Fitness Industry Award 2020 - A Simple Guide for Your Business

Apr 13

Who Does This Award Cover?

Who it’s for The award covers employees on the "front lines" of your facility. This includes fitness instructors, personal trainers, pool lifeguards, and reception or counter employees.

Who it’s not for It is vital to identify who falls outside this scope. This award does not cover businesses governed by the Local Government Industry Award 2020 or the Registered and Licensed Clubs Award 2020. Additionally, it generally does not cover administrative or operational support staff who work outside of physical fitness or aquatic centres (such as a remote head-office bookkeeper).

This award applies to employers and employees across Australia engaged in the fitness industry. This includes, but is not limited to:

Fitness centres and group fitness organisations
Aquatic centres and swimming schools
Martial arts and dance centres
Gymnastic services and indoor sports centres
Weight loss and control centres
Tennis clubs and coaching services

Employment Basics: Full-Time, Part-Time, and Casual

How you engage your employees determines your long term liabilities. The award defines three primary categories:

Full-Time Employees These employees are engaged to work an average of 38 hours per week.
Part-Time Employees Part-time employees work fewer than 38 hours per week and have reasonably predictable hours. Crucially, you must agree with them in writing at the start of their employment on a regular pattern of work, including which days they will work and their specific start and finish times. They receive the same entitlements as full-time employees (like sick and annual leave) on a pro-rata basis.
Casual Employees Casuals are employed with no firm advance commitment to ongoing work. To compensate for the lack of paid leave, they receive a "loading" which is an extra percentage added to their base rate.
NOTE : For Monday to Friday work, this loading is 25%. For Saturday, Sunday or a public holiday, a casual employee must be paid 30% loading on top of their minimum hourly rate.

Managing Hours and Rosters

The award defines "ordinary hours" as the window in which employees can be rostered without triggering overtime.

Monday to Friday: 5:00 am to 11:00 pm
Saturday and Sunday: 6:00 am to 9:00 pm

The Overtime Distinction: Any work performed outside these windows (or in excess of 10 hours per day/average of 38 hours per week) is automatically classified as overtime, regardless of whether the employee has worked a full week.

Minimum Engagement

To ensure fairness, the award sets a "minimum call-out" for shifts.

Most employees: Must be paid for at least 3 hours per shift.
Specific Trainers/Coaches: Level 2 through 5 instructors, trainers, or tennis coaches may be engaged for a minimum of 1 hour.

The Right to Disconnect

Employees now have a legal right to refuse to monitor or respond to work contact outside of hours unless that refusal is unreasonable. This right began for larger businesses on 26 August 2024. Note - you can still contact employees for emergency roster changes.

Taking Breaks: Rest and Meals

Well rested employees are the key to safety and member retention. The award simplifies breaks as follows:

Unpaid Meal Break: 30 to 60 minutes, given no later than 5 hours after starting.
Paid Rest Break: One 10-minute paid break between starting and the meal break, and another between the meal break and finishing. (Casuals working 3 hours or less do not receive this).

Understanding Pay, Penalties, and Allowances

While base rates apply to ordinary weekday hours, "Penalty Rates" provide extra pay for work during less social times.

Key Pay Boosts

Saturday: Permanent employees receive 125% of their minimum rate.
Sunday: Permanent employees receive 150%. For casuals, the standard 25% loading is replaced by a 30% loading (not added to it).
Public Holidays: Permanent employees receive 250%. For casuals, the 25% loading is also replaced by a 30% loading.

Allowances

These are payments for specific responsibilities. The most common in gyms are:

First Aid Allowance: A daily rate paid if aa employee is the designated first aider on the roster.
Vehicle Allowance: $0.98 per km for cars or $0.32 per km for motorcycles if an employee uses their own vehicle for work duties.
Leading Hand Allowance: This is a tiered weekly payment for employees supervising others. The amount increases based on the number of employees supervised: 1–5 employees, 6–10 employees, or more than 10 employees.

Why Classification Matters

Assigning every employee a "Level" (1 through 7) is the bedrock of payroll compliance. In the fitness industry, two "A" levels are particularly critical to get right:

Level 3A: Specifically for staff holding an AQF Certificate III (or equivalent) in Fitness or Sport Coaching who are utilizing those skills.
Level 4A: For staff holding an AQF Certificate IV or Diploma who are utilizing those advanced skills.

If a trainer completes a Certificate IV, they generally move to Level 4A. Failure to update their classification once they begin using those new skills is a common source of underpayment claims.

Common Mistakes Employers Make

Informal Part-Time Variations: If you change a part-time employee's hours for a week, that variation must be in writing. Verbal agreements leave you vulnerable.
Broken Shift Violations: You can only break a shift into two parts, and the total span (from the start of the first part to the end of the second) cannot exceed 12 hours.
Incorrect Classification: Keeping a Cert IV qualified trainer on a Level 3 rate because they "just do the same classes." If they use their skills, they must be paid at the correct level (4A).
Minimum Engagement Errors: Sending a casual home after 90 minutes because the gym is quiet but only paying them for 90 minutes. Unless they are a Level 2-5 trainer, you must pay the 3-hour minimum.

Practical Tips for Compliance

Accessibility: Keep a copy of the Award and the National Employment Standards (NES) accessible—either on a staff noticeboard or a shared digital drive.
Written Records: Always ensure employment contracts and part-time rosters are signed and filed. Documentation is your best defense against Fair Work audits.
Annual Qualification Audit: Once a year, ask your team for copies of any new certifications. This ensures your classifications remain accurate as your team grows.
Roster Review: Check that your roster doesn't inadvertently schedule "broken shifts" that exceed the 12-hour total span.

While the Fitness Industry Award 2020 may seem complex, it is ultimately a roadmap for a fair and professional workplace. By focusing on clear communication, maintaining up to date written records, and respecting the classification levels of your qualified employees, you solve 90% of compliance worries before they even begin. A compliant business is a stable business, allowing you to focus your energy on what truly matters: the health and fitness of your community.

Modern Awards are detailed and complex. The information above forms part of our Understanding Your Award series and provides a high-level overview only. Further obligations may apply depending on your business and workforce. This Information is current at the time of publication. Workplace laws and awards may change.

If this raised questions for your business, FiveSeven can help review your approach and identify any gaps before they become issues.

The information above forms part of our Understanding Your Award series and provides a high-level overview only. Further obligations may apply depending on your business and workforce. This Information is current at the time of publication Jan 2026. Workplace laws and awards may change.