Manufacturing and Associated Industries and Occupations Award 2020 - A Simple Guide for Your Business

You might not traditionally think of your business as "manufacturing," but this Award covers a surprisingly wide range of products. If your business produces or handles any of the following, this guide is for you:

• Metal & Engineering

• Transport & Equipment

• Precision Goods

• Technical & Medical

• Household & Industrial

• Textiles & Leather

 Common Roles: Who is covered Covered?

Most of your employees will fall into one of three main "vocational fields." Correctly identifying these helps you set the right pay from day one:

 • Trade Field: These are your qualified tradespeople, such as mechanics or fabricators, who hold trade certificates in engineering streams like Mechanical, Electrical, or Fabrication (which includes specialised work like metal polishing and electroplating).

• Technical Field: This is a high-risk area for misclassification. It includes staff performing quality control, laboratory work, design and development (prototypes and specifications), production planning, and draughting.

• Engineering and Manufacturing Field: This covers vital production work that does not require a trade certificate, such as handlers, packers, and store or warehouse staff.

The Basics of Work Hours and Minimum Shifts

For full-time employees, the standard work week averages 38 hours. For day workers, these hours are generally performed within a "spread of hours" between 6:00 am and 6:00 pm, Monday to Friday.

Pro-Tip: If your business needs an earlier start or a later finish, you can agree with your employees to move this spread one hour forward or back (e.g., 5:00 am to 5:00 pm).

Minimum Engagement Rule.

You must remember that part-time and casual employees must be paid for at least 4 consecutive hours per shift. 

There is an exception allowing for a 3-hour shift if the employee requests it for personal reasons, but you must record this agreement in the employee's time and wages records to remain compliant.

Breaks and Rest Periods

 To keep your team safe and productive, use these "Rules of Thumb":

• Meal Breaks: Employees should not work more than 5 hours without an unpaid meal break of at least 20 minutes. For operational continuity, you can push this to 6 hours if the employee agrees.

• Rest Periods: Technical staff (like those in design or quality control) are entitled to a paid 10-minute morning tea break.

Shiftwork and the "Successive Shift" Trap

In this Award - shiftwork is defined by when a shift ends.

Afternoon shifts finish after 6:00 pm but before midnight; Night shifts finish after midnight but before 8:00 am.

While shift workers usually receive a 15% loading (or 30% for permanent night shifts), there is a common pitfall regarding "Non-Successive Shifts": 

If an afternoon or night shift does not continue for at least five successive shifts, the employee is entitled to a much higher rate: 150% for the first three hours and 200% for the rest of the shift.

Tip: Avoid using ad-hoc, one off night shifts unless you are prepared to pay these higher overtime-style rates.

Pay, Penalties, and All-Purpose Allowances

 All-Purpose Allowances

An "All-Purpose" allowance, such as a Leading Hand or Tool allowance, is a payment included in the employee's base rate when you calculate their penalties, loadings, and leave pay.

Casual Loading

Casuals receive a 25% loading. Importantly, if an all-purpose allowance applies, you must add it to the base rate before calculating the 25% loading.

Minimum Pay and Penalties

Pay is based on levels C14 to C1. Level C10 is the benchmark for a qualified tradesperson.

When your team works at "inconvenient" times, higher rates apply:

• Saturday: 150% (Time and a half).

• Sunday: 200% (Double time).

• Public Holidays: 250% (Double time and a half).

 Common Compliance Pitfalls for Employers

Record-Keeping Errors: Failing to document a 3 hour shift request. Pro-Tip: Use a simple form for employees to sign when they request shorter shifts for personal reasons.

Leave Loading Miscalculations: Many managers pay 17.5% leave loading automatically. However, the rule is that employees get 17.5% OR the weekend penalty rates they would have worked, whichever is greater.

The Right to Disconnect: Employees now have a legal right to refuse contact outside of work hours unless the refusal is unreasonable. Pro-Tip: You can still contact staff for "recalls to work" (unforeseen emergencies) but avoid routine check-ins when they are off the clock.

All-Purpose Overtime: Forgetting to include leading hand or tool allowances when calculating overtime rates. Always add these to the hourly rate first.

Practical Compliance Tips

Accessibility: You are legally required to keep a copy of the Award and the National Employment Standards (NES) accessible to all staff, either on a noticeboard or digitally.

Yearly Audits: Review classifications annually. If a worker has gained new skills or a qualification, they may need to move from a C12 to a C10.

Written Agreements: Never rely on "handshake deals" for part-time hours or flexible arrangements.

If it isn't in writing, it didn't happen in the eyes of the law.

Compliance doesn’t have to be complicated; it starts with getting the basics of classification and minimum engagement right. 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.