A general overview of the Restaurant Industry Award

The Restaurant Industry Award 2020 covers a range of employees working in a variety of roles within the restaurant sector, ensuring they receive fair wages and working conditions tailored to their industry.

This article provides a summary of the key aspects of the Restaurant Industry Award, including coverage, employment types, ordinary hours and rostering guidelines, minimum pay rates, allowances, superannuation, and leave entitlements. Understanding these provisions is essential for complying with legal obligations and supporting fair and consistent employment practices within your restaurant.

For those seeking more detailed information, we provide links throughout this article to in-depth guides on each topic.

Note: The information provided in this article is accurate as of 02/09/2024. As award conditions and rates are subject to change, please refer to the latest version of the Restaurant Industry 2020 for the most current information.

Restaurant Industry Award coverage

Below, you can explore an overview of Restaurant Award coverage:

Who’s covered

• Chefs and cooks: Preparing and cooking meals in restaurants and cafes.
• Waitstaff and baristas: Serving food, drinks, and coffee in dining establishments.
• Restaurant managers: Managing daily operations, staff, and customer experience.
• On-hire employees: Temporary workers like wait staff and chefs hired through agencies.
• Trainees: Apprentice chefs and hospitality trainees gaining practical experience.

Who isn’t covered

• High-level executives: Senior managers and executives (e.g., CEOs).
• Employees under enterprise agreements: Those covered by specific agreements (e.g., large casinos).
• State public sector employees: Those covered by state-specific public sector awards.
• Employees under other awards: Workers in hotels, motels, licensed clubs, or fast food outlets.

In cases where multiple awards could apply, the award most closely matching the job duties is likely to be used.

Practical example: Maria works as a chef in a busy downtown cafe, preparing meals and managing the kitchen staff. Since her role relates directly to food preparation in a restaurant setting, she is covered by the Restaurant Award, which ensures she receives appropriate wages and working conditions for her role.

Learn more about Restaurant Award coverage

Employment types under the Restaurant Industry Award

The Restaurant Award outlines three primary employment types, each tailored to different work arrangements and needs:

• Full-time: Employees work on an ongoing basis with a standard 38-hour work week, providing consistent job security and a predictable schedule.
• Part-time: These employees work fewer hours than full-time staff, with their hours set out in advance as part of their contract. They receive proportional benefits based on the number of hours worked.
• Casual: Casual employees work on an as-needed basis, with no guaranteed hours each week. They receive a higher hourly rate, known as casual loading, to compensate for the irregular hours and lack of long-term job security.

Restaurant Industry Award ordinary hours

The Restaurant Award outlines standard working hours, known as ordinary hours, for various employment types to ensure consistency and fairness.

• Full-time employees: Typically work 38 hours per week, which can average over four weeks. They work between six and 11.5 hours per day.
• Part-time employees: Work fewer than 38 hours per week, with a minimum shift of three hours. They agree on their hours and availability in writing in advance and can work up to 11.5 hours per day.
• Casual employees: Have flexible working hours, usually fewer than 38 per week, with a minimum engagement of two consecutive hours per shift.
• On-hire workers: Follow the ordinary hours as per their contract with the staffing agency, ensuring similar conditions to directly employed staff.
• Apprentices/trainees: Generally adhere to the ordinary hours of either full-time or part-time staff, depending on their training agreements.

Additional conditions

The award limits the spread of hours for split shifts to 12 hours. Employees may work more than 10 ordinary hours on up to eight days within a four-week cycle, but only three of those days can be consecutive. Any work performed before the official hours, if it continues into the ordinary workday, counts as part of the ordinary hours.

Rostering under the Restaurant Industry Award

The Restaurant Award provides clear guidelines for scheduling employee shifts and breaks, ensuring fairness and compliance:

• Regular and predictable hours: Full-time and part-time employees should have set, predictable hours agreed upon in writing before they start their roles.
• Notice periods: Employers must give at least seven days' notice for any roster changes unless there are unforeseen operational needs or both parties agree otherwise.
• Roster flexibility: The award allows for flexibility, enabling employers and employees to agree on varying certain work hour terms to meet both operational and personal needs.
• Flexible working requests: Employees can request flexible work arrangements for reasons like family obligations. Employers must consider these requests reasonably, in line with the National Employment Standards (NES), and can only reject them on reasonable business grounds.

Breaks and rest periods

The award also defines specific entitlements for breaks to ensure employees get adequate rest.

• Unpaid meal breaks: Employees working five or more hours up to 10 hours per day have a right to a 30-minute unpaid meal break, which they should take after the first hour and within the first six hours of work.
• Paid rest breaks: Employees receive two 10-minute paid rest breaks daily - one before and one after their meal break. If working more than four hours on a Saturday morning, they must have an additional 10-minute paid rest break.
• Additional rest breaks: Employees who work more than five continuous hours after a meal break or more than two hours of overtime after their rostered hours have a right to an extra 20-minute paid rest break.
• Breaks between shifts: Employees (excluding casuals) must have at least 10 hours of rest between consecutive shifts and at least eight full days off in a four-week period.

Learn more about Restaurant Award employment types, ordinary hours, and rostering

Restaurant Industry Award pay rates

The Restaurant Award sets minimum wages to ensure fair compensation. Adult employees aged 21 and over earn between $891.50 and $1,126.30 per week, depending on their level. Junior employees under 21 receive a percentage of the adult rate. For example, an 18-year-old kitchen attendant earns 70% of the adult rate. Cooking apprentices' pay varies by training year, with junior apprentices starting at 55% of the Level 4 rate, and adult apprentices at 80%. Employees performing higher duties for more than two hours in a shift receive the higher classification rate for the entire shift.

The award also defines payment terms to provide consistency and clarity. Employers can choose to pay employees in alignment with a weekly or fortnightly pay period, with payments made by cash, cheque, or electronic transfer. If employment ends, the employer must pay all outstanding wages and entitlements within seven days of termination, ensuring timely compensation for departing employees.

See full list of Restaurant Award pay rates

Allowances under the Restaurant Industry Award

The Restaurant Award includes various allowances to ensure fair compensation for extra duties or work-related expenses. For example, employees working overtime without notice receive a $16.31 meal allowance. The award also provides a split shift allowance of $5.16 per additional shift period, and cooks using their own tools can earn up to $9.94 per week in tool allowances. Additionally, the award covers travel time and transport costs for work more than 80 kilometres away from the usual workplace. These are just some of the allowances available under the award.

See full list of Restaurant Award pay allowances

Restaurant Industry Award superannuation

Superannuation is an important part of employee compensation under the Restaurant Award. Employees are eligible for superannuation contributions if they earn $450 or more per month before tax and are over 18 years old, or if they're under 18 and work more than 30 hours a week. The current superannuation guarantee rate is 11.5% of an employee's ordinary time earnings (OTE).

Employees can choose their super fund; if they don’t, employers must check with the ATO for a stapled fund. If no stapled fund is available, contributions go to a nominated default fund. Employees can also make voluntary contributions from their after-tax income to boost their retirement savings. Employers must ensure correct and timely super contributions to avoid penalties.

Restaurant Industry Award overtime and penalty rates

Overtime and penalty rates under the Restaurant Award ensure employees receive fair compensation for working beyond their regular hours or during less desirable times. These rates reflect the additional effort and inconvenience of working overtime or outside standard work hours.

Overtime rates

Under the Restaurant Award, overtime hours are those worked outside of the standard hours of 6 AM to midnight for full-time employees, beyond agreed-upon hours for part-time employees, and over 38 hours per week or 12 hours per day for casual employees. For the first two hours of overtime, employees receive 150% of their regular hourly rate (time and a half), and 200% (double time) for any additional hours.

Practical example: Jackie, a full-time cook, works three extra hours on a Wednesday. For the first two hours, she earns 150% of her regular hourly rate. If her regular rate is $25/hour, she would earn $75 for those two hours. The third hour earns 200%, so she makes $50 for that hour, bringing her total overtime pay to $125 for the three hours.

Employees can agree to take time off instead of receiving overtime pay, using the time within six months. If employees don’t get an eight-hour rest period after overtime, employers must pay them double time until they get a break.

Penalty rates

Penalty rates under the Restaurant Award apply to work done outside ordinary hours that don’t count as overtime. For instance, casual employees receive 150% of their regular hourly rate for work on Saturdays, acknowledging the less desirable nature of weekend work. Penalty rates increase further for work performed on Sundays and public holidays, offering even greater compensation for the inconvenience.

Practical example: Tom, a casual employee, works five hours on a Saturday. Since Saturday work is paid at 150% of his regular hourly rate, and his rate is $25/hour, he earns $187.50 for those five hours. Penalty rates for public holidays can go up to 250%, recognising the inconvenience of working during such times.

Learn more about Restaurant Award overtime and penalty rates

Restaurant Industry Award leave entitlements and public holidays

The Restaurant Award provides a range of leave entitlements and public holiday provisions to support employees in balancing their work and personal lives. These entitlements align with the NES and include annual leave, personal/carer’s leave, and provisions for public holidays.

Annual leave

Full-time employees have a right to four weeks of paid annual leave per year, while part-time employees receive a pro-rata amount based on their weekly hours. During their annual leave, employees receive their regular pay plus a 17.5% loading. For example, a full-time worker earning $1,500 per week would receive an additional $262.50 per week of leave. Employers can require employees to take leave during a shutdown period with 28 days’ notice or if they have excessive leave accruals (more than eight weeks). If an employer and employee can't reach an agreement on reducing excessive leave, employers can direct employees to take leave, ensuring at least six weeks remain.

Other types of leave

Employees under this award also have a right to 10 days of paid personal/carer's leave per year for personal illness or to care for a sick family member. Compassionate leave provides two days of paid leave per occasion for a death or serious illness in the immediate family. Parental leave allows up to 12 months of unpaid leave, with the option to request an additional 12 months. Community service leave is available for activities like jury duty or emergency management, and employees dealing with domestic violence can take up to 10 days of paid leave each year for necessary support.

Public holidays

Employees (excluding casuals) have a right to a paid day off on public holidays, as per the NES. Employers can request employees to work on public holidays, but employees can refuse on reasonable grounds. If both parties agree, they can substitute another day for a public holiday. Employers must pay employees working on public holidays at the applicable penalty rate, ensuring fair compensation.

Learn more about Restaurant Award leave entitlements

Key considerations for the Restaurant Industry Award

Understanding the details of the Restaurant Industry Award is essential for employers to ensure compliance and avoid mistakes. Here are some important nuances that can lead to unintended non-compliance:

• Award coverage: Certain positions within the restaurant sector may fall under different awards depending on their specific job duties or work environment. For example, a chef working in a full-service restaurant falls under the Restaurant Industry Award, while the same chef working exclusively in a fast food outlet falls under the Fast Food Industry Award.
  
  Why it matters: Employers must carefully evaluate job roles to ensure they apply the correct award. Misclassification can lead to underpayments, non-compliance with award standards, and potential legal and financial consequences.

• Strict rostering notice periods: The Restaurant Industry Award mandates a minimum of seven days' notice for any changes to employee rosters unless mutually agreed otherwise or in cases of unforeseen operational needs.
  
  Why it matters: Failing to provide adequate notice can lead to scheduling conflicts and employee dissatisfaction. Adhering to these notice requirements is essential for compliance and maintaining positive employee relations.

• Rounding of junior rates: The award specifies that employers must round junior rates to the nearest $0.10. If the amount of cents is $0.05 or more, they should round it up to the next $0.10. If it’s $0.04 or less, they should round it down to the previous $0.10.
  
  Why it matters: Overlooking this rounding rule can lead to underpayments or overpayments. Accurate calculations are essential to maintain compliance and prevent disputes with employees.

• Overtime for part-time and casual employees: Part-time employees earn overtime for hours worked beyond their agreed schedule or outside their regular rostered hours. Casual employees receive overtime rates when they work more than 38 hours a week or 12 hours in a day.
  
  Why it matters: Employers must closely monitor hours and apply the correct overtime rates to avoid underpaying or overpaying employees. Mismanagement can result in financial losses, compliance issues, and potential back payments.

Simplify Restaurant Industry Award compliance with Rippling

Managing compliance with the Restaurant Industry Award can be challenging. Rippling’s all-in-one platform streamlines the process, helping your business maintain compliance and ensuring fair treatment of employees according to the award. Key features include:

Comprehensive coverage and compliance tools

Rippling’s platform offers employee classification and real-time compliance alerts, keeping you updated with any changes in award coverage. With detailed reporting, audit support, and customisable templates, you can ensure that your business remains compliant with all facets of the Restaurant Award.

Streamlined rostering 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.