From the first full pay period on or after 1 December 2026, a large part of the fast food workforce costs more. The Fair Work Commission has settled how junior rates will be phased out for employees aged 18 to 20 who have worked for the same employer for more than six months, and the Fast Food Industry Award is one of the three awards it covers. The first step lands in December, and the last on 1 July 2029.
Everything else in this award is settled too, and is being applied incorrectly in a great many payrolls right now. Daniel Holbrook of Brookvale HR Solutions sets out what the Fast Food Industry Award 2020 (MA000003) requires from the first full pay period on or after 1 July 2026, and where the money quietly leaks. Every figure comes from the Fair Work Ombudsman pay guide for MA000003, published 24 June 2026, cross-checked in the Pay and Conditions Tool. Award rates change, so confirm current figures against your own circumstances before relying on them.
Which businesses the Fast Food Award covers, and which it does not
The award covers employers in the fast food industry throughout Australia and their employees in the classifications it lists. The definition isn't about the sign above the door. It's about what is sold and where it's eaten.
Under clause 4.2, the fast food industry means taking orders for, preparing and selling, whether over the counter or by delivery:
- Meals, snacks and beverages sold to the public primarily to be consumed away from the point of sale
- Take away food and beverages packaged, sold or served so they can be eaten elsewhere
- Food and beverages sold in food courts, shopping centres and retail complexes, excluding coffee shops, cafés, bars and restaurants providing primarily a sit-down service
The "away from the point of sale" test
The operative words are "primarily to be consumed away from the point of sale". A business with a counter, a menu board and a queue is usually covered by the Fast Food Award even if it has a handful of tables in the corner. A business built around table service, where people sit down and are waited on, usually isn't.
This is a question of the predominant character of the operation. A burger shop with six stools is fast food. A café where orders are taken at the table is not, even if it sells takeaway coffee all morning. Getting this wrong is not a small error: it means every award rate the business pays is wrong.
Fast food, restaurant or general retail: the boundary that sets your rate book
The three awards in this territory exclude each other explicitly, so the boundary can be checked in both directions rather than guessed.
Clause 4.4 of the Fast Food Industry Award says the award does not cover employers in the hospitality industry or the general retail industry as defined in their own awards. Running the check the other way: the Restaurant Industry Award 2020 (MA000119) excludes the fast food industry at clause 4.4(d)(iii), and the General Retail Industry Award 2020 (MA000004) excludes "restaurants, cafes, hotels, motels or fast food operations" at clause 4.2(n). Where a standalone dine-in restaurant is the question rather than a takeaway counter, the boundary with the Restaurant Award is the one to work through first.
Two situations catch employers. A food outlet inside a shopping centre food court is fast food territory, not retail, even though the landlord is a retail centre. A bakery is the opposite case: general retail picks up bakery shops where the predominant activity is baking for sale on the premises. If coverage is the open question rather than the rates, start with how award coverage is actually decided before touching a pay rate.
Fast Food Award pay rates by employment type
Clause 12.4 defines three classifications. Level 1 employees prepare food, take orders, cook, sell, serve or deliver. A Level 2 employee has the major day-to-day responsibility for supervising Level 1 employees, trains new employees, or is required to exercise trade skills. A Level 3 employee is appointed to be in charge of a shop, food outlet or delivery outlet. Level 3 then carries two pay points in the rates table, depending on how many people the employee is in charge of, so a business reading the pay guide sees four lines against three classifications.
Classification is not a matter of job title. Under clause 12.2 it must be based on the skill level the employer requires the employee to exercise to carry out the principal functions of the employment, and clause 12.3 requires the employer to notify the employee in writing of their classification and of any change to it. That written notification is a standing obligation and one of the more commonly missed.
Adult employees aged 21 and over
Minimum rates for full-time and part-time employees from the first full pay period on or after 1 July 2026, from Table 3 at clause 15.1:
| Classification (clause 15.1) | Minimum weekly rate | Minimum hourly rate |
|---|---|---|
| Fast food employee level 1 | $1,056.80 | $27.81 |
| Fast food employee level 2 | $1,119.10 | $29.45 |
| Fast food employee level 3, in charge of one or no person | $1,136.40 | $29.91 |
| Fast food employee level 3, in charge of 2 or more people | $1,150.40 | $30.27 |
One rule sits outside the age scale: a trade qualified junior must be paid the appropriate adult rate.
Casual employees and the 25 per cent casual loading
Casual employees receive a casual loading of 25 per cent of the minimum hourly rate under clause 11.2. That produces the following casual hourly rates.
| Classification | Casual hourly rate |
|---|---|
| Fast food employee level 1 | $34.76 |
| Fast food employee level 2 | $36.81 |
| Fast food employee level 3, in charge of one or no person | $37.39 |
| Fast food employee level 3, in charge of 2 or more people | $37.84 |
The recurring error is treating the loading and the penalty rates as two multipliers to be stacked. They aren't applied that way. The award publishes a single casual figure for each penalty window, and that figure is what a casual is owed. Take the numbers from the pay guide rather than building them in a spreadsheet. Casuals don't receive paid annual leave or paid personal leave, because the loading is paid instead, but the rest of the National Employment Standards still applies to them.
Casual conversion and the employee choice pathway
A casual employee can give written notice asking to become a full-time or part-time employee once they have been employed for at least 6 months, or 12 months where the business has fewer than 15 employees, if they believe they no longer meet the Fair Work Act definition of a casual employee. The employer must respond in writing within 21 days, and can refuse only on the grounds the Act allows. Clause 11.5 of the award points straight to this employee choice pathway in the National Employment Standards.
In fast food, where regular weekly casual rosters are the norm, casual conversion is worth anticipating rather than meeting cold. A casual on the same four shifts every week for a year is the employee most likely to ask, and the answer depends on the facts of their roster, not on the word "casual" in their letter of offer.
Part-time employees, the pattern of work and the minimum engagement rule
The minimum daily engagement for a casual employee is 3 consecutive hours under clause 11.3, and an employer must roster a part-time employee for a minimum of 3 consecutive hours on any shift under clause 10.2. A two hour shift isn't available under this award for either employment type, however convenient it would be for a lunch peak.
At engagement, part-time employees also need a written agreement on a regular pattern of work under clause 10.3. It must record the ordinary hours each day, the days of the week, the actual start and finish times, when meal breaks may be taken, the 3 hour minimum, and that any variation will be in writing, which can be a text message. A change to a single shift must be recorded by the end of that shift. Where no record exists, or rostering has drifted from the agreement, hours worked outside the agreed pattern of work are paid at overtime rates (clauses 10.6 and 10.9).
Ordinary hours, rosters and breaks
Full-time permanent employees work an average of 38 ordinary hours per week over no more than four weeks, rostered as 38 hours per week, 76 over two weeks, 114 over three or 152 over four (clause 13). No more than 11 ordinary hours can be worked on any day, and ordinary hours on a day are continuous apart from breaks. Casual ordinary hours are capped at 38 hours per week, or averaged over the roster cycle.
Breaks under clause 14 depend on shift length:
| Hours worked per shift | Paid rest break | Unpaid meal break |
|---|---|---|
| Less than 4 hours | None | None |
| 4 hours to under 5 hours | One 10 minute break | None |
| 5 hours to under 9 hours | One 10 minute break | One break of 30 to 60 minutes |
| 9 hours or more | One 10 minute break with two meal breaks, or two 10 minute breaks with one | One or two breaks of 30 to 60 minutes |
An employer can't require an employee to take a break in the first or last hour of work, to combine a paid rest break with an unpaid meal break, or to work more than 5 hours without a meal break. For part-time employees, break times belong in the roster and the written pattern of work.
Junior rates, and the phase-in from 1 December 2026
This is the section that separates the Fast Food Industry Award from its neighbours. The Fair Work Commission's junior rates decision applies to three awards: General Retail, Fast Food and Pharmacy. Hospitality and restaurant employers are untouched by it. Fast food employers are directly in scope.
The current age-based percentage scale
Junior rates under clause 15.2 (Table 4) are a percentage of the adult rate for the employee's classification in clause 15.1.
| Age | Percentage of adult rate | Level 1 hourly rate |
|---|---|---|
| Under 16 | 40% | $11.12 |
| 16 years | 50% | $13.91 |
| 17 years | 60% | $16.69 |
| 18 years | 70% | $19.47 |
| 19 years | 80% | $22.25 |
| 20 years | 90% | $25.03 |
| 21 years and over | 100% | $27.81 |
These are the rates that apply until the first full pay period on or after 1 December 2026. After that date they continue for employees under 18, and for employees aged 18 to 20 in their first six months with the employer.
What the 2026 decisions change for 18 to 20 year olds
On 31 March 2026 a Full Bench of the Fair Work Commission decided in [2026] FWCFB 75 (matter AM2024/24) that junior rates will no longer apply to employees aged 18 to 20 who have worked for the same employer for more than six months, in the General Retail, Fast Food and Pharmacy awards. On 26 August 2026 its implementation decision, [2026] FWCFB 222, set the timetable and rejected employer arguments to delay the start to July 2027. Determination PR813654 varies the Fast Food Industry Award.
| Age, more than six months' service | Today | From 1 December 2026 | Full adult rate from |
|---|---|---|---|
| 18 years | 70% | 75% | 1 July 2029 |
| 19 years | 80% | 85% | 1 July 2028 |
| 20 years | 90% | 95% | 1 July 2027 |
Rates then rise five percentage points each July and December until the adult rate is reached, and each step applies from the first full pay period on or after its date. Where a business changes hands, service with the old employer counts towards the six months. Because junior rates are a percentage of adult rates that themselves move each July, every step compounds with the annual wage review. Current status and the determinations are on the Commission's junior rates application case page.
What has not changed: under-18s and the six-month test
Two elements are worth acting on now. Junior rates for employees under 18 aren't affected. And the change is tied to more than six months of service with the same employer, so employees aged 18 to 20 with less than six months' service stay on junior percentages until they cross that threshold.
That second point has an administrative consequence. The trigger is a service date, employee by employee. A payroll or time and attendance system that can't reliably report continuous service for every junior can't apply the change correctly on the day each employee becomes eligible. The broader background is covered in the junior rates decision affecting fast food, retail and pharmacy.
Penalty rates, overtime and late night loadings
Fast food trades at exactly the hours that attract loadings, which is why penalty configuration is where the largest underpayment in this industry accumulates.
Weekend and public holiday penalty rates
Penalty rates under clause 21 are a percentage of the minimum hourly rate. Sunday is the one to look at twice, because Level 1 employees and Level 2 and 3 employees are treated differently.
| Penalty | Full-time and part-time | Casual |
|---|---|---|
| Saturday | 125% | 150% |
| Sunday, Level 1 employees | 125% | 150% |
| Sunday, Level 2 and 3 employees | 150% | 175% |
| Public holiday | 225% | 250% |
In dollars at Level 1, that's $34.76 per hour on a Saturday or Sunday for permanent employees and $62.57 on a public holiday, or $41.72 and $69.53 for a casual. A Level 2 employee on a Sunday sits at $44.18 full-time and $51.54 casual, which is the distinction most commonly missed across weekends and public holidays under this award.
Evening and overtime rates
Two evening windows apply from Monday to Friday, and they're separate from weekend penalties.
| Window | Full-time and part-time | Casual |
|---|---|---|
| 10pm to midnight | 110% | 135% |
| Midnight to 6am | 115% | 140% |
Overtime is payable to permanent employees for hours beyond 38 per week or 11 in a day, before the rostered start time or after the rostered finish time, and, for part-time employees, beyond the agreed hours. Casual employees are paid overtime beyond 38 hours per week or 11 in a day. Under clause 20.6, overtime rates run at 150 per cent for the first 2 hours and 200 per cent after that Monday to Saturday, 200 per cent for all hours on a Sunday, and 250 per cent on a public holiday. For casuals the figures are 175, 225, 225 and 275 per cent. At Level 1, overtime beyond two hours is worth $55.62 an hour full-time and $62.57 casual. Where overtime on a Sunday isn't immediately before or after ordinary hours, clause 20.5 sets a minimum of 4 hours at the overtime rate.
Allowances employers miss
Allowances are small per occurrence and substantial per year, and they're the line items least likely to have survived the last payroll migration. The award provides for:
- Laundry allowance, $6.42 per week for full-time employees and $1.28 per shift for part-time and casual employees, where they launder required special clothing
- Cold work allowance, $0.38 per hour, with a further $0.59 per hour in cold chambers below zero degrees Celsius
- Meal allowance for overtime, $17.33, with a further $15.66 when more than 4 hours of overtime is worked
- Vehicle allowance, $0.53 per kilometre for employees engaged primarily to deliver using their own vehicle, and $1.00 per kilometre otherwise
- District allowance for Broken Hill, $47.90 per week
The award also requires reimbursement rather than a set allowance in several situations, including special clothing, and transport costs where an employee starts or finishes after 10pm or before 7am and their normal transport isn't available. That last one is worth checking against your closing rosters, because late finishes are routine here and the obligation isn't widely known.
Fast Food Award compliance: where employers get caught
The failures that turn up repeatedly in this industry are consistent, and none of them require bad intent:
- The wrong award at the boundary. A café treated as fast food, or a food court outlet treated as retail. The coverage clauses decide, and many operators have never read them.
- Sunday configured as a single rate. Level 1 and levels 2 and 3 differ on Sundays. One payroll rule for "Sunday" underpays every supervisor who works one.
- Evening loadings missing entirely. The 10pm and midnight windows are frequently absent from payroll configuration, and every late shift compounds the gap.
- Casual loading stacked on penalties. Building casual weekend rates by multiplying rather than reading the published figure produces numbers that are wrong in both directions.
- Junior birthdays and service dates not tracked. Age-based percentages step up on a birthday, and from December 2026 the six-month service date matters too. A payroll that doesn't action either keeps paying the lower rate.
- Minimum engagement breached at the edges. Two hour shifts rostered for a peak, where three consecutive hours are required.
Since intentional underpayment became a criminal offence, the consequences of never checking sit in a different category. An annual payroll review when new rates land each July, run against the current pay guide rather than last year's spreadsheet, is the cheapest compliance control available, and this year it matters more than usual: the businesses that apply the junior rates phase-in smoothly will be the ones whose classification and service data is already clean. If you'd rather have that done independently, a review of award classifications, penalty settings and junior service records checks the configuration before the December step lands, delivered by Daniel personally with no lock-in contracts.
