Plumbing and Fire Sprinklers Award 2020 - A Simple Guide for Your Business

Apr 13

Who is Covered? (The "Who’s Who" of the Award)

This award has a broad reach across the plumbing and fire protection sectors. It covers employers and employees involved in the "Services Stream," which includes both on-site construction and general maintenance or service work.

Common roles and work areas covered include:

Plumbing and gasfitting
Roof plumbing
Fire sprinkler fitting and fire protection systems
Mechanical services (including air conditioning and ventilation)
Irrigation installation
Specialist tasks like Lead Burning and Domestic Engineering
Apprentices, Plumber’s Labourers, and Sprinkler Fitter’s Assistants

If your business provides these services by contract, whether you are working on a massive new build or doing residential emergency repairs, this is almost certainly the award that applies to your team.

Hours of Work and the RDO System

The award is built around a standard 38-hour work week, but the scheduling follows a specific industry rhythm.

Ordinary Hours: Generally worked Monday to Friday between 7:00 am and 6:00 pm.
The "Early Start" Option: You can agree with your team to start as early as 6:00 am.
Minimum Engagement: If you hire a casual or ask a staff member to work on a Saturday, you must pay them for at least 3 hours of work, even if the job is short.

How the Rostered Day Off (RDO) Works

The industry standard is a 20 day cycle. Employees work 8 hours per day but are only paid for 7.6 hours. The remaining 0.4 of an hour is "banked" every day. Over four weeks, this adds up to 7.6 hours - one full paid day off.

The Right to Disconnect

A new and important addition to the workplace landscape is the "Right to Disconnect." This allows employees to refuse to monitor or respond to work-related contact outside of their working hours unless that refusal is unreasonable (for example, in a genuine emergency).

Breaks and "Washing Time"

Taking the right breaks is both a safety requirement and a legal obligation.

Meal Break: A 30-minute unpaid break, typically between noon and 1:00 pm.
Rest Break: A 10-minute paid morning tea break.
Washing Time: This is a unique industry right. Employees get 5 minutes of paid time immediately before lunch and before finishing the day to wash up and put away gear.
Safety Note: If an employee is working with toxic substances (like specific epoxy-based materials), this washing time increases to 10 minutes.

Shiftwork Simplified

"Shiftwork" applies when ordinary hours finish after 6:00 pm or before 7:00 am. To pay these as "shift rates" rather than overtime, two conditions must usually be met:

1. The employee is given at least 48 hours' notice.

2. The work lasts for at least five consecutive shifts.

When these are met, employees get a 33% penalty rate. If you don't meet these requirements (a "short shift"), you must pay 150% for the first two hours and 200% thereafter.

The Money Breakdown: Pay, Penalties, and Allowances

In this award, the "Minimum Rate" is rarely the final number on the payslip. Most employees are paid an All-Purpose Rate.

Key Definition: Ordinary Hourly Rate: The base rate for the employee's level. All-Purpose Rate: The base rate plus specific regular allowances (like Industry or Tool allowances). You must use this higher "All-Purpose" rate when calculating overtime, annual leave, and other paid leave.

Common All-Purpose Allowances:

Industry Allowance: A weekly payment for the tough conditions of construction sites.
Trade Allowance: For the specific skills of the plumbing or sprinkler trade.
Tool Allowance: To help cover the cost of maintaining their own gear.
Registration Allowance: For those holding specific state-based plumbing registrations.
Special Fixed Allowance: A flat $7.70 per week that applies to all plumbing employees (except apprentices). It is a "set and forget" amount that doesn't change even when other rates go up.

Overtime Basics: Generally, overtime is paid at time and a half (150%) for the first two hours and double time (200%) after that.

Classifications: The Level 1 Progression Trap.

Pay is tied to an employee's "Level," based on their qualifications and the skills required for the job.

Expert Insight: Level 1 is not a static classification. The award requires a time-based progression for these workers:

Level 1(a): New entrant.
Level 1(b): Automatically progress after 3 months in the industry.
Level 1(c): Automatically progress after 12 months in the industry.

As a business owner, you should set calendar reminders for these dates to avoid "underpayment by omission" claims.

Pro-Tips for Your Payroll Audit

To keep your business safe from Fair Work audits, check your processes against these frequent errors:

Call-Back Minimums: If you call a worker back for an emergency job after hours, you must pay a minimum amount: 3 hours for plumbing/mechanical workers and 4 hours for sprinkler fitters.
The RDO Accrual: Ensure your payroll software is correctly banking that 0.4 of an hour every day.
Allowance Inclusion: Double-check that all-purpose allowances are included before you apply the 150% or 200% overtime multiplier.
Terms of Engagement: You are legally required to give every employee a written note at the start of their job stating if they are Daily Hire, Weekly Hire, or Casual.

Practical Tips for Staying Compliant

Superannuation Choice: Remember that contributions must be made to the fund chosen by the employee. If they don't choose, you must check with the ATO for their "Stapled Fund" before using your default fund.
Detailed Payslips: Use a template that breaks down the base rate and each allowance separately. This transparency prevents disputes.
Digital Access: Keep a copy of the Award and the National Employment Standards (NES) in a shared digital folder or on a staff noticeboard.
Written Changes: If you need to move a Rostered Day Off or change a roster, always confirm it in writing (even an email or text is better than a verbal agreement).

Compliance isn't about memorising this 150-page legal document. It is about setting up a core structure that respects the "all-purpose" nature of trade pay, tracks the RDO cycle accurately, and acknowledges the progression of your employees as they gain experience.

If you’re ever unsure about a specific situation, FiveSeven can help you get on the right track. Taking the time to get it right today prevents costly headaches tomorrow.

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.