Fast Food Industry Award coverage: comprehensive guide

The Fast Food Industry Award 2020 is specifically designed to cover employees engaged in various roles within the fast food sector. This award ensures that these employees receive fair wages and conditions, addressing the unique needs and challenges within fast food operations. However, like any award, it includes specific provisions and exclusions that employers must understand to ensure compliance and proper application.

Understanding the nuances of the Fast Food Industry Award is crucial for both employers and employees to ensure fair treatment and adherence to employment standards within the fast food industry.

Who’s covered under the Fast Food Award?

The Fast Food Industry Award 2020 is comprehensive, encompassing a wide array of roles within Australia's fast-paced fast food sector. Here’s a closer look at who the award covers:

Employees in the fast food industry

This includes those involved in preparing and selling meals and beverages for consumption away from the premises, including food courts and shopping centres. Examples include:

• Kitchen staff: Prepare quick meals.
• Counter attendants: Serve customers and process orders.
• Delivery personnel: Deliver meals to customers' homes.
• Food preparers: Prepare ingredients for efficient service.

On-hire employees

Dynamic workers hired through agencies to work temporarily within the fast food sector. Examples include:

• Contract chefs: Employed by staffing agencies and placed temporarily in fast food kitchens during peak times.
• Temporary service crew: Move between different fast food outlets based on demand.

Trainees employed by group training employers

Trainees gain real-world experience in the fast food industry, supported by structured training programs. Examples include:

• Culinary trainees: Gaining hands-on experience while pursuing culinary qualifications.
• Service management trainees: Aspiring managers learning the ropes of fast food service management.

Who isn’t covered under the Fast Food Award?

Not all roles within the food service industry fall under the Fast Food Industry Award. Specifically, the award does not cover:

• Employees covered by other industry-specific awards: Businesses like traditional sit-down restaurants, cafes, and bars, which are typically covered by the Restaurant Industry Award or the Hospitality Industry (General) Award.
• Employees excluded by the Fair Work Act from award coverage: Senior management positions or high-income employees may not be covered because of exclusions based on earnings or specific job roles.
• Employees covered by a Modern Enterprise Bargaining Agreement (EBA): Workers in companies with negotiated specific employment terms through an EBA aren’t covered, as these agreements supersede the Fast Food Industry Award.
• Employees under a state-reference public sector modern award or state-reference public sector transitional award: Employees in state-run facilities, such as government-funded schools or hospitals, may be covered by public sector-specific awards.
• Employers in relation to employees mentioned in points above: For example, a public health department employing staff under a specific public sector health workers award.
• Employees in sectors such as hospitality or general retail industries: Employees in these areas are usually covered by the General Retail Industry Award or the Hospitality Industry (General) Award.

Fast Food Industry Award coverage: Practical example

Kassie works at a fish and chip shop. Her job includes:

• Food preparation (10% general, 90% essential to delivering core services): Preparing ingredients and assembling food items for customer orders.
• Customer order handling (20% general, 80% essential to delivering core services): Taking orders from customers, both in-person and via phone or online.
• Kitchen cleanliness maintenance (30% general, 70% essential to delivering core services): Ensuring the kitchen area is clean and meets health standards.

Analysis

Kassie’s role is predominantly essential to delivering core services (80%), with a smaller portion of general tasks (20%), making her eligible for coverage under the Fast Food Industry Award.

Steps to determine coverage

Follow the steps below to help you determine appropriate award coverage for an employee:

1. Identify responsibilities: List key tasks and their nature (general vs. essential to delivering core services).
2. Compare with awards: Review definitions and classifications in the Fast Food Industry Award and other relevant awards.
3. Predominant Function Test: Focus on primary tasks. If core service tasks dominate, the Fast Food Industry Award is likely appropriate.
4. Check exclusions: Review exclusions in the Fast Food Industry Award and relevant industry awards.
5. Review other employment agreements: Check enterprise agreements or contracts for award applicability.
6. Consult experts: Consult industrial relations or legal experts if unsure about coverage.
7. Maintain thorough records: Document analysis, awards considered, advice received, and the rationale behind the final decision.

Distinctions within Fast Food Industry Award coverage

The Fast Food Industry Award contains several nuances that often catch employers and employees by surprise. Here are some key points to consider:

• Definition of fast food operations: The award's definition includes traditional fast food outlets as well as businesses selling meals and beverages primarily for off-premises consumption. This includes certain kiosks, mobile food vendors, and operations within food courts and shopping centres.
  Impact: Employers might overlook these outlets, risking compliance issues.
• Coverage of on-hire employees: The award covers on-hire employees working in fast food businesses, entitling them to the same conditions as those employed directly.
  Impact: Overlooking this can lead to unequal treatment and legal non-compliance.
• Trainee arrangements: The award covers trainees employed by group training employers and hosted by fast food businesses, with specific entitlements and protections.
  Impact: Failing to implement correct provisions can result in legal repercussions.
• Exclusions based on service type: Employees in coffee shops, cafes, bars, and restaurants providing primarily sit-down service are excluded. The distinction between fast food operations and traditional dining services, especially in mixed-use environments like food courts, requires careful consideration.
  Impact: Misclassifying employees could result in incorrect award applications.
• Overlap with other awards: Employers must delineate between the Fast Food Industry Award and other awards, such as the Restaurant Industry Award or the General Retail Industry Award, to determine correct coverage.
  Impact: Misclassification can lead to potential legal and financial penalties.

Simplifying Fast Food Award coverage compliance with Rippling

Navigating the intricacies of award coverage requires careful management to ensure compliance and fair treatment of employees. Rippling’s unified platform provides comprehensive tools to help your business stay on top of award coverage requirements, with ease. Key features include:

• Automated employee classification: Automatically classify employees according to the appropriate awards.
• Real-time compliance alerts: Stay updated with any changes in award coverage.
• Detailed reporting: Generate reports to ensure compliance and maintain accurate records.
• Custom templates: Use pre-built and customisable templates for various awards.
• Audit support: Access historical data and audit trails to support compliance audits.

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.