Restaurant Industry Award coverage: A comprehensive guide

The Restaurant Industry Award 2020 is specifically tailored to cover employees working in the restaurant sector, ensuring they receive fair wages and conditions. This award addresses the unique needs and challenges faced by workers in this industry, such as variable hours, weekend shifts, and the fast-paced nature of restaurant work. However, it also includes specific provisions and exclusions that employers must understand to ensure compliance and correct application.

Understanding the nuances of the Restaurant Industry Award is crucial for both employers and employees to ensure fair treatment and adherence to employment standards in the restaurant industry.

Note: The information provided in this article is accurate as of 04/09/2024. As award conditions and rates are subject to change, please refer to the latest version of the Restaurant Industry Award for the most current information.

Who’s covered under the Restaurant Industry Award?

The Restaurant Industry Award includes a broad array of roles within the restaurant sector. Here’s an overview of who falls under this award:

Private sector employees in the restaurant industry

These individuals play a key role in the restaurant industry, performing a range of tasks essential to the operation of restaurants, cafes, and similar establishments. Examples include:

• Chefs and cooks: Those responsible for preparing and cooking meals in restaurants, cafes, and other dining establishments.
• Waitstaff: Those serving food and beverages to customers, ensuring a high level of service and customer satisfaction.

• Baristas: Those specialising in preparing and serving coffee and other beverages in cafes and restaurants.

• Restaurant managers: Those overseeing the daily operations of a restaurant, including staff management, financial oversight, and ensuring a quality dining experience.

On-hire employees

On-hire or agency employees in the restaurant sector are hired by one company (such as a staffing agency) but work temporarily within a restaurant setting on an as-needed basis. Examples include:

• Temporary waitstaff: Those providing service support during peak periods or special events at various restaurant locations.

• Agency chefs: Skilled chefs working across different kitchens to support staff shortages or special menu requirements.

• Casual bar staff: Those assisting with beverage service in restaurants and nightclubs on a temporary basis.

Trainees employed by group training employers

Trainees in the restaurant sector gain hands-on experience supported by a group training organisation, blending work-based learning with formal education. Examples include:

• Apprentice chefs: Those gaining practical cooking skills while pursuing formal qualifications in culinary arts.

• Hospitality trainees: Those applying learning in real-world restaurant settings, emerging as professionals in various hospitality roles.
• Cafe trainees: Those working alongside experienced baristas and cafe staff, gaining practical experience and skills in beverage preparation and customer service.

Who isn’t covered under the Restaurant Industry Award?

• Employees excluded from modern awards: This category includes individuals in roles specifically excluded by the Fair Work Act, such as high-level executives or senior managers, like the Chief Executive Officer of a restaurant chain.
• Employees under modern enterprise awards or instruments: This includes those covered by bespoke enterprise agreements tailored to their organisation or industry. For example, staff at a large casino operating under its own enterprise agreement wouldn’t be covered.
• State reference public sector employees: This category covers those governed by awards specific to public sector roles within their state. For instance, employees working in a state-operated dining facility under a public sector award are excluded.

It’s important to understand the exclusions and limitations of the Restaurant Industry Award. Below, you can find details of those who fall outside this award's coverage:

• Employees covered by other specific awards: Certain employees are covered under different awards specific to their roles. For example, employees working in hotels, motels, or similar establishments, employees working in licensed clubs, and employees working in fast food outlets.

If multiple awards might apply, the one that most closely matches the employee's actual job duties and work environment is likely to be the applicable one. For instance, a chef working exclusively in a fast food outlet would be covered by the Fast Food Industry Award rather than the Restaurant Industry Award.

Restaurant Award coverage: Practical example

Liam is a full-time head chef at a busy city restaurant. He prepares meals, manages kitchen staff, and ensures food quality standards are met. He also oversees menu planning, ordering supplies, and maintaining a clean and safe kitchen environment.

Analysis

Liam’s role is fundamentally tied to the operations and success of the restaurant. Despite the potential overlap with other hospitality roles, his duties as a head chef place him squarely under the Restaurant Industry Award, which specifically covers employees working in restaurants and similar establishments.

Steps to determine coverage

Determining whether an employee is covered under the Restaurant Industry Award involves a systematic approach. Here’s a step-by-step guide:

1. Identify responsibilities: Start by documenting the primary responsibilities and daily tasks of the employee.
2. Compare with awards: Review the definitions and classifications outlined in the Restaurant Industry Award, as well as any other relevant awards, to find the best match.
3. Predominant Function Test: Assess whether the main function of the employee's job aligns with roles typically covered by the Restaurant Industry Award.
4. Check exclusions: Examine the exclusions in the Restaurant Industry Award to ensure the employee's role isn't covered by another specific award, such as the Hospitality Industry (General) Award or the Fast Food Industry Award.
5. Review other employment agreements: Look into any enterprise agreements or specific contracts that might influence award coverage.
6. Consult experts: If there’s any uncertainty about coverage, seek advice from industrial relations or legal professionals.
7. Maintain thorough records: Document your analysis, the awards considered, any advice received, and the rationale for your final decision to ensure clarity and compliance.

Distinctions within Restaurant Industry Award coverage

Understanding the coverage specifics of the Restaurant Industry Award is essential for ensuring compliance. Here are some key nuances that might catch employers by surprise:

Broad definition of the restaurant industry

The award covers a wide range of establishments, including restaurants, cafes, nightclubs, reception centres, and roadhouses. This broad definition ensures that various types of dining and hospitality venues are included under the award. However, employers might be caught off guard by this extensive coverage and mistakenly assume that their unique or hybrid business models fall outside the scope of the award.

Specific exclusions

Certain establishments are explicitly excluded from the Restaurant Industry Award. These include businesses covered by the Hospitality Industry (General) Award 2020, Registered and Licensed Clubs Award 2020, and the Fast Food Industry Award 2020. Employers operating in these excluded categories must refer to the relevant specific awards for compliance. 

This can be a pitfall for employers who might assume that their restaurant or café is covered under the Restaurant Industry Award without recognising that it falls under one of these specific exclusions, leading to the incorrect application of award provisions.

Coverage across different establishments

The award covers a variety of settings within the restaurant industry but excludes certain specific settings. For example, a tea room operated in connection with a restaurant business is included, whereas a restaurant within a registered club is excluded. This distinction can catch employers by surprise, particularly those managing multiple types of hospitality venues. Misunderstanding these nuanced distinctions can result in applying the wrong award, thereby violating compliance requirements.

Simplifying Restaurant Award coverage compliance with Rippling

Managing the complexities of award coverage demands meticulous attention to ensure both compliance and fair treatment of employees. Rippling’s unified platform offers a suite of comprehensive tools to simplify and streamline your business’s adherence to award coverage requirements. 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.