Restaurant Industry Award 2020 - A Simple Guide for Your Business

Apr 24

Does This Award Apply to You?

The first step is determining if your business falls under this specific Award. It generally covers employers and employees across Australia who work in the restaurant industry.

Your business is likely covered if it is a:

Restaurant or cafe.
Reception centre or function venue.
Nightclub or roadhouse.
Tea room operated in connection with a restaurant.
Catering service provided by a restaurant business.

This Award covers roles ranging from Food and Beverage Attendants and Kitchen Hands to Cooks, Chefs, and Administrative staff.

Critical Exclusion: It is a common point of confusion, but if your restaurant is operated in connection with a hotel, motel, or a registered club, this Award usually does not apply. Those businesses are typically covered by the Hospitality or Registered Clubs Awards instead.

Other businesses NOT covered include:

Fast food outlets.
Boarding schools, hospitals, or aged care catering.
Retail shops.

The Different Ways to Hire

Full-time Employees: Full-time employees work an average of 38 ordinary hours per week. These hours are usually averaged over a period of up to four weeks to allow for operational flexibility.
Part-time Employees: Part-time employees work a predictable pattern between 8 and 38 hours per week. A critical rule is that you must have a written agreement at the time of engagement. This agreement must specify their guaranteed hours and the days and times they are available. Every time they work, they must be given at least 3 hours of work.
Casual Employees: Casuals are hired as needed. Because they don't receive paid leave, they are paid a "casual loading," which is an extra 25% on top of the standard hourly rate. Every time a casual employee shows up, they must be paid for a minimum of 2 hours of work, even if the shift is shorter.
This Award sets limits on shift structures to ensure safety and prevent burnout. Generally, the most a person can work in a single day is 11.5 ordinary hours.

Taking Breaks

Breaks are essential in high pressure environments. The Award sets out "Break Milestones" based on shift length:

Shifts of 5 to 10 hours: One 30-minute unpaid meal break.
Late Rostered Breaks: If you roster an employee to take their unpaid meal break later than 5 hours after they start, they are entitled to an additional 20-minute paid meal break.
Shifts of more than 10 hours: One 30-minute unpaid meal break, plus two additional 20-minute paid rest breaks.

Watch Out: If you do not allow an employee to take their meal break at the rostered time, you must pay them a penalty of 50% extra on top of their ordinary hourly rate. This higher rate continues from the time the break was due until they finally take it or their shift ends.

Money Matters: Pay, Penalties, and Allowances

Minimum pay rates depend on an employee's "Level" (from Introductory to Level 6) and their age.

Penalty Rates: These are higher rates of pay for working at specific times. This includes Saturdays (125%), Sundays (150%), and Public Holidays (up to 250%). There is also an extra hourly payment for hours worked late at night (10:00 pm to midnight) or in the early morning (midnight to 6:00 am).
Allowances: These cover specific costs. Common examples include a tool allowance for cooks who provide their own knives or a laundry allowance for special uniforms.

Why Classification is the Key to Compliance

Matching an employee’s actual duties to the correct "Level" is the most important step for an employer. If you classify someone too low, you aren't paying the correct legal rate. New starters without experience usually begin at the "Introductory Level" for up to three months.

Higher Duties Rule:

If an employee (like a Waiter) is asked to "act up" in a higher role (like a Supervisor):

If they do the higher-level tasks for less than two hours, pay them the higher rate for the actual time worked.
If they do it for two hours or more, you must pay them the higher rate for the entire day.

Watch Out for These Errors

Handshake Agreements: Always put part-time hours in writing at the start.
Short Casual Shifts: If a casual works for 1 hour, you must still pay them for 2.
Late Night Misses: Remember that extra penalty rates kick in after 10:00 pm on weekdays.
Illegal Deductions: You generally cannot deduct money for broken glassware or till shortages. This is only allowed in very rare cases of proven "wilful misconduct."

Practical Tips for Staying Compliant

Accessibility: Keep a copy of the Award and the NES where staff can easily read them.
Clear Rostering: Post rosters in an accessible place at least one week in advance.
Accurate Records: Use a system that tracks exact start and finish times, including the timing of all breaks.
Regular Reviews: Check employee levels as they gain experience or finish qualifications.

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.