An overview of the General Retail Industry Award

The General Retail Industry Award 2020 is a key framework governing employment conditions within the retail sector. It ensures that employees in a wide range of retail roles, from sales assistants to store managers, receive fair wages and working conditions.

In this article, you'll find a summarised overview of the essential elements of the General Retail Industry Award, including coverage, employment types, rostering guidelines, pay rates, allowances, superannuation, and leave entitlements. Understanding these provisions is crucial for complying with legal requirements and fostering equitable employment practices across your retail business.

For more detailed information, you’ll find links throughout this article directing you to in-depth articles on each topic.

Note: The information provided in this article is accurate as of 12/08/2024. As award conditions and rates are subject to change, please refer to the latest version of the General Retail Industry Award 2020 for the most current information.

General Retail Industry Award coverage

The Retail Industry Award applies to a broad spectrum of roles across various retail environments. Here’s an overview of the award's coverage:

Who's covered

• Retail employees: Includes roles such as sales associates, stock handlers, customer service representatives, and checkout operators, all integral to the retail industry.
• On-hire retail staff: Covers on-hire or agency employees like contract sales staff, temporary inventory specialists, and agency customer service assistants brought in to meet demand.
• Apprentices and trainees: Applies to apprentices and trainees in structured training programs within the retail sector, such as retail management trainees and customer relations trainees.

Who isn't covered

• Other award roles: Retail roles better suited to other awards, like employees in boutique design studios covered by the Graphic Arts Award.
• High-income and senior management: Excludes senior managers and high-income earners as defined by the Fair Work Act.
• Enterprise agreement employees: Retail staff under specific Modern Enterprise Agreements (EBAs), such as those at large retail chains.
• Public sector retail employees: Retail employees governed by state-specific public sector awards.
• Specialised retail roles: Roles like pharmacy assistants and automotive retail workers covered by industry-specific awards.

Practical example: Mark, a sales assistant at a boutique fashion store with an in-store coffee shop, spends 50% of his time on retail sales, 20% on inventory management, and 30% on coffee shop tasks. Since most of his work is retail-specific, Mark’s covered by the General Retail Industry Award, which ensures he receives fair wages and working conditions.

Learn more about General Retail Industry Award coverage

Employment types under the General Retail Industry Award

The Retail Award covers three main employment types:

• Full-time: Employees with ongoing contracts who work a consistent number of hours each week, providing job stability.
• Part-time: Employees who work fewer hours than full-time, with set hours and benefits that are proportional to their work schedule.
• Casual: Employees hired on an as-needed basis, without guaranteed hours, earning a higher hourly rate to account for the lack of regular work.

This structure also accommodates on-hire employees and trainees/apprentices based on their specific work arrangements.

General Retail Industry Award ordinary hours

The Retail Industry Award sets clear guidelines for managing ordinary hours to ensure fairness across employment types:

• Full-time employees work 38 hours per week, with scheduling evaluated annually.
• Part-time employees work fewer than 38 hours, with a minimum three-hour shift, based on a pre-agreed schedule.
• Casual employees can work up to 38 hours per week, with a minimum three-hour shift (or 1.5 hours for certain students).

The Retail Award also specifies that employees can work their ordinary hours between 7:00 AM and 9:00 PM on weekdays, with different span times on weekends, and a maximum of nine hours per day, except one day per week, where 11 hours may be allowed.

Rostering under the General Retail Industry Award

The Retail Industry Award sets clear expectations for managing rosters and breaks to ensure fairness and compliance. Employers must provide employees with regular and predictable work hours, with any changes to rosters requiring at least seven days' notice. Flexibility is built into the award, allowing adjustments to work arrangements by mutual agreement between employers and employees.

For example, full-time staff can be rostered to work an average of 38 hours per week, with flexible arrangements such as working 76 hours over two weeks or 152 hours over four weeks. This flexibility helps balance operational needs with employee preferences.

Employees are entitled to breaks that align with the length of their shifts. If an employee works more than five hours, they must receive a 30-60 minute unpaid meal break. Additionally, employees working shifts longer than seven hours are entitled to two 10-minute paid rest breaks. The award also mandates a minimum 12-hour rest period between shifts, ensuring employees have adequate time to rest before their next workday.

Learn more about General Retail Industry Award employment types, ordinary hours, and rostering

General Retail Industry Award pay rates

The Retail Award ensures fair compensation for various roles within the retail sector. The award specifies minimum wage rates for different employee classifications, including adults, juniors, and apprentices. For instance, as of July 2024, a Level 4 adult employee earns $26.18 per hour. Casual employees receive an additional 25% loading on top of the minimum hourly rate.

Employers must pay wages for all hours worked, at least on a weekly or fortnightly basis, using cash, cheque, or electronic funds transfer. Payslips must clearly itemise any allowances and deductions. Upon termination of employment, all outstanding wages must be paid within seven days. This includes wages for completed or partially completed pay periods and any additional amounts due under the award and the National Employment Standards (NES).

See the full list of General Retail Industry Award pay rates

Allowances under the General Retail Industry Award

The General Retail Industry Award ensures that employees receive fair compensation through various allowances for specific duties and work-related expenses. For example, employees with a current first aid qualification who are appointed to perform first aid duties are entitled to a first aid allowance of $12.94 per week, in addition to their regular pay.

Other important allowances under this award include meal allowances for those required to work overtime, vehicle allowances for employees using their personal vehicles for work, and cold work allowances for those working in cold environments, such as stocking refrigerated storage.

See the full list of General Retail Industry Award allowances

General Retail Industry Award superannuation

Under the Retail Award, employers must contribute 11.5% of an employee's ordinary time earnings (OTE) to their superannuation. This applies to all employees over 18, and those under 18 working more than 30 hours a week, regardless of employment type.

Employees can nominate their preferred super fund. If they don't, employers should check with the ATO for a stapled fund; absent that, contributions go to an approved fund like The Retail Employees Superannuation Trust (REST). Employers must make accurate and timely contributions to avoid penalties. Additionally, employees can opt to make extra post-tax contributions, which can be adjusted with three months' written notice.

Super contributions continue during paid leave and up to 52 weeks if an employee is on workers' compensation or receiving regular employer payments because of work-related injury or illness. 

General Retail Industry Award overtime and penalty rates

The Retail Award provides specific overtime and penalty rates to ensure fair compensation for employees who work beyond their regular hours or during unsociable times. These rates reflect the additional demands placed on employees, ensuring they're appropriately rewarded for their time and effort.

Overtime rates

Overtime is required under the General Retail Industry Award for hours worked beyond the typical 38-hour week or outside the designated ordinary hours. For example, an employee working overtime on a weekday is entitled to 150% of their regular hourly rate for the first three hours and 200% of their regular rate for any additional hours.

Practical example: Jake, a full-time retail worker, works an additional four hours on a Friday. With a regular hourly rate of $22, he earns 150% of that rate for the first three hours, totaling $99. For the fourth hour, he earns 200% of his regular rate, adding another $44. His total overtime pay for the four hours is $143.

Employees may also opt to take time off instead of overtime pay, provided this is agreed upon in writing. This time off must be used within six months, or the overtime must be paid out.

Penalty rates

Penalty rates apply to work performed outside of standard hours that aren’t classified as overtime. For example, work done on a Saturday by a casual employee is typically paid at 150% of their regular hourly rate.

Practical example: Lucy, a casual retail assistant, works six hours on a Saturday. Her regular hourly rate is $27, which includes casual loading. She earns 150% of that rate for the Saturday work, resulting in $243 for the six hours worked.

Learn more about General Retail Industry Award overtime and penalty rates

General Retail Industry Award leave entitlements and public holidays

The Retail Award provides a comprehensive set of leave entitlements and public holiday provisions, ensuring employees are supported both in their professional and personal lives. These entitlements, in line with the Fair Work Ombudsman and NES, cover annual leave, various forms of supportive leave, and specific rights concerning public holidays.

Annual leave

Full-time employees are entitled to four weeks of paid annual leave each year, while part-time employees accrue leave on a pro-rata basis. During annual leave, employees also receive a 17.5% leave loading on their wages. If an employee accrues more than eight weeks of leave, it’s considered excessive, and they should work with their employer to reduce this balance. If no agreement is reached, the employer can direct the employee to take leave, provided the employee’s remaining accrued entitlement is at least six weeks.

Other types of leave

Besides annual leave, the General Retail Award offers several other leave entitlements in line with the NES. Full-time employees get 10 days of paid personal/carer’s leave annually, with part-timers accruing it proportionally.

Employees are entitled to two days of compassionate leave per qualifying event, up to 12 months of unpaid parental leave (with a possible extension), and unpaid community service leave for activities like jury duty. Additionally, the award provides 10 days of unpaid leave annually for family and domestic violence situations.

Public holidays

Employees (excluding casuals) are entitled to a paid day off on recognised public holidays. Employers can request employees to work on public holidays if the request is reasonable, but employees can refuse based on reasonable grounds. Employers and employees can agree to substitute a public holiday for another day. Penalty rates apply for work on public holidays, and if a holiday falls on a weekend, a substitute day, usually the following Monday, is often declared.

Learn more about General Retail Industry Award leave entitlements

Shiftwork essentials under the General Retail Industry Award

Shiftwork under the Retail Industry Award has specific rules to ensure fair compensation and work conditions. Shiftwork typically involves shifts starting after 6:00 PM and ending before 5:00 AM the next day.

Key pay rates

• Weekdays: 130% of the minimum hourly rate for full-time/part-time shift workers.
• Saturdays: 150% of the minimum hourly rate.
• Sundays: 175% of the minimum hourly rate.
• Public Holidays: 225% of the minimum hourly rate.

Additional considerations

• If a shift worker works on a rostered day off, they're paid at a higher overtime rate.
• Shift workers working without a 10-hour rest between shifts must be paid at double time until they receive the proper rest.

These rules ensure shift workers are compensated fairly for the demands of irregular hours.

Learn more about shiftwork under the General Retail Industry Award

Key considerations for the General Retail Industry Award

The General Retail Industry Award covers a wide range of roles within the retail sector, requiring employers to fully understand and comply with its specific provisions. Here are some crucial nuances to consider:

• Rostering constraints for part-time employees: One surprising element of the Retail Award is the strict requirements around rostering part-time employees. Any changes to a part-time employee's regular hours must be agreed upon in writing before the start of the shift. This applies even if the change is minor, such as adjusting start or finish times by just a few minutes.
  
  Why it matters: Employers may overlook the need for written agreements when adjusting part-time employees' hours, assuming verbal agreements or informal changes are sufficient. This can lead to non-compliance issues, resulting in potential disputes or claims for back pay. Ensuring that all roster changes for part-time employees are properly documented and agreed upon in writing is essential to avoid these pitfalls.
• Complex overtime provisions: Overtime rates under the General Retail Industry Award aren't one-size-fits-all; they vary depending on when the overtime is worked. For example, weekday overtime is paid at 150% of the regular rate for the first three hours, increasing to 200% thereafter. On weekends, the rates are higher from the start.
  
  Why it matters: Mismanaging these overtime calculations can lead to significant payroll discrepancies. Incorrectly applying weekday versus weekend overtime rates can result in either overpayments or underpayments, creating financial liabilities, and risking employee dissatisfaction. Accurate calculation and application of these rates are essential to maintain compliance and financial stability.

• Penalty rates for irregular hours: Retail employees are entitled to penalty rates for working during evenings, weekends, and public holidays. For example, Sunday work is paid at 150% of the regular rate, and public holidays can attract rates up to 225%. The irregular hours typical in retail make it challenging to stay on top of these varying rates.
  
  Why it matters: Failing to correctly apply penalty rates can substantially increase payroll costs and lead to non-compliance. Miscalculating these rates can create financial liabilities and expose the business to potential legal action. Properly budgeting for and accurately applying these penalty rates is essential to avoid financial strain and ensure legal compliance.

Simplify General Retail Industry Award compliance with Rippling

Managing Retail Award compliance can be challenging because of its broad coverage, detailed pay structures, and complex leave entitlements. Rippling’s unified platform simplifies this process, helping your business stay compliant and ensuring fair treatment of employees across all aspects of the award. 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 General Retail 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.