Pharmacy Industry Award 2020 - A Simple Guide for Your Business

Apr 13

Is Your Business Covered?

Before applying these rules, you must confirm your business qualifies as a Community Pharmacy. This applies if you dispense prescriptions or sell medicines to the general public from your premises. Crucially, the business cannot be owned by a hospital or other public institution, nor can it be operated by the government.

Common Roles in the Pharmacy

This Award uses specific classifications to determine minimum pay. It is best to think of these in terms of their responsibilities and training:

Pharmacy Assistants (Levels 1–4): These roles progress from entry level employees to experienced supervisors. Note that Junior Rates only apply to employees at Levels 1 and 2; those at Level 3 or 4 must be paid full adult rates regardless of their age.
Students and Interns: This includes pharmacy students currently in an approved course and interns completing their required clinical training.
Pharmacists: This group includes registered pharmacists and experienced pharmacists with over four years of experience.
Pharmacist in Charge: A pharmacist who is responsible for the day-to-day supervision and functioning of the pharmacy.
Pharmacist Manager: A senior role responsible to the owner for all aspects of the business.

Hours of Work and the "Minimum Engagement" Rule

A standard full-time work week is 38 hours. These "Ordinary Hours" can be worked between 7:00 am and midnight, though an employee cannot work more than 12 hours in a single day.

Most part-time and casual employees must be given at least 3 hours of work for every shift. However, there is a 2 hour minimum for secondary school students working between 3:00 pm and 6:30 pm on school days. This student exception requires parent agreement and supervision by a Level 3 or higher staff member.

Taking Breaks: Rest and Meals

Providing regular breaks is a legal requirement that keeps your team safe and focused. The entitlements depend on the total hours worked in a day:

4 to 5 hours worked: One 10-minute paid rest break.
5 to 7.6 hours worked: One 10-minute paid rest break and one unpaid meal break (30–60 minutes).
More than 7.6 hours worked: Two 10-minute paid rest breaks and one unpaid meal break.

There are strict rules about when these breaks occur. A 10-minute rest break cannot be taken during the first hour of a shift or during the first hour after an unpaid meal break ends.

Pay, Penalties, and Allowances Made Simple

Minimum rates are the legal "floor" for pay in your pharmacy. Casual employees receive a 25% loading on top of the minimum hourly rate because they do not receive paid leave entitlements.

Penalty Rates apply for work performed on Saturdays, Sundays, Public Holidays, and for very early morning or late-night shifts. You must pay these higher rates to ensure you remain compliant with the Award's standards for non-standard hours.

Allowances cover extra costs incurred by employees. For example, you must pay a meal allowance if an employee works more than 1.5 hours of overtime without being notified the previous day. Other common allowances include a laundry allowance for uniforms and a motor vehicle allowance for employees using their own cars for work.

Why Correct Classification is Critical

Pay rates are strictly tied to an employee's Classification Level. You must classify employees based on the highest level of skill they are required to use to perform their principal job functions.

You are required by law to notify every employee of their classification in writing when they are hired. Furthermore, you must provide a new written notice every time their classification changes, such as when an assistant moves up a level.

Key Things Employers Get Wrong

Even experienced owners can run into compliance traps. Be mindful of these specific "Watch-outs":

The Sunday Rostering Trap: If an employee is rostered to work 3 Sundays in a 4-week cycle, they must have 3 consecutive days off during that cycle. This break must include a Saturday and Sunday.
Rostering Limits: Employees must generally have two consecutive days off each week and should never work more than six days in a row.
The Right to Disconnect: New rules give employees the right to generally refuse to monitor or respond to work contact outside of their hours unless the refusal is unreasonable.
Record Keeping: All part-time hours and any subsequent changes to those hours must be agreed upon in writing.

Practical Compliance Tips

Provide Mandatory Statements: Give every new hire a copy of the Fair Work Information Statement when they start. This is a mandatory requirement under the National Employment Standards.
Keep Documents Accessible: Store a copy of the Award and the National Employment Standards (NES) where employees can easily read them, such as in a staff room or electronic hub.
Document Everything: Always put agreements for part-time hours or flexible work arrangements in writing and keep them in your records.
Review Roles Regularly: Check at least once a year to see if your assistants' duties have changed. If they have taken on more responsibility, their classification level and pay may need to increase.

A compliant pharmacy is a professional, stable, and fair workplace for everyone. By following these core rules, you protect your business interests and show your team that they are valued. Keep this guide as a quick reference to help your pharmacy run smoothly.

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.