Woolworths Case Study: Uncovering Retail Award Pay Rates

Woolworths Case Study: Uncovering Retail Award Pay Rates

Table of content

  1. What is the Retail Award Pay Rates ?
  2. Case study of Woolworths
  3. How can Workstem assist you ?

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

What is the Retail Award Pay Rates ?

The Retail Award Pay Rates are specific wage rates and conditions set by the Fair Work Commission in Australia for employees in the retail industry. These rates determine minimum wages, allowances, penalty rates, and other entitlements for workers within the retail sector. Adhering to the Retail Award Pay Rates is essential to ensure fair compensation and compliance with employment laws.

Learn more: General Retail Industry Award Guide [MA000004]

Case study of Woolworths

What are the pay rates ?

Woolworths pay rates vary based on job positions. Hourly rates range from AU$15.59 to AU$27.68, with Order Selectors earning the highest average rate of AU$32.80 per hour and Deli Clerks earning the lowest average rate of AU$16.59 per hour.

How is the shiftwork arranged ?

Hours of work

Monday to Friday

7:00am to 11:00pm

Saturday

7:00am to 11:00pm

Sunday

9:00am to 11:00pm

Breaks

Time Worked Per Shift

Rest Break (Paid) Meal Break (Unpaid)
Less than 4 hours No rest break

No meal break

4 hours and up to and including 5 hours

1 x 15-minute rest break No meal break

More than 5 hours but less than 7 hours

1 x 15-minute rest break 1 x 30 to 60 minutes as agreed
7 hours or more, but less than 10 hours 2 x 15-minute rest breaks

1 x 30 to 60 minutes as agreed

10 hours or more 2 x 15-minute rest breaks

2 x 30 to 60 minutes as agreed

How are wages and allowances calculated ?

Minimum rates

Effective immediately after this Agreement commences, the following base pay rates apply:

Classification Base Rate of Pay (Hourly)

Weekly Wage Rate Equivalent (Base Rate of Pay x 38 Hours)

Retail Employee Level 1

$21.05 $799.90
Retail Employee Level 2 $21.55

$818.90

Retail Employee Level 3

$21.89 $831.82

Retail Employee Level 4

$22.32 $848.16
Retail Employee Level 5 $23.23

$882.74

Retail Employee Level 6 $23.70

$900.60

Tradesperson Level 4

$23.20 $881.60

Tradesperson Level 5

$23.59 $896.42

Clerical Assistant Level 1

$21.05

$799.90

Clerical Officer Level 2 $22.20

$843.60

Clerical Officer Level 3 $23.29

$885.02

Overtime rates

  • Full-time and part-time

Day

First 3 hours of overtime % of ordinary rate Subsequent hours of overtime % of ordinary rate

Monday to Saturday inclusive

150% 200%
Sunday 200%

200%

Public Holidays 250%

250%

  • Casual (includes Casual Loading)
Day First 3 hours of overtime % of ordinary rate

Subsequent hours of overtime % of ordinary rate

Monday to Saturday inclusive

175% 225%

Sunday

225%

225%

Public Holidays 275%

275%

Penalty Rates

Days of the Week Hours Full-time and part-time rates of pay

Casual rates of pay (penalty rates are inclusive of 25% casual loading)

Monday, Tuesday, Wednesday, Thursday, Friday 7:00am to 6:00pm Base rate

Base rate +25%

Monday, Tuesday, Wednesday, Thursday, Friday

6:00pm to 11:00pm Base rate +25%

From 7 January 2019 to 30 September 2019: Base rate +30%

From 1 October 2019 to 29 February 2020: Base rate + 35%

From 1 March 2020 to 30 September 2020: Base rate + 40%

From 1 October 2020 to 28 February 2021 Base rate + 45%

From 1 March 2021 Base rate + 50%

Saturday

7:00am to 11:00pm Base rate + 25%

From 7 January 2019 to 30 September 2019: Base rate + 40%

From 1 October 2019 to 29 February 2020: Base rate + 45%

From 1 March 2020: Base rate + 50%

Monday through Saturday

11:00pm to 7:00am First 3 hours: Base rate + 50%

Additional hours in this span over 3 hours: Base rate + 100%

First 3 hours: Base rate + 75%

Additional hours in this span over 3 hours: Base rate + 125%

Sunday Midnight to 9.00am Base rate + 100%

Base rate + 125%

9:00am to 11:00pm

From 1 January 2019 to 30 June 2019: Base rate + 80%

From 1 July 2019 to 30 June 2020: Base rate + 65%

From 1 July 2020: Base rate + 50%

From 7 January 2019 to 30 June 2019: Base rate + 85%

From 1 July 2019: Base rate + 75%

11:00pm to midnight Base rate + 100%

Base rate + 125%

Public Holiday Base rate + 125%

Base rate + 150% (inclusive of casual loading)

Allowance

Allowance Application
Special clothing

allowance

  • Woolworths provides and maintains necessary protective gear for team members, such as gum boots, white coats, hats, sunscreen lotion, insulated gloves, and insulated parkas.
  • Team members will receive training on the appropriate use of protective gear.
  • If Woolworths requires team members to wear special clothing like uniforms or dresses, the company will reimburse the cost of purchasing and replacing them when necessary, except when the clothing has already been supplied or paid for by Woolworths.
  • Woolworths ensures that team members are not required to wear revealing or offensive clothing.
  • Team members required to launder special uniforms or clothing will receive the following allowances:
    • Full-time team members: $6.25 per week.
    • Part-time or casual team members: $1.25 per shift.
Cold work allowance
  • Fridge Allowance: Woolworths team members who primarily perform tasks in cold chambers or are responsible for restocking refrigerated storage areas, such as dairy cases or freezer cabinets, will receive a cold work allowance of $0.29 per hour while engaged in such duties.
  • Freezer Allowance: In addition to the Fridge Allowance mentioned above, Woolworths team members who are required to work in a cold chamber with temperatures below 0°C will receive a Freezer Allowance of $0.44 per hour (a total of $0.73 per hour) while engaged in tasks such as cleaning, de-frosting, or rearranging stock within a back-of-house freezer room.
First aid allowance Where a team member holds an appropriate first aid qualification and is appointed by Woolworths to perform first aid duty they will be paid an allowance of $10.89 each week.
Transport allowance Where Woolworths asks a team member to use their own motor vehicle in the performance of their duties, the team member will be paid an allowance of $0.79 per kilometre.
Recall allowance
  • Call Back to Work: If a Woolworths team member is called back to work before or after completing their normal rostered shift or on a non-working day due to unforeseen emergencies or tasks like resetting an alarm, they will be paid for all hours worked at the appropriate rate.
  • Minimum Payment: On each occasion of being called back to work, the team member will receive a minimum payment of 3 hours.
  • Calculation of Time Worked: The time worked will be calculated from the moment the team member leaves home until they return home, taking the most direct route.
  • Providing Evidence: Woolworths may require team members to provide evidence of the time taken for the call back to work.
Higher duties allowance Team members engaged for more than 2 hours during 1 day or shift on duties carrying a higher rate than their ordinary classification are to be paid the higher rate for such day or shift.

If engaged for 2 hours or less during 1 day or shift on duties carrying a higher rate than their ordinary classification, the team member is to be paid the higher rate for the time they worked on those duties only.

Liquor licence allowance A team member who is required by law or by Woolworths to hold a liquor licence will be paid an extra $25.96 per week.
Broken Hill allowance A team member in the County of Yancowinna in New South Wales (Broken Hill) will in addition to all other payments be paid an hourly allowance for the exigencies of working in Broken Hill of $0.94.

Source: Woolworths Supermarkets Agreement 2018

How is the leave managed ?

Annual leave

Annual leave is subject to the National Employment Standards (NES) unless stated otherwise in this Agreement. Employees accumulate annual leave gradually throughout the year based on the following provisions:

Full-time team members

4 weeks of paid annual leave for each year of continuous service.

Part-time team members

4 weeks of annual leave for each year of continuous service calculated on a pro-rata basis based on their ordinary hours of work.

For example, a part-time team member who works 20 hours per week for  1 year will accumulate 80 hours of annual leave that year – the equivalent of 4 weeks work for that team member.

Casual team members

Not entitled to annual leave. Casual team members receive a 25% casual loading in lieu of paid leave entitlements.

Public holidays

Public holiday has the same meaning as in the NES.

If the team member WORKS on the public holiday:

If the team member is ABSENT on the public holiday:

Full-time or part-time teammember whose standard roster WOULD include the public holidayas a working day:

Hours worked are paid at public holiday penalty rates OR team member can request TOIL or an equivalent day of annual leave instead

Day off is paid at ordinary base rate of pay for the rostered working day as per the team member’s standard roster (without penalty rates or loadings)

Full-time or part-time team member whose standard roster would NOT include the public holiday as a working day:

Hours worked are paid at public holiday penalty rates OR team member can request TOIL or an equivalent day of annual leave instead  

Unpaid

Casual team member(does not have a standard roster) Hours worked are paid at public holiday penalty rates

Unpaid

How can Workstem assist you ?

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