Emie WangThe Fast Food Industry Award 2020 (MA000003) is the federal Modern Award that sets the minimum pay rates, penalty rates, and employment conditions for workers in fast food restaurants and takeaway outlets across Australia. It covers approximately 210,000 employees — one of the largest award workforces in the country — working for outlets such as McDonald's, KFC, Domino's, Subway, and thousands of independent takeaway businesses. Negotiated under the Fair Work Act 2009, the Award is administered by the Fair Work Commission (FWC) and sets enforceable minimums that all covered employers must meet or exceed. Enterprise agreements at major chains must pass the Better Off Overall Test (BOOT) against this Award before they can be approved.
Pay Structure — Classification Levels and Hourly Rates
The Fast Food Industry Award 2020 classifies employees into three levels based on duties and responsibilities. The following rates apply for the 2025-26 financial year (effective from 1 July 2025):
| Classification | Weekly Rate | Hourly Rate |
|---|---|---|
| Level 1 | AUD $1,008.90 | AUD $26.55 |
| Level 2 | AUD $1,068.40 | AUD $28.12 |
| Level 3 (supervising 1 or fewer) | AUD $1,084.90 | AUD $28.55 |
| Level 3 (supervising 2 or more) | AUD $1,098.20 | AUD $28.90 |
Standard full-time hours under the Award are 38 per week, with a maximum of 38 ordinary hours plus reasonable additional hours.
Level 1 covers the majority of fast food workers: food preparation, taking orders, cooking, serving customers, food delivery, and cleaning. This level also encompasses team members being trained.
Level 2 applies to employees who hold supervisory responsibility for other workers, or who exercise a trade or equivalent skill in their role.
Level 3 covers appointed shop or outlet managers. The rate depends on how many staff the manager is directly supervising during their shift.
Junior Rates (Under-21)
The Award recognises age-based junior rates as a percentage of the adult Level 1 rate. Given the very high proportion of young workers in fast food, these rates affect a significant portion of the workforce:
| Age | % of Adult Rate | Hourly Rate (2025-26) |
|---|---|---|
| Under 16 | 40% | AUD $10.62 |
| 16 years | 50% | AUD $13.28 |
| 17 years | 60% | AUD $15.93 |
| 18 years | 70% | AUD $18.59 |
| 19 years | 80% | AUD $21.24 |
| 20 years | 90% | AUD $23.90 |
| 21 years and over | 100% | AUD $26.55 |
Junior rates apply to ordinary time. They do not reduce penalty rates, which are calculated as a percentage of the applicable junior hourly rate. The Fair Work Ombudsman (FWO) conducts regular audits of fast food chains to enforce correct payment of junior rates.
Working Hours, Overtime and Penalty Rates
Casual loading (25%): Casual employees receive an additional 25% loading on top of the base rate under National Employment Standards (NES) s.67B (effective 26 August 2022). This compensates for the lack of paid leave entitlements.
Penalty rates for full-time and part-time employees:
| Shift | Penalty Rate |
|---|---|
| Monday–Friday, 10 pm–midnight | 110% |
| Monday–Friday, midnight–6 am | 115% |
| Saturday | 125% |
| Sunday (Level 1) | 125% |
| Sunday (Level 2 and 3) | 150% |
| Public holidays | 225% |
Penalty rates for casual employees (25% loading already included in listed rate):
| Shift | Casual Rate |
|---|---|
| Monday–Friday, 10 pm–midnight | 135% |
| Monday–Friday, midnight–6 am | 140% |
| Saturday | 150% |
| Sunday (Level 1) | 150% |
| Sunday (Level 2–3) | 175% |
| Public holidays | 250% |
Overtime rates for full-time and part-time employees:
| Overtime period | Rate |
|---|---|
| Monday–Saturday, first 2 hours | 150% |
| Monday–Saturday, after 2 hours | 200% |
| Sunday overtime | 200% |
| Public holiday overtime | 250% |
Note that Sunday penalty rates differ depending on classification level — a notable feature of the Fast Food Industry Award that distinguishes it from some other service-sector awards.
Annual Leave
Under Fair Work Act 2009 s.87 (NES), all full-time fast food workers are entitled to four weeks (20 days) of paid annual leave per year. Part-time employees accrue leave on a pro-rata basis proportional to their contracted hours. Casual employees do not receive paid annual leave — the 25% casual loading is designed to compensate for this.
Annual leave loading: The Fast Food Industry Award 2020 provides for annual leave loading of 17.5% of the employee's minimum hourly rate for all ordinary hours of the leave period, or the applicable weekend penalty rate — whichever is greater. For many fast food workers whose rosters include regular weekend shifts, the penalty-based calculation may yield a higher leave loading amount.
Accrual rate: Annual leave accrues continuously throughout employment at a rate of approximately 1.538 hours per week (for full-time workers on 38-hour weeks), or 2.923 hours per fortnight.
Cashing out: Under the Award, employees may cash out up to two weeks of annual leave in any 12-month period, provided at least four weeks of accrued leave remains after cashing out. This requires a genuine written agreement.
Excessive accrual: Where accrued annual leave exceeds eight weeks, the employer may direct the employee to take leave (with minimum notice), or the employee may request to take their excess leave.
Notice Period
The Fast Food Industry Award 2020 does not provide notice periods beyond the NES minimum. Accordingly, the following statutory notice periods apply under Fair Work Act 2009 s.117:
| Years of continuous service | Minimum notice (employer) |
|---|---|
| Less than 1 year | 1 week |
| 1–3 years | 2 weeks |
| 3–5 years | 3 weeks |
| 5 years or more | 4 weeks |
Supplement for older workers: Employees aged 45 or over with at least two years of continuous service are entitled to one additional week of notice on top of the above scale.
Payment in lieu: An employer may choose to pay the employee for the notice period rather than require them to work it. This payment must be calculated at the employee's base rate plus any award entitlements that would have applied during that period.
Employee resignation: The NES minimum notice scale also applies when an employee resigns, though enterprise agreements or individual contracts may specify a different notice period for resignation. Always check your employment contract.
Redundancy Pay
Redundancy pay under the Fast Food Industry Award 2020 follows the NES genuine redundancy scale set out in Fair Work Act 2009 Schedule 4. The Award does not provide any enhancement above the NES minimum:
| Years of continuous service | Weeks of redundancy pay |
|---|---|
| 1 year | 4 weeks |
| 2 years | 6 weeks |
| 3 years | 7 weeks |
| 4 years | 8 weeks |
| 5 years | 10 weeks |
| 6 years | 11 weeks |
| 7 years | 13 weeks |
| 8 years | 14 weeks |
| 9 years | 16 weeks |
| 10 years or more | 12 weeks (capped) |
Important: Casual employees are not entitled to redundancy pay because they do not have a guaranteed pattern of ongoing work.
Small business exemption: Employers with fewer than 15 employees are exempt from the NES redundancy pay obligation. If you work for a small independent fast food outlet with fewer than 15 staff, you may not receive redundancy pay on dismissal.
Tax treatment: Genuine redundancy payments are treated as Eligible Termination Payments (ETPs) and receive concessional tax treatment. The tax-free component in 2025-26 is AUD $12,524 plus AUD $6,264 per completed year of service. Amounts above this threshold are taxed at a concessional rate.
If your employer offers a redeployment to another position within the same company or a related entity, this may affect your entitlement to genuine redundancy pay. Contact the Fair Work Ombudsman (FWO) on 1300 724 690 if you are unsure.
Superannuation
From 1 July 2025, Australian employers must pay a Superannuation Guarantee (SG) rate of 12% of ordinary time earnings into your chosen superannuation fund under the Superannuation Guarantee (Administration) Act 1992. The Fast Food Industry Award 2020 does not provide any additional super contribution above this statutory minimum.
Ordinary time earnings for super purposes includes your base rate plus allowances paid on a regular basis, but does not include overtime payments.
Under Fair Work Act 2009 s.149A, employees covered by the Award are entitled to choose their own super fund. If you have not nominated a fund, your employer must pay into your stapled super account (a super fund linked to you from previous employment) or, if none exists, a default fund nominated in their enterprise agreement or award.
Contributions cap: The concessional contributions cap for 2025-26 is AUD $30,000 per year, which includes both employer SG contributions and any salary-sacrificed amounts. Contributions above this cap are taxed at your marginal rate.
State and Territory Variations
The Fast Food Industry Award 2020 is a federal Modern Award and applies the same pay rates across all Australian states and territories. However, several entitlements vary by jurisdiction:
Long service leave entitlements are set by state and territory legislation, not the Fair Work Act. Qualifying periods and payment amounts differ significantly:
| State/Territory | Qualifying period | Entitlement | Legislation |
|---|---|---|---|
| New South Wales | 10 years | 2 months (8.667 weeks) | Long Service Leave Act 1955 |
| Victoria | 7 years | 6.067 weeks | Long Service Leave Act 2018 |
| Queensland | 10 years | 8.667 weeks | Industrial Relations Act 2016 s.94 |
| South Australia | 10 years | 13 weeks | Long Service Leave Act 1987 |
| Western Australia | 10 years | 8.667 weeks | Long Service Leave Act 1958 |
| Tasmania | 10 years | 8.667 weeks | Long Service Leave Act 1976 |
| Australian Capital Territory | 10 years | 6.067 weeks | Long Service Leave Act 1976 |
| Northern Territory | 10 years | 13 weeks | Long Service Leave Act 1981 |
Use the Long Service Leave tab in the calculator above to estimate your entitlement based on your state and years of service.
Public holidays: The following are federal public holidays and apply nationwide: New Year's Day, Australia Day, Good Friday, Easter Saturday, Easter Monday, ANZAC Day, King's Birthday (date varies by state), Christmas Day, and Boxing Day. State-specific public holidays include Melbourne Cup Day (VIC), EKKA Show Day (QLD), Adelaide Cup Day (SA), Foundation Day/Western Australia Day (WA), Eight Hours Day (TAS), and Family & Community Day (ACT).
Workers compensation: Each state and territory operates its own workers compensation scheme (e.g. icare in NSW, WorkSafe Victoria, WorkCover Queensland). Premiums, entitlements, and claims processes differ significantly. If you are injured at work, contact your state workers compensation authority.
Your Rights at Work
Unfair dismissal: If you have been employed for at least six months (12 months for small business employers), you can apply to the Fair Work Commission for an unfair dismissal remedy under Fair Work Act 2009 s.382. Applications must be made within 21 days of your dismissal taking effect.
General protections: Fair Work Act 2009 Part 3-1 prohibits adverse action against employees for exercising a workplace right — for example, making a complaint, taking leave, or engaging in union activity. These protections apply from day one of employment and do not require a qualifying period.
Right of entry: Union officials from the United Workers Union (UWU) or SDA hold permit rights to enter your workplace to investigate potential Award breaches or to consult with union members, subject to notice requirements under Fair Work Act 2009 Part 3-4.
Wage theft: Underpayment of minimum Award rates is unlawful. Several major fast food chains have faced significant penalties from the Fair Work Ombudsman following wage theft investigations. If you believe you are being underpaid, you can lodge an anonymous complaint with the FWO online or call 13 13 94.
Workplace health and safety: All workers are protected under the Work Health and Safety Act 2011 (Cth) or applicable state WHS legislation. You have the right to refuse unsafe work without penalty.
This article is for general information purposes only and does not constitute legal advice. For questions about your specific employment situation, contact your union (United Workers Union or SDA), the Fair Work Ombudsman (1300 724 690), or a qualified employment lawyer.
