Awards

Most dairy jobs are covered by a state or federal award, so it is important to know which applies. For most farms it is the Pastoral Award 2020.

Which award applies

Since 1 January 2010, all states and territories except Western Australia have joined the federal system. Employers in those states are national system employers, and state industrial laws no longer apply to the private sector there.

Modern federal awards

In 2010, federal awards were modernised into industry awards; around 40 farming awards were consolidated into the Pastoral Award 2010 and the Horticulture Award 2010. On 6 November 2020, the Pastoral Award 2020 replaced the 2010 award. The Pastoral Award 2020 applies to all national system employers across Australia, including those previously award free (such as Queensland dairy farms). It retains the dairy hours-of-work provision — 152 hours over four weeks before overtime applies.

Western Australia

In Western Australia, sole traders and partnerships are in the WA state system and are not covered by the Pastoral Award 2020. From 1 July 2024, the WA Farm Employees' Award applies to the WA dairy industry, setting the state minimum wage and operating alongside the Minimum Conditions of Employment Act. Companies and other national system employers in WA are covered by the Pastoral Award.

No award or agreement

If no award covers a job, there should still be a written common law employment contract. The National Employment Standards (and WA state minimums) set the floor — minimum pay, annual leave, personal leave and other entitlements. Award-free employees should still receive rest breaks as a work health and safety measure. Seek advice from a state farming organisation or a legal adviser when drafting contracts.

The Pastoral Award 2020

The Pastoral Award 2020 is a modern award under the Fair Work Act. It applies to all national system employers and is the only federal award covering the dairy industry. Read it on the Fair Work Ombudsman award page or download the consolidated award (PDF).

 
Tip

The award requires employers to keep a copy on a noticeboard at or near the workplace, or electronically, whichever is easier for employees to access.

Hours and overtime — what's different for dairy

Ordinary hours are 152 over a four-week period, for full-time and casual employees alike. For part-time employees, they are the hours agreed at the start of employment. Part-time and casual employees have a minimum of three hours per shift (two for full-time secondary students aged 18 or under).

Overtime is the dairy-distinctive part. It applies only once 152 hours are worked in a four-week period, regardless of the day — unlike many awards, there is no weekend penalty until that threshold. Overtime is paid at time and a half, and double time on Sundays, except feeding and watering stock on Sundays, which is time and a half (milking is not feeding and watering).

Time off can be taken instead of overtime by written agreement, taken within six months on an hour-for-hour basis. For the full conditions, see the Fair Work Pastoral Award summary.

Classifications

The award sets six dairy classifications:

  • FLH1 — dairy operator grade 1A, less than six months' experience
  • FLH2 — dairy operator grade 1A, six to 12 months' experience
  • FLH3 — dairy operator grade 1B, more than 12 months' experience
  • FLH5 — dairy operator grade 2
  • FLH7 — senior dairy operator grade 1
  • FLH8 — senior dairy operator grade 2.

For current rates by classification, see the Pay rates section.

Public holidays

Public holidays come from the National Employment Standards. In addition, the Pastoral Award 2020 provides double time for farm and livestock hands who work a public holiday. If a public holiday falls during annual leave, it is not counted as annual leave; the employee is paid for the public holiday at their base rate.

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Casual public-holiday penalties are calculated on the ordinary rate, not the loaded casual rate: (2 × ordinary rate) + (25% × ordinary rate). Employers and employees can also agree to substitute another day for a public holiday.

Other entitlements

These entitlements come from the National Employment Standards and the award. The Fair Work Ombudsman maintains the detail — see the Pastoral Award summary and the National Employment Standards section.

  • Annual leave: four weeks under the National Employment Standards, plus a 17.5% award loading on leave taken or paid out on termination. Rules on excessive leave, leave in advance and cashing out apply, and those agreements must be in writing.
  • Personal/carer's, compassionate and family and domestic violence leave: part of the National Employment Standards. See the Fair Work Ombudsman for family and domestic violence leave.
  • Meal and rest breaks: an unpaid meal break (30 minutes to one hour, within five hours of starting work) and a paid 10-minute morning rest break.
  • Notice of termination: set by the National Employment Standards; the award also requires employees to give notice. See the Termination section.
  • Roster changes: employers must consult employees on regular hours before changing rosters (clause 27).

Flexible pay arrangements

The award allows two ways to vary standard pay, each requiring the employee to be better off overall:

  • Individual Flexibility Agreement (IFA): varies some award terms to suit the business and employee. It stands in place of the terms it modifies, provided the employee is better off overall than under the award.
  • Annualised salary: a written agreement to pay an annual wage instead of an hourly rate, suited to employers who keep excellent time records. The salary must be no less than the award would have provided.

See the Pay Rates section for how these affect rates.

Common questions

Which award covers a dairy farm?

For most dairy farms it is the Pastoral Award 2020, which applies to all national system employers across Australia. In Western Australia, sole traders and partnerships are instead covered by the WA Farm Employees' Award.

Does the Pastoral Award 2020 apply in Western Australia?

Not to WA sole traders and partnerships, which are in the WA state system and covered by the WA Farm Employees' Award. WA companies and other national system employers are covered by the Pastoral Award.

How many hours can an employee work before overtime under the Pastoral Award 2020?

Ordinary hours are 152 over a four-week period. Overtime is only payable once 152 hours have been worked, regardless of the day, and is paid at time and a half (double time on Sundays).

What is the annual leave loading under the Pastoral Award 2020?

17.5%, paid on annual leave that is taken or paid out on termination, in addition to the National Employment Standards entitlement.

Can a dairy employer pay a flat annual salary?

Yes, through a written annualised-salary agreement or an Individual Flexibility Agreement. The amount must be no less than the employee would have received under the award — the Better Off Overall Test.