This article serves as a comprehensive guide to understanding the pay rates within the Australian Fast Food Industry Award, specifically focusing on McDonald’s 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 Industry Award Pay Rates ?
The Fast Food Industry 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 McDonald’s
What are the pay rates ?
McDonald’s Crew Members in Australia earn an average hourly pay of $24.92, which is 24% below the national average.
How is the shiftwork arranged ?
Rostering
- Full-time employees must receive an average of 38 hours per week.
- Part-time employees work less than 38 hours per week but have reasonably predictable hours and a regular pattern of work agreed upon in writing.
- Casual employees are required to work at least 3 hours per shift.
Note: Any changes to the agreed-upon hours must be communicated in writing before they occur.
Breaks
|
Hours worked |
Paid rest break | Unpaid meal break |
|
Less than 4 hours |
No rest break | No meal break |
|
4 hours but less than 5 hours |
One 10 minute rest break |
No meal break |
| 5 hours but less than 9 hours | One 10 minute rest break |
One 30 – 60 minute meal break |
| 9 hours or more | One or two 10 minute rest break |
One or two minute meal breaks |
*Second rest break must be provided if only one meal break given.
**Employees cannot work more than 5 hours without a meal break.
How are wages and allowances calculated ?
Overtime
Permanent employees are eligible for overtime rates if they work:
- More than 38 hours per week or an average of 38 hours per week over a 4-week period.
- More than 5 days per week, or more than 6 days if they worked 4 days the following week.
- More than 11 hours in any given day.
- Before or after their rostered shift.
- More than their agreed-upon hours for part-time employees.
Casual employees are eligible for overtime rates if they work:
- More than 38 hours per week or more than the agreed hours if they have a roster, averaged over the roster cycle.
- More than 11 hours in any given day.
Penalty rates
| Full-time/part-time | Casual(incl.25% loading) | |
| Mon-Fri 10pm-midnight | 10% |
35% |
|
Mon-Fri Midnight-6am |
15% | 40% |
|
Saturday |
25% | 50% |
| Sunday – Level 1 | 25% |
50% |
| Sunday – Level 2&3 | 50% |
75% |
|
Public Holiday |
225% | 250% |
|
Overtime for first 2 hours |
150% |
175% |
| Overtime after 2 hours | 200% |
225% |
Allowance
|
Transport Allowance (delivery drivers) |
|
|
Transport Allowance (in-store employees) |
|
|
Laundry Allowance |
|
|
Meal Allowance |
|
*Employers should provide uniforms and cover the cost of laundering for employees. Compensation for laundering should be $6.25 per week for full-time workers and $1.25 for part-time and casual employees.
Source: The Union for McDonald’s workers
How is the leave managed ?
Personal Leave
- Full-time employees accrue 10 days of paid personal leave each year.
- Part-time employees are entitled to 10 days of personal leave, which accrues on a pro-rata basis based on their hours of work.
- Casual employees do not have paid personal leave but can take 48 hours of unpaid carers leave in case they need to care for someone who is sick or requires emergency care.
Paid Annual Leave
- Full-time employees accrue 4 weeks of paid annual leave per year.
- Part-time employees accrue annual leave on a pro-rata basis, depending on their hours of work.
- Casual employees are not entitled to paid annual leave.
When taking annual leave, employees receive either a 17.5% annual leave loading or the weekend penalty rates, whichever is higher. It is possible to apply for annual leave in advance and cash out 2 weeks of leave per year under certain circumstances.
Additionally, all employees, regardless of their employment status, are entitled to 5 days of unpaid leave to deal with the impact of family and domestic violence.
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