Food, Beverage and Tobacco Manufacturing Award Guide [MA000073]

Food, Beverage and Tobacco Manufacturing Award Guide  [MA000073]

Table of content

  1. What is the Food, Beverage and Tobacco Manufacturing Award?
  2. Who is entitled to the Food, Beverage and Tobacco Manufacturing Award?
  3. How is the shiftwork arranged in the Food, Beverage and Tobacco Manufacturing Award?
  4. How are wages and allowances calculated in the Food, Beverage and Tobacco Manufacturing Award?
  5. How is the leave managed in the Food, Beverage and Tobacco Manufacturing Award?
  6. How to keep in compliance with the Food, Beverage and Tobacco Manufacturing Award?
  7. How can Workstem assist you?

This article provides guidelines on the Australian  food, beverage, and tobacco manufacturing industry Award package. For more information on this award, please refer to the Food, Beverage and Tobacco Manufacturing Award Guide  [MA000073].

What is the Food, Beverage and Tobacco Manufacturing Award?

The Food, Beverage, and Tobacco Manufacturing Award is a legal framework that outlines the minimum employment standards and conditions for employees working in the food, beverage, and tobacco manufacturing industry in Australia. It sets out various entitlements such as minimum wages, working hours, overtime, annual leave, sick leave, and other benefits for employees in different roles within this industry.

The award applies to employers and employees who fall within the classifications defined by the award. The food, beverage, and tobacco manufacturing industry encompasses activities such as food preparation, cooking, beverage production, and tobacco manufacturing.

The aim of the award is to ensure that employees in this industry are treated fairly and receive reasonable pay and working conditions for their contributions.

Who is entitled to the Food, Beverage and Tobacco Manufacturing Award?

Coverage

The Food and Beverage Manufacturing Award covers employers in the food, beverage and tobacco manufacturing industry and their employees who fit within the classifications of the award.

The food, beverage and tobacco manufacturing industry means:

  • preparing
  • cooking
  • baking
  • blending
  • brewing
  • fermenting
  • preserving
  • filleting
  • gutting
  • freezing
  • milling of food, beverage and tobacco products, including stock feed and pet food.

It also includes related activities such as:

  • receiving, storing and handling of ingredients and raw materials used to make food, beverage and tobacco products
  • bottling, canning, packaging, labelling, palletising, storing, packing, despatching and preparing the products for sale
  • cleaning and sanitising of tools, equipment and machinery used to make the products.

Examples of employees and employers covered by the Food and Beverage Manufacturing Award include:

  • food processers
  • qualified tradespersons in food processing
  • producers of bottled water intended for human consumption
  • production workers.

The Food and Beverage Manufacturing Award also covers labour hire businesses and their employees who are placed within the food, beverage and tobacco industry.

Types of employment

An employee covered by this award must be one of the following:

  • A full-time employee, unless specified otherwise, refers to any employee who is not classified as a part-time or casual employee within this award.
  • A part-time employee must work a minimum of 4 consecutive hours per day or shift. However, under certain circumstances, a part-time employee may request and the employer may agree to an engagement for no less than 3 consecutive hours per day or shift. If such an agreement is reached, the employer must record it on the employee’s time and wages record.
  • A casual employee who is engaged on an irregular or intermittent basis, with no expectation of ongoing employment.

The Award does not generally cover

The following employers and employees are not covered by the Food and Beverage Manufacturing Award:

  • retail bakeries
  • sales representatives or salespersons
  • clerical and administrative workers
  • mechanical fitters.

The Food and Beverage Manufacturing Award doesn’t cover employers and employees when they are covered by one of the following awards:

  • Clerks Award
  • Fast Food Award
  • Retail Award
  • Horticulture Award
  • Hospitality Award
  • Manufacturing Award
  • Meat Award
  • Poultry Award
  • Seafood Award
  • Wine Award.

How is the shiftwork arranged in the Food, Beverage and Tobacco Manufacturing Award?

Hours of Work

Ordinary hours of work

Dayworkers

  • Average of 38 hours per week, not exceeding 152 hours in 28 days.
  • Maximum 8 hours per day, unless otherwise agreed in accordance
  • Can be worked on any day of the week, including weekends, subject to agreement between the employer and the majority of employees or an individual employee.
  • Monday to Sunday between 6.00am and 6.00pm(May be moved up to one hour forward or one hour back by agreement)
  • Work performed outside the designated spread of hours is considered overtime and should be paid accordingly.
  • Work done prior to the spread of hours for plant preparation is included in the 38 ordinary hours of work.

Continuous shiftwork

  • At the discretion of the employer, ordinary hours for continuous shiftworkers must average 38 hours per week, inclusive of meal breaks.
  • The total ordinary hours must not exceed 152 hours in 28 consecutive days.
  • Each shift must not exceed 8 hours, unless otherwise agreed.

Non-continuous shiftworkers

  • Average of 38 hours per week, not exceeding 152 hours in 28 consecutive days.
  • Maximum 8 hours per shift, unless agreed otherwise.
  • By agreement, a roster system can extend the period beyond 28 consecutive days but not exceeding 12 months, while maintaining a weekly average of 38 ordinary hours.
  • Continuous work, except for meal breaks, at the discretion of the employer.
  • Except at changeover of shifts, an employee must not be required to work more than one shift in each 24 hours.

Meal breaks

An employee should not work for more than 5 hours without a meal break, unless certain circumstances apply.

  • If canteen or other facilities are limited, meal breaks can be staggered, allowing employees to work for up to 6 hours without a break.
  • By agreement, employees can work up to 6 hours without a meal break.

Employees must be paid for all work done during meal hours and until a meal break is taken, unless an alternative arrangement is agreed upon between the employer and the employee.

Unpaid meal break

Ordinary hourly rate

Saturday or Sunday

200%

Shift with a 12.5% loading

162.5%

Shift with a 15% loading

165%

Shift with a 30% loading

180%

Other circumstances not mentioned above

150%

How are wages and allowances calculated in the Food, Beverage and Tobacco Manufacturing Award?

Minimum rates

  •   Adult employee

Classification level

Minimum weekly rate
(full-time employee)

Minimum hourly rate

$

Level 1

859.30 22.61
Level 2 882.80

23.23

Level 3

914.90 24.08

Level 4

945.00 24.87
Level 5 995.00

26.18

Level 6 1026.20

27.01

  • Unapprenticed junior 

Age

% of Level 2

Under 16 years

60%
At 16 years

70%

At 17 years

80%

At 18 years

90%

  • Apprentice

The minimum rates for an adult apprentice who started their apprenticeship before 1 January 2014 are outlined in the following table:

Relevant attribute of the person at the time of entering into a training agreement as an apprentice

Stage of apprenticeship Completed
Year 10 or less
Completed
Year 11
Completed
Year 12
Adult
(21 years or over)

Minimum weekly rate($)

Stage 1

417.90 11.00 477.60 12.57 503.30 13.24 756.20 19.90

Stage 2

547.25 14.40 547.25 14.40 585.70 15.41 859.30

22.61

Stage 3 746.25 19.64 746.25 19.64 746.25 19.64 882.80

23.23

Stage 4 875.60 23.04 875.60 23.04 914.90 24.08 914.90

24.08

The minimum rates for an adult apprentice who started their apprenticeship on or after 1 January 2014 are provided in the following table:

Relevant attribute of the person at the time of entering into a training agreement as an apprentice

Stage of apprenticeship

Has not completed Year 12 Has completed Year 12

Adult apprentice aged 21+

% of Level 5 Min weekly rate Min hourly rate % of Level 5 Min weekly rate Min hourly rate Wage rate Min weekly rate

Min hourly rate

$ $ $

Stage 1

50% 497.50 13.09 55% 547.25 14.40 80% of Level 5 796.00 20.95
Stage 2 60% 597.00 15.71 65% 646.75 17.02 Level 1 rate 859.30

22.61

Stage 3 75% 746.25 19.64 75% 746.25 19.64 Level 2 rate 882.80

23.23

Stage 4 88% 875.60 23.04 88% 875.60 23.04 Level 3 rate 914.90

24.08

Overtime rates

The overtime rate payable to an employee depends on the time at which the overtime is worked:

Type of Overtime

Overtime rate

(% of ordinary hourly rate)

Minimum Payment

Sunday work

200%

Minimum payment of 3 hours

Non-continuous shiftworker

On any day of the week – First 3 hours

150% /
On any day of the week – After 3 hours 200%

/

Public Holiday

250% Minimum payment of 3 hours

Continuous shiftworker

/

200%

/

Public Holiday 200%

Minimum payment of 3 hours

Day worker

Saturday work – First 3 hours

150% /

Saturday work – After 3 hours

200%

Minimum payment of 4 hours, except when continuous with overtime commenced on the previous day

Public Holiday 250%

Minimum payment of 3 hours

Unrelieved Shiftwork on Rostered Day Off

/ 200%

/

‍Penalty rates

When an employee works ordinary hours on the following days, they are entitled to the following penalty rates:

  •   Full-time and part-time employees other than shiftworkers

Ordinary hours

Saturday Sunday Public holiday

% of ordinary hourly rate

100% 150% 200%

250%

  • Full-time and part-time shiftworkers

All shiftworkers

Other than continuous shiftworkers Continuous shiftworkers
Early morning shift Afternoon shift or night shift Afternoon or night shift not continuing Permanent night shift Saturday Sunday Public holiday

Sunday & Public holiday

First 3 hours

After 3 hours

% of ordinary hourly rate

112.5% 115% 150% 200% 130% 150% 200% 250%

200%

  •   Casual employees other than shiftworkers

Ordinary hours

Saturday Sunday Public holiday

% of casual ordinary hourly rate

100% 150% 200%

250%

  • Casual shiftworkers
All shiftworkers Other than continuous shiftworkers

Continuous shiftworkers

Early morning shift

Afternoon shift or night shift Afternoon or night shift not continuing Permanent night shift Saturday Sunday Public holiday

Sunday & Public holiday

First 3 hours

After 3 hours

% of casual ordinary hourly rate

112.5% 115% 150% 200% 130% 150% 200% 250%

200%

*To learn more about the Afternoon or night shift not continuing, please refer to Fair Work.

**Rates in table are calculated based on the minimum hourly rate.

Allowance

Leading Hands Allowance 

In Charge of

$ Per Week Extra
3-10 employees

43.54

11-20 Employees

65.03

More than 20 employees

82.78

Heavy Vehicle Driving Allowance

Vehicle Size 

$ Per Hour Extra

over 3 tonnes GVW and up to 4.5 tonnes GVW

0.16

over 4.5 tonnes GVW and up to 14.95 tonnes GVW

1.31
over 14.95 tonnes GVW

1.73

a semi-trailer

3.12

Hot Places Allowance

Temperature

$ Per hour extra

Between 46°C and 54°C

0.76

Above 54°C

0.99

Other Allowance

Cold places allowance( below 0°C)

$0.73 per hour extra

Wet places allowance

$0.76 per hour extra
Confined spaces allowance

$0.99 per hour extra

Dirty or dusty work allowance

$0.76 per hour extra

Fumigation gas allowance

$10.00 per day extra
Boiler attendants allowance

$22.38 per week extra

  First aid allowance

      $0.73 per hour extra

Expense-related allowances

Meal allowance

$16.81 on each occasion

Vehicle allowance

$0.95 per kilometre travelled on agreement

Travelling time payment

  • 150% of ordinary hourly rate on Sundays and Public Holidays
  • Max 12 hours every 24 or 8 if sleeping berth is provided

Expenses

Reasonable expenses incurred when travelling including $16.81 for each meal

How is the leave managed in the Food, Beverage and Tobacco Manufacturing Award?

In the  food, beverage, and tobacco manufacturing industry Award, leave entitlements for employees are determined by the National Employment Standards (NES) and the classification of the employee.

Annual leave

Annual leave is provided for in the NES. Annual leave does not apply to a casual employee.

  •  Conversion to hourly entitlement – the employer may agree with the majority of employees to convert the annual leave entitlement to an hourly entitlement for administrative ease. The conversion is based on a certain number of hours, such as 152 hours for a full-time employee entitled to 4 weeks of annual leave or 190 hours for a shiftworker.
  • Annual leave loading – for an employee who would have worked on day work only or worked on shiftwork had they not been on leave, the additional payment is the greater of:

17.5% of the minimum hourly rate for the employee’s ordinary hours of work in the period; or

The minimum hourly rate for the employee’s ordinary hours of work in the period inclusive of shift weekend penalty rates as specified.

Personal Leave

Personal/carer’s leave and compassionate leave are provided for in the NES.

If an employee is terminated by their employer and re-engaged within 6 months, their unclaimed balance of paid personal/carer’s leave continues from the date of re-engagement.

Public holidays

Public holiday entitlements are provided for in the NES.

An employer must pay an employee who works on a public holiday or on a day that is substituted for a public holiday at the public holiday penalty rate set out in penalty rates.

How to keep in compliance with the Food, Beverage and Tobacco Manufacturing Award?

To comply with the  food, beverage, and tobacco manufacturing industry Award in Australia, businesses in the  food, beverage, and tobacco manufacturing industry can follow:

Minimum wage

Employers must pay their employees at least the minimum wage set by the Fair Work Commission.

Superannuation

Employers are obligated to make superannuation contributions on behalf of their eligible employees, which includes calculating and paying the correct amount on time.

Taxation

Businesses must accurately calculate and withhold income tax from employee wages, regularly passing the amount to the ATO.

‍Record-keeping 

Employers are required to maintain comprehensive records relating to employee pay, taxes, superannuation and entitlements

How can Workstem assist you?

Workstem is a one-stop payroll & HR platform with an award interpretation module and customised attendance formulas.It ensures that employers in the food, beverage, and tobacco manufacturing industry stay compliant with Fair Work regulations.

The platform simplifies HR processes, reduces administrative burdens, and offers a user-friendly interface for small businesses and large enterprises alike.

Experience the benefits of Workstem for yourself!

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