionate leave per occasion, up to 12 months of unpaid parental leave (with the option to request an additional 12 months), unpaid community service leave, and 10 days of unpaid family and domestic violence leave per year.
Public holidays
Employees (excluding casuals) are entitled to a paid day off on public holidays recognised under the NES, such as New Year’s Day, Australia Day, and Christmas Day. Employers can request employees to work on a public holiday if the request is reasonable, but employees have the right to refuse if the request is unreasonable. Employers and employees can also agree to substitute another day for a public holiday, and any work performed on a public holiday must be compensated at the specified penalty rates.
Learn more about Fast Food Industry Award leave entitlements
Key considerations for the Fast Food Industry Award
The Fast Food Industry Award covers a broad range of roles within the fast food sector, making it essential for employers to fully understand and comply with its specific provisions. Here are some key considerations:
- Coverage limitations: The Fast Food Award specifically excludes employees working in traditional restaurants, cafes, or bars, even if their job duties closely resemble those in fast food outlets.
Why it matters: Employers may mistakenly apply the Fast Food Award to these workers, leading to compliance issues. Misclassifying employees by applying the wrong award can result in underpayment or overpayment, legal disputes, and back-payment obligations.
- Late night loading: Employers may need to pay additional loading for employees working late-night hours, separate from overtime and penalty rates. This loading compensates for the inconvenience of working during unsocial hours.
Why it matters: Employers might be surprised by this additional cost, which can lead to unexpected payroll increases or potential non-compliance. Failing to account for these costs accurately can result in financial liabilities and disrupt budgeting.
- Public holiday staffing: Pay rates significantly increase for employees, including casuals, who work on public holidays.
Why it matters: Staffing for public holidays requires careful planning because of the higher wages involved. Without proper budgeting for these increased costs, employers risk financial strain and potential non-compliance, which could damage employee relations and lead to legal consequences.
Simplify Fast Food Award compliance with Rippling
Staying compliant with the Fast Food Award can be demanding because of its specific pay structures and detailed leave entitlements. Rippling’s integrated platform helps streamline these processes, ensuring your business meets the award’s requirements while treating employees fairly in all areas. Key features include:
Comprehensive coverage and compliance tools
Rippling’s platform offers custom-built alerts to help keep you updated and on top of award compliance. With detailed reporting, audit support, and customisable templates, you can ensure that your business remains compliant with all facets of the Fast Food Award.
Streamlined time, attendance, 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.
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.
