All employers under the Fast-Food Industry Award must implement extensive changes following the 4-yearly Modern Award review. Most of these updates took effect on 28 July 2022. In 2022, significant changes to the Fast Food Industry Award were mandated that all businesses must observe.
New Definition of the Fast-Food Industry
The review has updated the definition of a Fast-Food Industry enterprise. It now covers any activity that takes orders and prepares and sells food via direct provision or delivery. Notably, these Fast Food Industry Award Changes from 2022 mean a broader scope of coverage for businesses in this sector.
Key provisions include:
- Target Market: Meals, snacks, and beverages intended for consumption away from the point of sale.
- Locations: This includes food sold in food courts, shopping centers, or retail complexes.
- Third-Party Delivery: Entities that contract to deliver fast food on behalf of a business are not covered, as they provide a contracted service.
- Exclusions: Facilities primarily offering sit-down services, such as cafes and restaurants, fall under the Restaurant or Hospitality Industry Awards.
Updates to Annual Leave Loading
Clause 22.2 of the amended Award changes how you must calculate annual leave loading. When an employee uses accrued leave, you must pay them their minimum hourly rate plus the greater of these two amounts: Importantly, the 2022 updates to the Fast Food Industry Award introduced new annual leave rules for employers to follow.
- 17.5% of the ordinary hours they would have worked.
- The relevant weekend penalty amounts they would have earned if they were not on leave.
2022 Minimum Wage Increase
From the first pay period after 1 July 2022, the award minimum wage increased to reflect the new adult minimum wage: These Fast Food Industry Award Changes 2022 brought a direct increase to basic pay rates across the board.
- Full-time (under $869.60/week): An increase of at least $40 per week.
- Full-time (over $869.60/week): An increase of 4.6%.
- Casual Employees: A minimum of $26.73 per hour, which includes the 25% casual loading.
- Other Wages: Trainee, apprentice, and junior rates increased proportionately based on individual circumstances.
New Superannuation Guarantee (SG) Rates
As of 1 July 2022, the Superannuation Guarantee rate increased to 10.50%. The government also removed the $450 monthly eligibility threshold. This change means you must pay super for almost all employees, regardless of their earnings. These superannuation updates were also part of the Fast Food Industry Award Changes 2022 rollout.
Note: Employees under 18 only require SG payments if they work more than 30 hours per week.
Next Step for Success
Managing these technical wage and award adjustments can be time-consuming. If you need help calculating or implementing these Fast Food Industry Award Changes from 2022, Assurance HR Management is here to guide you.
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Call us today at 1800 577 515 for expert advice on the Fast Food Industry Award Changes 2022 and what they mean for your workplace.
