KFC Case Study : Discovering Fast Food Award Pay Rates

KFC Case Study : Discovering Fast Food Award Pay Rates

Table of content

  1. What is the Fast Food Award Pay Rates ?
  2. Case study of KFC
  3. How can Workstem assist you ?

This article serves as a comprehensive guide to understanding the pay rates within the Australian Fast Food Industry Award, specifically focusing on KFC as an illustrative example. For more detailed information on this award, please refer to the Fast Food Award . Gain valuable insights into how pay rates are structured and ensure fair compensation within the fast food industry.

What is the Fast Food Award Pay Rates ?

The Fast Food Award Pay Rates are specific wage rates and conditions set by the Fair Work Commission in Australia for employees in the fast food industry. They determine minimum wages, allowances, penalty rates, and other entitlements for workers. Compliance with these rates is crucial to ensure fair compensation and adherence to employment laws.

Learn more: Fast Food Industry Award Guide [MA000003]

Case study of KFC

What are the pay rates ?

The pay rates at KFC in Australia for team members are approximately AU$25.25 per hour, which is 12% below the national average.

How is the shiftwork arranged ?

Rostering

  • Consultation on Roster Changes: KFC is required to consult with employees before proposing any changes to their roster or ordinary hours of work.
  • Two Consecutive Days Off: Employees are entitled to have two consecutive days off per fortnight, unless mutually agreed otherwise.
  • Breaks Between Shifts: Full-time and part-time employees must have a minimum of 10 hours’ break between shifts. However, at the regular changeover of shifts (once per week), 8 hours may be substituted for the 10-hour break.
  • Rostered Hours and Days: Employees are typically rostered for hours on five days per week. In certain cases, such as when ordinary hours are worked on not more than four days in the following week, it may be extended to six days.
  • Consecutive Days of Work: Employees can work more than six consecutive days over adjoining weeks at ordinary rates only if they elect to do so.
  • Advanced Rosters: Rosters are set at least seven days in advance.
  • Consideration for Study Commitments: KFC takes into account an employee’s study commitments when creating rosters.
  • Consideration for Safe Transport Home: KFC considers an employee’s access to safe transport home when scheduling shifts.
  • Spread of Working Hours: All ordinary hours of work must be completed within a spread of 11 hours, including breaks, from Monday to Sunday.
  • Maximum Daily Working Hours: No employee is allowed to work more than 10 hours (excluding meal breaks) on any given day. However, the Award allows for a maximum of 11 ordinary hours to be rostered on any day.

These provisions outline the guidelines and requirements related to rostering and working hours in the new Agreement for employees at KFC.

Part Time Hours

  • Guaranteed Minimum Hours: Part-time employees will agree in writing on the number of guaranteed minimum hours to be worked each week or over a roster cycle. This agreement is made at the time of engagement. Any variation to the guaranteed minimum hours agreed upon can only be made with the written agreement of the part-time employee.
  • Minimum Guaranteed Hours: Part-time employees (including trainees) are guaranteed a minimum of 6 hours but less than 38 hours per week. The minimum guaranteed hours can be amended to 3 hours per week if the employee changes their availability and is only available to work on one day. Changes to availability require a 14-day notice. If KFC cannot reasonably accommodate the minimum guaranteed hours, a new agreement on minimum hours and days of work must be reached.
  • Additional Ordinary Hours: Part-time employees may be offered ordinary hours in addition to their guaranteed minimum hours within their agreed availability. If accepted, these additional hours can be worked without the payment of overtime. Part-time employees have the choice to accept or reject the additional hours on each occasion, except for up to a maximum of 15 minutes at the end of the shift, which will be paid at ordinary time subject to daily and weekly maximums specified in the Agreement.
  • Request for Increased Guaranteed Minimum Hours: If part-time employees regularly work additional hours over a period of 12 months, they may request an increase in their guaranteed minimum hours as per clause 5.2.9 of the proposed Agreement.

Breaks

Hours worked

Paid Rest Pause

Unpaid Meal Break

Less than 4 hours No paid rest pause

No unpaid meal break

4 hours but less than 5 hours

One paid 10 minute rest pause No unpaid meal break

5 hours but less than 9 hours

One paid 10 minute rest pause One unpaid meal break of 30 to 60 minutes
More than 8 hours Two paid 10 minute rest pause

One unpaid meal break of 30 to 60 minutes

9 hours or more Two paid 10 minute rest pause

Two unpaid meal breaks of 30 to 60 minutes

How are wages and allowances calculated ?

Minimum rates

After the new Agreement is approved, the minimum rates of pay will apply:

Permanent

LEVEL 1 M-F 6am to 10pm M-F 10pm to Midnight Midnight to 6am Saturday

Sunday

21 years +

21.4632 23.6094 24.6821 26.8290 26.8290
20 years

19.3158

21.2473 22.2126 24.1448

24.1448

19 years

17.1711 18.8881 19.7463 21.4639 21.4639
18 years 15.0237 16.5260 17.2768 18.7797

18.7797

17 years 12.8789 14.1668 14.8104 16.0987

16.0987

16 years

10.7316

11.8047 12.3410 13.4145 13.4145

under 16

8.5842 9.4426 9.8716 10.7303 10.7303
LEVEL 2 M-F 6am to 10pm M-F 10pm to Midnight Midnight to 6am Saturday

Sunday

21 years + 22.7553 25.0284 26.1655 28.4415

34.1300

20 years

20.4789 22.5270 23.5505 25.5990 30.7190
19 years 18.2026 20.0227 20.9324 22.7532

27.3040

18 years

15.9289

17.5213 18.3174 19.9107

23.8930

17 years

13.6526 15.0170 15.6993 17.0649 20.4780
16 years 11.3789 12.5156 13.0843 14.2224

17.0670

under 16 9.1026 10.0114 10.4662 11.3766

13.6520

Casual

LEVEL 1

M-F 6am to 10pm M-F 10pm to Midnight Midnight to 6am Saturday Sunday

21 years +

26.7758 28.9177 29.9887 32.1308 32.1308
20 years 24.0969 26.0245 26.9884 28.9161

28.9161

19 years

21.4213

23.1349 23.9917 25.7054

25.7054

18 years

18.7424

20.2417 20.9914 22.4908

22.4908

17 years

16.0668 17.3520 17.9947 19.2801

19.2801

16 years 13.3879 14.4588 14.9944 16.0654

16.0654

under 16 10.7090 11.5657 11.9940 12.8507

12.8507

LEVEL 2

M-F 6am to 10pm M-F 10pm to Midnight Midnight to 6am Saturday Sunday

21 years +

28.3851 30.6557 31.7911 34.0620 39.7389
20 years 25.5482 27.5919 28.6139 30.6577

35.7674

19 years 22.7081 24.5246 25.4329 27.2496

31.7912

18 years

19.8712 21.4608 22.2556 23.8453 27.8196
17 years

17.0311

18.3934 19.0747 20.4372

23.8434

16 years 14.1942 15.3297 15.8974 17.0330

19.8718

under 16 11.3540 12.2623 12.7165 13.6248

15.8956

Junior rates

Age

% of the Adult Rate
15 years of age and under

40%

16 years of age

50%

17 years of age

60%

18 years of age

70%
19 years of age

80%

20 years of age

90%

21 years of age and over

100%

Overtime rates

Overtime at KFC is applicable when working beyond the rostering provisions, including any additional hours agreed upon by part-time employees. The payment for overtime varies based on the specific circumstances:

  • Overtime, except for Sundays, public holidays, and rostered days off, is paid at 150% of the ordinary rate for the first 2 hours and double the ordinary rate thereafter.
  • Overtime worked on Sundays is paid at 200% for weekly employees (225% for casuals, inclusive of the casual loading).
  • Overtime worked on public holidays is paid at 250% for weekly employees (275% for casuals, inclusive of the casual loading).

Penalty rates

Penalty rates at KFC may undergo two increases. The first increase will occur on the first full pay period after 15 October 2019, if the Agreement is voted up. The second increase will be implemented if the Agreement is approved by the Fair Work Commission (FWC), aligning the penalty rates with those specified in the Fast Food Industry Award. The proposed new penalty rates are as follows:

After 15 October 2019

Upon commencement

Time of the Week

Who Full-time or part-time employees Casual employees Full-time or part-time employees

Casual employees

Monday to Friday Midnight to 6am

All employees 25% 15% 40%

Monday to Friday 6am to 10pm

All employees 25%

25%

Monday to Friday 10pm to Midnight

All employees

25% 10% 35%

Saturday & Sunday

Team members (Level 1) – including delivery drivers 22.25% 47.25% 25%

50%

Saturday Shift Supervisors (Level 2) 22.25% 47.25% 25%

50%

Sunday Shift Supervisors (Level 2) 46.72% 46.72% 50%

75%

Public holiday penalty rates

Public holiday penalty rates will be increased under the new Agreement:

Current

New Agreement

Casual

Permanent Casual

Permanent

100% 100% 150%

125%

Allowance

Meal Allowance
  • $13.32 for working overtime for more than one hour on any day without prior notification.
  • Additional meal or allowance provided for overtime work exceeding 4 hours.
Laundry allowance
  • For a full-time employee—$6.25 per week;
  • For a part-time or casual employee—$1.25 per shift.
Transport Allowance
  • $0.78 per kilometre for general transport.
  • $0.41 per kilometre for employees primarily engaged in delivery duties using their own vehicle.
Travelling Time Reimbursement
  • Employees are paid for travelling time when working away from their usual workplace, as per Clause 22.
Excess Travelling Costs
  • If an employee is required to work at another location for a period not exceeding three weeks, all additional transport costs will be reimbursed.
Safe Transport Home
  • Employees who start or finish work after 10pm or before 7am and are unable to arrange their own safe transport will be provided with safe transportation.
Team Meeting Allowance
  • Employees attending voluntary meetings will be paid an allowance equivalent to the time spent at the meeting, with a minimum payment of one hour’s ordinary pay (including relevant night or weekend penalties).
  • This allowance can apply on a maximum of no more than 6 occasions in any one year for an individual.

*These allowances and reimbursements serve to compensate employees for specific circumstances or expenses related to their work at KFC.

Source: KFC National Enterprise Agreement 2020

How is the leave managed ?

Annual leave

Under the new Agreement, annual leave at KFC will accrue progressively. When employees take annual leave, they will be paid either a 17.5% annual leave loading or the relevant weekend penalty rates they would have received if they had worked, whichever is greater. However, both the loading and penalty rates will not be paid simultaneously. This loading also applies to proportionate leave upon termination.

The new Agreement allows for cashing out of annual leave, meaning employees can choose to receive payment for unused annual leave. Additionally, the Agreement permits employees to take annual leave in advance before they have fully accrued the entitlement, provided there is a written agreement in place. The Agreement also includes provisions for managing excessive leave accruals.

Family And Domestic Violence Leave

The new Agreement provides 10 days of unpaid Family and Domestic Violence leave. Full-time and part-time employees can also use up to 3 days of paid leave from their accrued personal/carers leave balance for these situations.

Public holidays

Under the new Agreement, the clause that provided an additional day off when a Public Holiday fell on a non-working day (excluding ANZAC public holiday) has been removed. This benefit, which applied to full-time employees and 5-day per week part-time employees, is no longer a part of the new Agreement.

How can Workstem assist you ?

Simplify your payroll process and ensure accurate pay rates with Workstem’s automated payroll system. Our pre-built modern award interpretation software covers 122+ awards and 34 EBAs, and keeps you up-to-date with penalty rates and other award entitlements.

Choose between our Standard and Advanced plans, and enjoy a range of benefits such as Fair Work compliance, an employee self-service App, and customised rule set.

Book a free demo with our payroll experts. Experience the efficiency and accuracy of Workstem today!

相關文章

Unlock Your Living Away From Home Allowance (LAFHA)
Unlock Your Living Away From Home Allowance (LAFHA)
What is Living Away From Home Allowance? The LAFHA is an allowance which is: paid to an employee directly by their company to cover additiona...
Read More
Cracking Health Services Award’s Employee Pay Rate Progression
Cracking Health Services Award’s Employee Pay Rate Progression
What is Health Services Award Pay Point Progression? Health Services Award Pay Point Progression refers to the process by which healthcare workers...
Read More
Updated Aged Care Award Pay Guide
Updated Aged Care Award Pay Guide
What is the Award Wage for Aged Care? The Award Wage for Aged Care workers in Australia varies depending on the specific role and classification. ...
Read More

Leave a Reply

Your email address will not be published. Required fields are marked *