Fast Food Industry Award pay rates, allowances, and overtime
The Fast Food Industry Award 2020 governs employment conditions for employees in the fast food sector, ensuring they receive appropriate wages and working conditions. This award applies to a variety of roles within the fast food industry, establishing essential standards for these workers.
This article discusses essential components of the Fast Food Industry Award, including minimum pay rates, wage payments, allowances, superannuation, overtime, penalty rates, leave entitlements, and public holidays. Understanding these aspects is vital for maintaining compliance and ensuring fair treatment in the workplace.
Note: The information provided in this article is accurate as of 03/07/2024. As award conditions and rates are subject to change, please refer to the latest version of the Fast Food Industry Award 2020 for the most current information.
Fast Food Industry Award minimum pay rates
Employers must grasp the minimum pay rates to ensure fair compensation. The table below provides a detailed summary of the minimum rates under the Fast Food Award, encompassing various roles within the fast food industry.
It’s important to note that full-time employees are entitled to the minimum weekly rate. For part-time employees, the stipulated minimum hourly rate is applicable. Furthermore, employers must pay casual employees an additional 25% loading for each hour worked on top of the standard minimum hourly rate listed below:
Category
Description
Rates/Details
Example
Adult employees
Employees aged 21
and over
Level 1: $974.80/week ($25.65/hour)
Level 2: $1032.30/week ($27.17/hour) =
Level 3—in charge of one or no person: $1048.20/week ($27.58/hour)
Level 3—in charge of 2 or more people: $1061.10/week ($27.92/hour)
A 25-year-old kitchen hand classified as Level 2 will be paid $995.00 per week or $26.18 per hour.
Junior employees
Employees aged under 21
Under 16: 40% of adult employee rate
16 years: 50% of adult employee rate
17 years: 60% of adult employee rate
18 years: 70% of adult employee rate
19 years: 80% of adult employee rate
20 years: 90% of adult employee rate
An 18-year-old kitchen hand classified as Level 1 will be paid $682.36 per week or $17.96 per hour (70% of $974.80 per week or $25.65 per hour).
Supported wage system
Employees with a disability eligible for a supported wage
Minimum amount payable is determined by assessed capacity and relevant award pay rates
An employee with a disability assessed at 70% capacity will be paid 70% of the relevant minimum rate for their classification.
National training wage
Employees undertaking a traineeship
Rates depend on training package, qualification level, and year of training
A first-year trainee in a Certificate III program will be paid according to the specified rates for that training package and year.
Fast Food Award payment of wages
Ensuring timely and accurate payment of wages is a fundamental responsibility of employers under the Fast Food Industry Award. Below are the key provisions related to the payment of wages:
General payment of wages
- Pay records and payslips: The Fair Work Regulations 2009 set out the requirements for pay records and the content of payslips, including the requirement to separately identify any allowance paid.
- Pay periods: Employers may determine the pay period as either weekly or fortnightly. Wages must be paid for a pay period according to the actual hours worked by the employee in the period, or they may be averaged over a fortnight.
Payment on termination of employment
- Timing: Employers must pay employees their outstanding wages within 7 days after their employment ends. This includes:
- Wages for completed or partially completed pay periods up to the termination date.
- Any other amounts due under the award and the National Employment Standards (NES).
- Deductions and further orders: The Fair Work Commission can issue orders to delay payments, such as redundancy pay, under certain conditions.
Fast Food Industry Award allowances
Employers must provide employees with the allowances specified in the Fast Food Industry Award. The table below presents a detailed overview of the various allowances, their amounts, and the conditions under which they’re paid:
Allowance type
Description
Amount/Details
Broken Hill allowance
For employees at a workplace within the County of Yancowinna in New South Wales (Broken Hill)
$44.19 per week
Cold work allowance
For employees entering cold chambers or stocking refrigerated storages
$0.35 per hour; $0.89 per hour if the temperature is below 0°C
Meal allowance
For employees required to work more than one hour of overtime without 24 hours' notice
$16.23 for the first meal; an additional $14.66 if overtime exceeds 4 hours
Special clothing allowance
For employees required to wear special clothing such as uniforms or protective clothing
Supply, pay for, or reimburse costs of special clothing; $6.25 per week for laundering (full-time); $1.25 per shift (part-time/casual)
Travelling time reimbursement
For employees required to work at a place other than their usual place of work
Payment for extra travel time and reimbursement of additional fares incurred
Transport of employee reimbursement
For employees starting/finishing work after 10.00 PM or before 7.00 AM without available regular transport
Reimbursement for the cost of a commercial passenger vehicle to/from residence
Motor vehicle allowance
For employees requested to use their own vehicle for work duties
$0.52 per kilometre for delivering products; $0.98 per kilometre otherwise
Excess travelling costs
For employees required to move temporarily between branches or shops
Reimbursement of additional travel costs
Fast Food Award superannuation
Under the Fast Food Industry Award 2020, here are the key points related to superannuation:
Superannuation legislation
- Governed by the NES and relevant superannuation legislation.
- Employees generally can choose their own superannuation fund.
Employer contributions
- Employers must contribute 11.5% of an employee's ordinary time earnings (OTE) to avoid the superannuation guarantee charge.
- Contributions are required for employees over 18 years old and for those under 18 working more than 30 hours a week.
Fund selection
- If no fund is chosen by the employee, employers must check with the ATO for a stapled fund.
- If no stapled fund exists, contributions can be made to approved funds like REST, Sunsuper, Hostplus, or any eligible choice fund used prior to 12 September 2008.
Voluntary contributions
- Employees can make additional post-tax contributions with written authorisation.
- Contribution amounts can be adjusted with three months' written notice.
- Employers must pay these contributions within 28 days after the end of the month in which the deduction was made.
Contributions during absence
- Contributions continue during paid leave.
- For work-related injury or illness, contributions continue for up to 52 weeks if the employee receives workers' compensation or regular payments and remains employed.
Clarifications
- Accurate OTE calculations are essential for correct super payments.
- Employees earning less than $450 before tax in a month from an employer are generally not entitled to super contributions.
Fast Food Industry Award overtime
Overtime and penalty rates ensure fair compensation for employees working beyond their regular hours. The Fast Food Award outlines specific conditions and rates for overtime. Different requirements apply to full-time, part-time, and casual employees.
Employers must pay overtime for:
- Hours exceeding 38 ordinary hours per week or averaged over a 4-week period.
- More than 11 ordinary hours in one day.
- Hours worked outside the spread of ordinary hours.
- Overtime on a rostered day off that isn’t substituted or banked.
- For part-time employees, hours in excess of the agreed number of ordinary hours.
Overtime rates
Hours of overtime worked per day
Overtime rate (full-time and part-time employees)
Overtime rate (casual employees)
Monday to Saturday—first 2 hours
150% of minimum hourly rate
175% of minimum hourly rate
Monday to Saturday—after 2 hours
200% of minimum hourly rate
225% of minimum hourly rate
Sunday—all day
200% of minimum hourly rate
225% of minimum hourly rate
Public holiday—all day
Can realize a profit or incur financial losses from their work
Does not bear an economic risk
Exclusivity of service
250% of minimum hourly rate
275% of minimum hourly rate
Example
Sarah is a full-time fast food worker earning a standard hourly rate of $30 for a 38-hour week. In a particular week, she works an additional six hours: two hours of overtime on Tuesday and four hours of overtime on Saturday.
- First two hours of overtime on Tuesday: 2 hours x $30 x 1.5 = $90
- Next four hours of overtime on Saturday: 4 hours x $30 x 2 = $240
- Total overtime pay: $90 + $240 = $330
Time off instead of payment for overtime
The Fast Food Industry Award 2020 allows for flexibility by permitting time off instead of payment for overtime, subject to mutual agreement between the employer and employee. This can be arranged as follows:
- Time off in lieu of payment: Employees can agree to take equivalent time off for the overtime worked instead of receiving direct payment.
- Agreement requirements: Any such agreement must outline the overtime hours worked, the arrangement for time off instead of payment, and the conditions for payment if requested by the employee.
- Timeframe for taking time off: The time off must be taken within six months of the overtime worked, at a time agreed upon by both the employee and employer.
- Record-keeping: Employers must maintain a record of any agreements for time off instead of payment for overtime.
Additional considerations
- Rest period after overtime: Employees who work overtime must have a minimum 10-hour break between the end of overtime and the start of their next shift. If this break is not provided, the employee must be paid at double time until such a break is provided.
- Overtime for casual employees: Casual employees are entitled to the specified overtime rates in addition to their casual loading.
Fast Food Award penalty rates
Penalty rates apply to work performed outside of ordinary hours that aren’t classified as overtime. These rates ensure that employees are fairly compensated for the additional demands and inconveniences of working outside standard hours. Note that different requirements apply to shiftworkers.
Full-time and part-time employees
Casual employees
Example
Monday to Friday (10:00 PM to midnight)
110% of the minimum hourly rate
135% of the minimum hourly rate
John is a part-time employee with a minimum hourly rate of $20. He works from 10:00 PM to midnight on a Friday. His pay is: 2 hours x $20 x 1.1 = $44.
Monday to Friday (midnight to 6:00 AM)
115% of the minimum hourly rate
140% of the minimum hourly rate
Emma is a casual employee with a minimum hourly rate of $25. She works from midnight to 2:00 AM on a Wednesday. Her pay is: 2 hours x $25 x 1.4 = $70.
Saturday (all day)
125% of the minimum hourly rate
150% of the minimum hourly rate
Jack is a casual employee with a minimum hourly rate of $30. He works 4 hours on a Saturday. His pay is: 4 hours x $30 x 1.5 = $180.
Sunday (Level 1 employees)
125% of the minimum hourly rate
150% of the minimum hourly rate
Mark is a full-time Level 1 employee with a minimum hourly rate of $22. He works 5 hours on a Sunday. His pay is: 5 hours x $22 x 1.25 = $137.50.
Sunday (Level 2 and 3 employees)
150% of the minimum hourly rate
175% of the minimum hourly rate
Lisa is a part-time Level 2 employee with a minimum hourly rate of $28. She works 5 hours on a Sunday. Her pay is: 5 hours x $28 x 1.5 = $210.
Sunday (Level 1 employees)
125% of the minimum hourly rate
150% of the minimum hourly rate
Mark is a full-time Level 1 employee with a minimum hourly rate of $22. He works 5 hours on a Sunday. His pay is: 5 hours x $22 x 1.25 = $137.50.
Fast Food Industry Award leave and public holidays
Leave entitlements form a vital aspect of employee rights under the Fast Food Industry Award 2020. This section details the different types of leave accessible to employees, such as annual leave, personal/carer's leave, compassionate leave, parental leave, and family and domestic violence leave.
Annual leave
Details
Example
Annual leave entitlement
Full-time employees receive four weeks of annual leave per year of service.
Part-time employees accumulate annual leave on a pro-rata basis.
A full-time worker with a 38-hour week gets four weeks of annual leave annually.
A part-time worker with a 19 hour week earns four weeks of leave paid at 19 hours per week.
Annual leave loading
During annual leave, employees receive a 17.5% loading on their regular pay or the applicable weekend penalty rates, whichever is higher.
James takes two weeks of leave. His regular weekly pay is $1000. He receives an additional 17.5% loading: $1000 x 2 weeks x 17.5% = $350.
Shutdown period
Employers may require employees to take paid annual leave during temporary shutdowns with one month's notice and written direction.
A business plans a shutdown for the first week of February. Employees are notified on January 1st and must take paid annual leave during this period or unpaid leave if insufficient leave is available.
Leave in advance
Employees and employers can agree in writing for leave to be taken before it’s accrued. The agreement must specify the amount of leave and the start date and be signed by both parties.
Jacinta and her employer agree she will take one week of leave in advance, starting on August 15th. Both sign the agreement.
Cashing out annual leave
Employees may cash out annual leave if both parties agree in writing. The employee must retain at least four weeks of accrued leave, and a maximum of two weeks can be cashed out in a 12-month period. The agreement must detail the amount and payment.
Adam has six weeks of accrued leave and agrees with his employer to cash out two weeks. They sign an agreement detailing the payment and leaving Adam with a balance of four weeks.
Excessive leave accruals
Accrued leave exceeding eight weeks is considered excessive. Employers and employees should discuss and agree on reducing this leave.
If no agreement is reached, employers can direct leave to be taken, or employees can request to take leave.
Jacinta and her employer agree she will take one week of leave in advance, starting on August 15th. Both sign the agreement.
Other types of leave
The following leave entitlements are aligned with the NES, providing employees with necessary support in various situations:
- Personal/carer’s leave: Full-time employees receive 10 days of paid personal/carer’s leave annually. Part-time employees accrue this leave on a pro-rata basis. Casual employees are entitled to up to 48 hours of unpaid leave to care for a person due to illness, injury, or emergency, with possible extensions by employer agreement.
- Compassionate leave: Employees are entitled to two days of compassionate leave for each eligible occasion, such as the death or serious illness of a close family member.
- Parental leave: Employees can take up to 12 months of unpaid parental leave, with the option to request an additional 12 months. Disputes about requests for extensions can be resolved under the dispute resolution clause or section 76B of the Act.
- Community service leave: Employees are entitled to unpaid leave for community service activities, including voluntary emergency management activities or jury duty.
- Family and domestic violence leave: Employees are entitled to 10 days of unpaid leave per year to address issues related to family and domestic violence. Employers must handle information regarding family and domestic violence with confidentiality. Acceptable evidence may include documents from police, courts, family violence support services, or a statutory declaration.
Public holidays
Public holidays provide employees with essential time off and are a key aspect of entitlements under the Fast Food Industry Award 2020. Here is a summary of how public holidays are administered according to the award and the NES:
Clause
Details
General entitlement
Public holiday entitlements are outlined in the NES. Employees (excluding casuals) are entitled to a paid day off on a public holiday.
Reasonable refusal
Employers may request an employee to work on a public holiday if the request is reasonable.
Employees have the right to refuse if the request is unreasonable or if their refusal is reasonable.
Substituting a public holiday
Employers and employees can mutually agree to substitute another day for a public holiday.
Substituting a part-day public holiday
Employers and employees can mutually agree to substitute another part-day for a part-day that would otherwise be a public holiday.
Penalty rates for work on public holidays
Any work performed on a public holiday must be compensated at the penalty rates specified.
Recognised public holidays
Public holidays recognised under the NES include New Year’s Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Queen’s Birthday, Christmas Day, and Boxing Day, among others.
Additional public holidays
States and territories can declare additional public holidays, which must be observed by employers.
Substitute holidays
If a public holiday falls on a weekend, a substitute public holiday is typically declared, often the following Monday.
Fast Food Award payment management tips
Effectively managing payments and entitlements under the Fast Food Industry Award can be intricate. Here are some strategies to ensure compliance with minimum wage, payment of wages, overtime, penalty rates, leave, superannuation, and other entitlements:
- Stay informed about award rates: Regularly review and update yourself on the minimum wage rates, overtime, and penalty rates as specified in the award. These rates may change annually, so maintaining current knowledge is essential.
- Use reliable payroll software: Invest in dependable payroll software, like Rippling, to automate the calculations for wages, overtime, penalty rates, and superannuation. This helps minimise errors and ensures timely payments.
- Maintain accurate record-keeping: Keep detailed and precise records of all employee payments, including regular wages, overtime, penalty rates, and leave entitlements. This is crucial for compliance and resolving any disputes.
- Conduct regular audits: Periodically audit your payroll system to ensure it complies with the Fast Food Industry Award. Verify that all payments align with the latest award requirements.
- Document employee agreements: Ensure all agreements regarding annual leave (including leave in advance and cashing out leave), and overtime (including time off in lieu) are documented and signed by both employer and employee.
- Provide training and support: Train your HR and payroll staff on the specifics of the Fast Food Award. Ensure they understand the details of the award to manage payments and entitlements accurately.
- Seek consultation and legal advice: Regularly consult with industrial relations experts or legal advisors to stay updated on any changes in the award or employment laws that could impact your payroll practices.
- Manage leave effectively: Accurately track employee leave balances, including annual leave, personal/carer’s leave, compassionate leave, and other entitlements. Ensure employees are aware of their leave balances and entitlements.
- Ensure superannuation compliance: Make sure superannuation contributions are correctly calculated based on ordinary time earnings (OTE) and paid on time. Use payroll software to automate these calculations and payments.
- Communicate with employees: Maintain open communication with employees about their pay, entitlements, and any changes to award conditions. This helps build trust and prevent misunderstandings.
- Stay informed about NES: Keep up to date with the National Employment Standards, which provide foundational guidelines that interact with the Fast Food Award provisions.
Fast Food Industry Award nuances
The Fast Food Industry Award encompasses a wide range of roles within the fast food sector, making it crucial for employers to understand and comply with its specific provisions. Here are some key nuances to be aware of:
- Late-night loading: Employers may need to pay additional loading for employees working late-night hours, separate from overtime and penalty rates. This compensates for the inconvenience of working during unsocial hours.
Impact: Employers might be caught off guard by this additional loading, potentially leading to unexpected payroll increases or non-compliance. Properly accounting for these costs is essential to avoid budgetary surprises and ensure compliance with the award. - Public holiday staffing: There’s a significant increase in pay rates for employees, including casuals, who work on public holidays.
Impact: Planning staffing for public holidays requires careful consideration due to the increased costs. Employers should budget accordingly to cover these higher wages, ensuring compliance and avoiding financial strain from non-compliance issues.
Simplifying Fast Food Award pay, overtime and superannuation compliance with Rippling
Managing pay, overtime, superannuation, and annual leave under modern awards can be complex. Rippling's all-in-one platform streamlines these processes, ensuring accuracy, compliance and total peace of mind. Key features include:
- Accurate payroll calculations: Automatically calculate award pay rates, including penalty rates, allowances and overtime.
- Overtime management: Track and manage overtime hours according to award requirements.
- Superannuation compliance: Ensure correct calculation, reporting and payment of superannuation contributions.
- Integrated payroll systems: Seamlessly integrate with existing payroll systems.
- Real-time updates: Receive updates on changes to pay rates and superannuation rules for various awards.
With Rippling, you can do more than just meet award compliance requirements; you can exceed them. Take the tour or contact us today!
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.
