Fast Food Award Checklist For Cafe And Takeaway Employers

Does the Fast Food Award apply to your cafe, takeaway shop or quick service food business? It might, but not every business selling coffee, burgers or sandwiches falls under the same award.

The good news is that you can usually work it out by looking at what your business mainly does, how customers are served, and what each employee actually does day to day.

Once you know the right award, the next step is practical: update your employment contracts, rosters and payroll settings so your staff are classified, paid and rostered correctly under the Fair Work Act 2009 and the relevant modern award.

Does The Fast Food Award Apply To Your Business?

It depends on the main nature of your business and the work your employees perform.

The Fast Food Industry Award 2020 generally covers national system employers in the fast food industry and their employees. In simple terms, that usually means a business where food and drinks are prepared and sold for quick consumption, often with counter service, drive through, food court service, takeaway or delivery.

Your business may be covered by the Fast Food Award if you run something like:

• A burger, chicken, pizza, kebab, sushi or sandwich takeaway outlet
• A quick service franchise or independent takeaway shop
• A food court store where customers order at the counter
• A drive through or delivery focused food business
• A cafe style business where takeaway and counter service are the main offering

A modern award sits under the Fair Work Act 2009. If it applies, it sets minimum rules for pay, penalties, allowances, breaks, rostering, classifications and some employment conditions.

If your business has an enterprise agreement, that agreement may apply instead of the award. Even then, the award is still relevant because an enterprise agreement needs to leave employees better off overall when compared with the award.

Most incorporated businesses are in the national Fair Work system. If you operate as an unincorporated sole trader or partnership in Western Australia, award coverage can be different, so it's worth checking your position before changing payroll settings.

Fast Food Award Or Restaurant Award: How Do You Choose?

You choose based on the real character of your business, not just the words on your menu or your ABN registration.

This is where cafe and takeaway employers often get stuck. A business can look like a cafe from the street but operate more like fast food behind the counter. Another cafe might sell takeaway coffees, but its main business is table service meals, bookings and dine in customers.

As a practical guide:

• Fast Food Award: More likely where customers order and pay at the counter, food is prepared for quick consumption, takeaway is a major part of the business, and service is limited.
• Restaurant Industry Award: More likely where your main business is a restaurant or cafe with sit down meals, table service, reservations or a more traditional dine in experience.
• Hospitality Industry (General) Award: More likely for hotels, pubs, accommodation venues, certain catering operations and broader hospitality settings.

Say you run a cafe in Brisbane. During the week, 80% of sales are takeaway coffees, toasties and muffins ordered at the counter, with only a few stools near the window. Your staff mainly make coffee, prepare food, serve customers quickly and pack takeaway orders. The Fast Food Award may be the better fit.

But if you run a licensed cafe with a full breakfast and lunch menu, table service, bookings and staff assigned to waiting tables, the Restaurant Award may be more appropriate.

If your business is mixed, look at the dominant part of the business and each employee's role. Getting this wrong can lead to underpayments or incorrect penalties, so it's sensible to get tailored advice if the answer isn't obvious.

What Classification Should You Use For Each Employee?

You should classify each employee based on the duties they actually perform, their responsibilities and their level of skill.

The Fast Food Award uses classification levels. A junior employee serving at the counter and doing basic cleaning will usually sit differently from a shift supervisor who directs other staff, opens and closes the store, handles customer complaints and manages cash procedures.

Don't choose a lower classification just because someone is casual, new to the business or still learning your systems. The classification should match the job, and you can update it as the employee's duties grow.

A simple classification review can look like this:

1. List the employee's usual tasks: Include serving customers, food preparation, cooking, coffee making, cleaning, delivery work, cash handling and opening or closing duties.
2. Identify responsibility level: Note whether they supervise others, train staff, manage a shift, handle complaints or make decisions without a manager present.
3. Compare the duties to the award levels: Match the real role to the classification descriptions in the Fast Food Award.
4. Record your reasoning: Keep a short note in the employee's file explaining why you chose that level.
5. Review when duties change: Recheck classification when someone becomes a team leader, shift supervisor or store manager.

This matters because classification drives the minimum pay rate and can affect allowances and penalty rates. If payroll is set up using the wrong level, each rostered hour can compound the problem.

For casual employees under the Fast Food Award, remember that casual status is separate from classification. A casual employee can still be Level 1, Level 2 or Level 3, depending on their duties. Casuals generally receive a 25% casual loading on top of the relevant minimum hourly rate.

What Pay Rates, Penalties And Breaks Need To Go Into Your Rosters?

You need to build the award's minimum rates, casual loading, penalty rates, overtime rules, allowances and break rules into your roster and payroll system.

Fast Food Award pay rates aren't one flat rate for every shift. The correct rate can change depending on:

• The employee's classification level
• Whether they're full time, part time or casual
• Their age, if junior rates apply
• The day and time they work, including weekends, public holidays and late nights
• Whether overtime applies
• Whether any allowances are triggered

Award minimum wages usually change from the first full pay period on or after 1 July each year following the Fair Work Commission's Annual Wage Review. Because the dollar figures change, you should confirm current rates using the Fair Work Ombudsman's Pay and Conditions Tool or the current Fast Food Award pay guide before each increase takes effect.

Fast Food Award Breaks

Break rules are a common source of payroll issues because they need to be planned before the shift starts.

Under the Fast Food Award, employees are generally entitled to:

• 4 hours or more but less than 5 hours: one 10 minute paid rest break
• 5 hours or more but less than 9 hours: one 10 minute paid rest break and one unpaid meal break of at least 30 minutes and up to 60 minutes
• 9 hours or more: two 10 minute paid rest breaks and one unpaid meal break of at least 30 minutes and up to 60 minutes

The award also says an employer can't require an employee to work more than 5 hours without taking a meal break. If a required meal break isn't provided, this can breach the award and create compliance and record keeping issues. Check the current award or get advice before treating missed breaks as paid or unpaid time.

For example, Mia runs a takeaway shop and rosters Sam, a casual counter employee, from 9:00am to 2:30pm. That's a 5.5 hour shift. Sam should usually receive one 10 minute paid rest break and one unpaid meal break of 30 to 60 minutes. If Mia wants Sam paid for 5 hours of work, the roster needs to show the unpaid meal break clearly, such as 9:00am to 2:30pm with a 30 minute unpaid meal break.

What Should You Update In Your Employment Contracts And Payroll?

You should update anything that controls how your employees are engaged, rostered, paid and managed.

Start with payroll, because that's where errors turn into dollars. Then update your employment contracts and internal policies so they match how you actually operate.

Your award compliance checklist should include:

• Confirming the correct award for each role
• Completing an award classification review for each employee
• Updating ordinary hourly rates, casual loading, penalties and overtime settings
• Adding break rules into your rostering process
• Checking junior rates, if you employ workers under 21
• Reviewing public holiday and weekend rules before busy periods
• Keeping accurate time and wage records, as required under the Fair Work Act 2009

Your employment contracts should also line up with the award. A contract can't undercut the Fast Food Award or the National Employment Standards, but it can make the employment relationship much clearer.

Contract Outline To Tailor Before Use

A lawyer should tailor your contract before you use it, especially if you're relying on a template. Templates often miss the practical details that matter in a real cafe or takeaway business.

1. Role And Duties: Describe the position, usual duties and reporting line.
2. Employment Type: State whether the role is full time, part time or casual.
3. Award And Classification: Identify the applicable award and classification level.
4. Hours And Rosters: Explain ordinary hours, roster changes and availability expectations.
5. Pay And Penalties: Refer to minimum award entitlements and how loading, penalties and overtime are handled.
6. Breaks: Set out how paid rest breaks and unpaid meal breaks will be scheduled.
7. Policies: Refer to workplace policies such as uniform, food safety compliance, social media, bullying and harassment, and cash handling.
8. Confidentiality And Business Property: Protect recipes, supplier information, systems, passwords and store property.
9. Termination: Explain notice, final pay and return of property, subject to the award and Fair Work Act.

If you engage casual employees, you should also be aware of the casual employee pathway under the Fair Work Act. Eligible casuals can notify you that they believe they no longer meet the casual definition after 6 months, or after 12 months if you're a small business employer with fewer than 15 employees. You generally have 21 days to respond.

Common Mistakes To Avoid

The biggest mistake is assuming the award is correct because payroll was set up that way years ago.

Cafes and takeaway businesses change quickly. You might start as a coffee cart, add dine in meals, open a second store, introduce delivery, or appoint shift supervisors. Each change can affect award coverage, classifications and entitlements.

Watch out for these common issues:

• Using the same award for every food business: Fast food, restaurant and hospitality coverage can differ.
• Calling everyone Level 1: Duties and responsibility can push an employee into a higher classification.
• Treating casual loading as a substitute for penalties: Casual loading doesn't automatically replace weekend, public holiday or overtime entitlements.
• Forgetting breaks in short staffed periods: Busy lunch rushes still need compliant rostering.
• Not updating rates after 1 July: Award rates often change each year from the first full pay period on or after 1 July.
• Relying on verbal arrangements: Without written terms, it's harder to prove what was agreed about hours, availability and duties.

If you discover a possible underpayment, deal with it promptly and carefully:

1. Pause further errors: Fix payroll settings before the next pay run if you can.
2. Keep records: Save rosters, payslips, timesheets, contracts and payroll reports.
3. Recalculate the position: Compare what was paid against the correct award entitlements.
4. Communicate clearly: If money is owed, explain the correction and timing.
5. Get help if needed: Award coverage, overtime and penalties can get technical, especially across multiple stores.

Fixing the legal foundations early is much easier than trying to unwind years of incorrect classifications or payroll settings later.

Key Takeaways

• The Fast Food Award may apply if your business is mainly quick service, takeaway, counter service, drive through, food court or delivery focused.
• Cafes aren't automatically covered by one award. You may need to compare the Fast Food Award, Restaurant Award and Hospitality Award.
• Classifications should reflect what each employee actually does, not just their job title or employment type.
• Payroll should capture current award rates, casual loading, penalties, overtime, allowances and break rules.
• Rosters should build in paid rest breaks and unpaid meal breaks before shifts are published.
• Employment contracts, policies and payroll settings work best when they're consistent and tailored to your business.

If you'd like help with checking which award applies, updating your casual employment contracts, reviewing your rosters or fixing your payroll settings, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.