KFC Case Study : Discovering Fast Food Award Pay Rates

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

How are wages and allowances calculated ?

Minimum rates

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

Permanent

Casual

Junior rates

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:

Public holiday penalty rates

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

Allowance

*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.

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