General information only – not legal advice.

This guide provides general information about the Restaurant Industry Award 2020 and related workplace laws as at the date of publication. It does not constitute legal, financial, employment, or industrial relations advice and should not be relied on as a substitute for advice specific to your business or circumstances.

Workplace laws, awards and Fair Work interpretations can change. While care has been taken to ensure accuracy at the time of publication, this guide does not guarantee completeness or ongoing accuracy. Always confirm current obligations using Fair Work resources or professional advice.

Quick summary for time-poor owners

If you only skim one section, make it this one:

  • The Restaurant Industry Award 2020 [MA000119] ("Restaurant Award") sets minimum pay and conditions for employees working in cafés, restaurants, bistros and similar food-focused venues.
  • Rates are typically reviewed annually, with the current pay guide effective from the first full pay period on or after 1 July 2025.
  • You must get four things right for every staff member:
    • Award coverage – does the Restaurant Award actually apply?
    • Classification – Food & Beverage Attendant Grades, Cook Grades, Chef classifications, etc.
    • Employment type – full-time, part-time or casual.
    • When they work – weekdays, weekends, public holidays, overtime.
  • Restaurant Award rules around part-time hours, overtime and penalties are stricter than many employers expect.
  • Casuals with regular patterns may be able to give written notice to change to permanent employment once eligible under updated casual conversion laws.

Bottom line: Hospitality is a regular focus of Fair Work Ombudsman compliance activity. Guessing rates or copying what the café next door pays creates serious underpayment risk.


What the Restaurant Award actually is

Think of the Restaurant Award as the minimum legal framework for food-focused hospitality businesses. You can view the official consolidated award text on the Fair Work Commission website.

It sets:

  • Minimum hourly rates for different roles and skill levels
  • Penalty rates for weekends, public holidays and overtime
  • Rules for part-time hours and agreed patterns
  • Allowances (split shifts, uniforms, meals, tools, etc.)
  • How the Award interacts with the National Employment Standards (NES)

You can always pay more — but you cannot legally pay less.


Important – award coverage matters

This guide assumes the Restaurant Industry Award 2020 [MA000119] applies.

Many businesses confuse the Restaurant Award with the Hospitality Industry (General) Award. The wrong choice can mean:

  • Incorrect base rates
  • Missed overtime
  • Incorrect Sunday or public holiday penalties

Rule of thumb: If food preparation/service is the primary business activity, then the Restaurant Award often applies — but coverage depends on the award's coverage clause and actual business operations.

  • Food preparation/service is the primary activity → Restaurant Award often applies
  • Accommodation, alcohol or gaming is the primary activity → Hospitality Award may apply

Always confirm coverage using Fair Work's Pay and Conditions Tool (PACT) or seek professional advice.

👉 See also: Hospitality Award Rates 2025 – A Simple Guide for Small Businesses

Award coverage decision tree (Start here before checking pay rates)

Not sure which award applies? Use this decision tree first. Follow it from top to bottom. When you hit YES, follow the arrow.

Step 1
What does your business primarily do?

Is your primary business activity one of the following?

  • Accommodation (hotel, motel, serviced apartments)
  • Alcohol-focused venue (pub, bar, tavern, wine bar)
  • Gaming venue (hotel or club with gaming)
  • Registered/licensed club (RSL, sporting or community club) → Registered and Licensed Clubs Award likely applies (not the Restaurant Award)
  • Reception centre / function venue → could be Restaurant Award or another award depending on operations (go to Step 3 + PACT). Note: some catering models (e.g., contract catering) are excluded from the Restaurant Award — confirm in PACT.
Step 2A
Hospitality-focused businesses

Does the business operate primarily as a hotel, pub, bar or venue where:

  • food is ancillary to alcohol, accommodation, gaming or venue hire; and
  • customers attend mainly to drink, stay overnight, attend functions or gamble?
Step 2B
Food-focused businesses

Is the business mainly preparing and serving food to customers, such as:

  • Café
  • Restaurant
  • Bistro
  • Casual dining venue
  • Independent takeaway business (not part of a fast-food chain or system)
Step 2C
Fast food check (important)

Is the business part of a fast food system, franchise or network where:

  • menus, pricing or branding are centrally controlled; and
  • food is prepared using standardised processes and systems?
✓ YES → Fast Food Industry Award likely applies ✗ NO → Restaurant Industry Award likely applies
Step 3
Mixed or grey-area operations

Some venues sit between awards. Ask these tie-breaker questions:

  • If alcohol sales stopped, would the business still operate normally?
  • Do most employees spend their time preparing or serving food?
  • Do customers mainly come to eat, not drink or stay overnight?
Mostly YES → Restaurant Industry Award is more likely Mostly NO → Hospitality Award is more likely
Step 4
Final check (strongly recommended)

Before setting pay rates:

⚠️ Never decide award coverage based on: what nearby cafés or restaurants pay, what payroll software defaults to, or job titles alone.

Important: In mixed businesses, different awards can apply to different employees depending on their role and where they work. Coverage must be assessed per employee, not just per venue.

Who the Restaurant Award covers (and who it doesn't) — see also Restaurant & cafés industry information

Disclaimer: Award coverage depends on the specific circumstances of the business and the employee's role. This guide provides guidance only and does not determine award coverage. Employers are responsible for confirming the correct award applies.

Commonly covered businesses

  • Cafés
  • Restaurants
  • Bistros
  • Casual dining venues
  • Some takeaway businesses (especially if food/drink is mainly eaten on the premises and/or table service is offered) — always confirm in PACT

Common roles under the Award

  • Food & Beverage Attendants (grades and supervisor classification)
  • Baristas
  • Cooks and apprentice cooks
  • Chefs and chef de parties
  • Kitchen hands
  • Supervisors working in restaurants

Who might not be covered?

You may need a different award if:

  • The business operates primarily as a pub, hotel or bar (Hospitality Award)
  • The business is part of a fast-food chain (Fast Food Award)
  • The employee is a senior manager clearly above Award level

2025–2026 pay rates overview: what you must pay

This section gives you a sanity-check snapshot of 2025–2026 minimum rates under the Restaurant Award.

Warning: Do not copy-paste rates without confirming classification, age, and penalties.

Adult – Full-time & part-time minimum rates

Exact minimum hourly rates (adult, full-time / part-time) from the Fair Work pay guide (first full pay period on/after 1 July 2025):

ClassificationHourly rateWeekly rate
Introductory level$24.28/hr$922.70 pw
Level 1$24.95/hr$948.00 pw
Level 2$25.85/hr$982.40 pw
Level 3$26.70/hr$1,014.70 pw
Level 4$28.12/hr$1,068.40 pw
Level 5$29.88/hr$1,135.50 pw
Level 6$30.68/hr$1,165.70 pw
Pay rates shown are minimum rates only and may change following Fair Work annual wage reviews or other variations. Employers must ensure they are applying the current pay guide for the relevant pay period. Download the Restaurant Award Pay Guide (PDF) for exact classification and age tables.

National Minimum Wage: Some award rates (e.g., introductory rates) may be below the National Minimum Wage; if so, the higher National Minimum Wage applies. Always ensure no employee is paid less than the legal minimum. See Minimum wages (National Minimum Wage).

Casuals

  • Casuals receive 25% casual loading
  • Casual loading does not remove penalty rates

Juniors

  • Junior rates are a percentage of adult rates
  • Rates depend on age + classification
  • Always use the junior tables in the current pay guide

How classification works under the Restaurant Award

Unlike the Hospitality Award, the Restaurant Award does not classify employees by "Level 1–6".

Instead, employees are classified using:

  • Food & Beverage Attendant Grades
  • Cook Grades
  • Chef classifications

The pay guide then assigns Level 1–6 pay rates to those classifications. You cannot reuse Hospitality Award classifications in a restaurant.

Common mistake: Calling someone a "Level 2" or "Level 3" in a café means nothing legally under the Restaurant Award.

👉 Not sure how to classify staff? See Appendix A: How classification works under the Restaurant Award

👉 Barista, kitchen hand, cook, supervisor — see Appendix B: Common café roles → likely classifications


Full-time, part-time and casual: why cafés and restaurants get caught out

Full-time

  • 38 ordinary hours per week
  • Paid leave entitlements under the NES

Part-time (high-risk area)

  • Less than 38 hours
  • Must have agreed hours and patterns in writing — roster templates can help lock in patterns
  • Working outside the agreed pattern can trigger overtime

This is one of the most common causes of underpayment in cafés.

Casual

  • 25% loading instead of paid leave
  • Regular patterns over time can trigger casual conversion rights

Casual conversion in restaurants

Under the employee choice pathway, an employee can give written notice to change to permanent employment if they believe they no longer meet the legal casual definition and have a regular and systematic pattern of hours. See Becoming a permanent employee (casual conversion).

In simple terms, a casual may give written notice if:

  • They've worked regularly for 6 months (12 months for small businesses); and
  • They believe they no longer meet the casual definition (i.e., their hours are regular and systematic, not ad hoc).

Note: Employment before 26 August 2024 isn't counted for employee choice eligibility, and special timing rules apply for some pre-26 August 2024 casuals. Some pre-26 August 2024 casuals may be unable to give notice in certain circumstances (for example, where conversion has been refused or addressed in writing in the last 6 months). See Casual conversion changes (Closing Loopholes).

If conversion happens:

  • Casual loading stops
  • Paid leave entitlements begin
  • Overtime and part-time rules apply

Important: Employers must consider casual conversion notices and can refuse only in limited circumstances.

Employers must respond in writing within the required timeframe under the Fair Work Act.

Transitional rules apply for employees hired before 26 August 2024. Get advice before refusing a request.

Disclaimer: Casual conversion rights involve specific eligibility criteria, notice requirements and refusal grounds. This section is a summary only. Employers should review the Fair Work Act and applicable transitional rules before responding to a notice.


Penalty rates & overtime (where cafés and restaurants get stung)

Restaurant Award penalties are less forgiving than many owners expect.

Penalties commonly apply for:

  • Saturdays – weekend penalty loading applies
  • Sundays – higher weekend penalty rates
  • Public holidays – significant penalty multipliers
  • Late nights – late night loading for work after certain hours
  • Early mornings – early morning penalty rates may apply

Actual penalty loads and multipliers are set out in the pay guide and award. There are multiple layers of penalties — not just weekends and public holidays. See Penalty rates (Fair Work explainer).

Not all penalties apply to every role or shift. Always check the specific award clause and pay guide tables before assuming a penalty does or does not apply.

Best practice: Check penalties by day/time span and classification in the pay guide tables each pay run. Consider using roster warnings for penalties and overtime.

Disclaimer: Penalty rates and overtime depend on classification, employment type, time worked, and award-specific rules. This guide does not list every scenario. Always refer to the award clauses and pay guide tables before calculating pay.

Overtime can trigger when (see Overtime pay explainer):

  • Part-timers work outside agreed hours
  • Daily or weekly limits are exceeded
  • Shifts exceed ordinary spans

A roster that looks "normal" can quietly create underpayment risk if not checked properly.


Allowances you can't ignore

Common Restaurant Award allowances include (see Allowances explainer):

  • Split shift allowance
  • Uniform / special clothing allowance
  • Laundry allowance
  • Meal allowance
  • Tool allowance (where applicable)

Allowance rules and dollar amounts differ from the Hospitality Award.


Leave entitlements under the Award & NES

Permanent employees receive:

  • 4 weeks paid annual leave (pro-rata for part-time)
  • Paid personal/carer's leave
  • Other NES entitlements

Casuals:

  • No paid leave
  • Receive casual loading instead

Step-by-step compliance plan for cafés & restaurants

  1. Confirm the Award applies
  2. Download the latest pay guide
  3. Classify each employee correctly
  4. Set base rates by classification and age
  5. Check penalties and overtime every pay run — award interpretation software can automate this
  6. Apply allowances where required
  7. Review casuals for conversion risk — use digital employment contracts to document agreed hours
  8. Keep time and wages records for 7 years — legible, in English, and readily accessible to a Fair Work Inspector. See Record-keeping and pay slips (Fair Work fact sheet)
  9. Issue payslips within 1 working day of paying employees. See Pay slips (when they must be given)
  10. Ensure records aren't false or misleading; don't change them except to correct an error. Tools like photo proof clock-ins help prevent disputes

Audit tip: Good records are your best defence in a Fair Work audit. Audits often focus on workplaces employing young workers, students and migrants — record-keeping and correct penalties are key.


Common mistakes in cafés and restaurants

  • Treating Hospitality Award rules as interchangeable
  • Poorly documented part-time agreements
  • Ignoring Sunday and public holiday penalties
  • Long-term casuals with permanent hours
  • Missing allowances
  • Unlawful deductions or "cashback" arrangements
  • Annualised salary arrangements that don't cover all Award entitlements

Annualised wages warning: If you use an annualised wage arrangement or salary intended to absorb Award entitlements, you must ensure it covers what the employee would have earned under the Award (including penalties, overtime and allowances) and follow the Award's annualised wage rules. This is a common audit fail point. See Employer guide: annualised wage arrangements (PDF) and Annualised wages and salaries explainer.

If you think you've underpaid someone: Check penalties, overtime, allowances and leave when calculating backpay. See I think I've underpaid my employee (steps to fix it) for the correct steps.


Final takeaways

  • The Restaurant Award is strict — especially on part-time hours and overtime
  • Classification errors are common and costly
  • Regular reviews reduce backpay risk
  • Tools and systems can help, but responsibility always sits with the employer

👉 Also read: Hospitality Award Rates 2025 – A Simple Guide for Small Businesses (for pubs, bars and hotels).

Need help staying compliant?

Award-interpreting rostering software with time and attendance and award interpretation can take the guesswork out of restaurant pay rates. Look for platforms that automatically calculate penalties, overtime and allowances based on the Restaurant Award.

Disclaimer: Using payroll, rostering or award-interpreting software does not transfer legal responsibility. Employers remain responsible for ensuring employees are paid correctly under the Award and the Fair Work Act.


Appendix A: How employee classification works under the Restaurant Award

(Restaurant Industry Award 2020 [MA000119])

Correct employee classification is one of the most common causes of underpayment in cafés and restaurants. This appendix explains how classification works, what to look for, and where businesses go wrong.

Disclaimer: Classification examples and role mappings are indicative only. Actual classification must be determined by comparing the employee's current duties, skills and responsibilities against the Restaurant Industry Award classification definitions.

Important: Job titles do not determine classification. Classification is based on duties performed, skills required, and level of responsibility.

Start here: Which classification type?

Use this quick flowchart to find the right section for your employee:

Front of House
Waiter, barista, bar staff, supervisor?
Support Roles
Office admin or stores/stock?
→ See Appendix B for Clerical and Storeperson classifications

1. How classification works (in plain English)

Under the Restaurant Award:

  • Employees are classified by role type and skill level
  • Classifications are grouped into:
    • Food & Beverage Attendant Grades
    • Cook Grades
    • Chef classifications
  • The pay guide then assigns Level 1–6 pay rates to those classifications

👉 Levels are pay rates, not job descriptions.

You must:

  1. Identify the correct classification
  2. Then apply the correct pay rate level from the pay guide

2. Food & beverage attendant classifications

These apply to front-of-house roles such as service staff, baristas and supervisors working in restaurants.

Common duties include:

  • Table service
  • Taking orders
  • Making and serving coffee
  • Point-of-sale operation
  • Customer service
  • Supervising staff (at higher grades)

Typical classification guide:

GradeIndicative characteristics
Grade 1Entry-level, basic duties, close supervision
Grade 2Experienced service, some independence
Grade 3Skilled service, may assist with training
Grade 4 (tradesperson)Specialised skilled duties in a fine dining room/restaurant
Food and beverage supervisorSupervision, training, coordination of F&B staff, or bar stock control (Level 5 pay rate)
🔎 Baristas are usually Grade 2–4, depending on skill, autonomy and responsibility.

2A. Kitchen attendant classifications

Kitchen Attendant grades apply to back-of-house employees who perform cleaning, prep and support duties but do not cook.

Common duties include:

  • Dishwashing and scullery work
  • Cleaning kitchen areas and equipment
  • Basic ingredient prep (not cooking)
  • Assisting cooks with non-cooking tasks

Typical classification guide:

GradeIndicative characteristics
Kitchen Attendant Grade 1Basic cleaning, dishwashing, simple prep work
Kitchen Attendant Grade 2Specialised non-cooking duties, or supervision of Grade 1s; requires appropriate training
Kitchen Attendant Grade 3Supervising, training and coordinating kitchen attendants; requires supervisory training

3. Cook classifications

Cook grades apply to kitchen employees who prepare food but are not trade-qualified chefs.

Common duties include:

  • Food preparation
  • Cooking menu items
  • Following recipes and systems
  • Maintaining kitchen hygiene

Typical classification guide:

Cook GradeIndicative characteristics
Cook Grade 1Basic cooking duties, limited experience
Cook Grade 2Experienced cook, works independently
Cook Grade 3Senior cook, may supervise others

Warning: Calling someone a "chef" does not make them a chef under the Award. Trade qualification and responsibilities matter.

4. Chef classifications

Chef classifications apply to trade-qualified chefs or those performing chef-level duties.

Common duties include:

  • Menu planning
  • Ordering and stock control
  • Supervision of kitchen staff
  • Quality control
  • Costing and food safety oversight

Chef levels vary based on:

  • Trade qualification
  • Size and complexity of the kitchen
  • Level of responsibility and supervision

5. What classification is NOT based on

Classification is not determined by:

  • Job title alone ("Supervisor", "Manager", "Senior Staff")
  • What the employee is called internally
  • What another café pays
  • Payroll software defaults
  • The employee's age (age affects pay rate, not classification)

These are common audit failure points.

6. Common classification mistakes in restaurants

  • Paying experienced baristas as Grade 1
  • Treating cooks as chefs without trade qualifications
  • Using Hospitality Award levels in restaurants
  • Never reviewing classifications as staff skills increase
  • Assuming casuals can be "lower graded"

Warning: Underpayments often occur over time, not immediately.

7. How to classify safely (best practice)

Before finalising a classification:

  1. Review the classification definitions in the Restaurant Award
  2. Compare the employee's actual duties, not their contract title
  3. Consider:
    • Skill level
    • Autonomy
    • Supervision of others
  4. Document your reasoning
  5. Review classifications regularly (especially after promotions or role changes)

8. Where to double-check classifications

Audit tip: Keep a short classification note per role (duties, grade, why) — this helps in audits.

Key takeaway:

Classification is about what the employee does — not what you call them.

Getting classification right:

  • Reduces backpay risk
  • Protects you in audits
  • Ensures employees are paid fairly

Appendix B: Common café roles → likely classifications

(Restaurant Industry Award 2020)

Disclaimer: Classification examples and role mappings are indicative only. Actual classification must be determined by comparing the employee's current duties, skills and responsibilities against the Restaurant Industry Award classification definitions.

Important: Classification is based on duties performed, skill level and responsibility — not job title. Use this as a starting point, then confirm against the Award's classification definitions.

Start here: Find your role type

Use this quick flowchart to jump to the right section of the table:

Question 1
Where does this person mainly work?
Front of House
What's their main role?
  • Table runner / glassy / busser → Grade 1
  • Waiter / waitress → Usually Grade 2
  • Barista → Grade 2–4 depending on skill/supervision
  • Bar attendant → Grade 2 or 3
  • Supervisor → Food and Beverage Supervisor classification
→ See Front of house roles in the table below
Support
Office or stores?
Admin/payroll → Clerical Grade 1–3 Stock/stores → Storeperson Grade 1–3
→ See Support roles at the bottom of the table

Quick "first check"

  • Introductory level is for someone new to the industry who can't yet meet Level 1 competency (intended for a limited period while the employee gains competency)
  • Food & beverage roles are classified as Food & Beverage Attendant (Grades)
  • Back-of-house cleaning/prep is usually Kitchen Attendant (Grades); cooking roles are Cook Grades

Common café roles mapping

Common café roleLikely classificationWhat to look forCommon mistake
Table runner / glassy / busserFood & Beverage Attendant Grade 1Picking up glasses, removing plates, setting/wiping tables, cleaning/tidying, handling money (basic)Paying Grade 1 when they're actually doing full waiting/service
Junior waiter / entry-level all-rounderFood & Beverage Attendant Grade 1 or 2If mostly assistance/non-customer service → Grade 1; if doing general waiting, greeting/seating, reservations, delivery duties, money handling → Grade 2Leaving experienced staff on Grade 1 because "they started as juniors"
Waiter / waitress (standard service)Food & Beverage Attendant Grade 2 (often)General waiting duties (food and/or beverage), tables, reservations, greeting/seating, delivery duties; may include liquor serviceAssuming "waiter = Grade 3" automatically. Grade 3 links to training/skill
Bar attendant / liquor serviceFood & Beverage Attendant Grade 2 or 3Dispensing/mixing liquor and general waiting can be Grade 2; Grade 3 requires the "appropriate level of training" and may include assisting in training/supervisionForgetting that Grade 3 is tied to training/skill requirements
Senior waiter / team leader (no formal supervision)Food & Beverage Attendant Grade 3 (often)General waiting + assisting in training/supervision of lower grades (informal leadership)Calling someone a "supervisor" in the roster without paying Supervisor classification
Food & Beverage Supervisor / Shift SupervisorFood & Beverage Attendant SupervisorResponsibility for supervision, training and coordination of F&B staff, or bar stock controlPaying Grade 3/4 when they're actually coordinating staff and training
Fine-dining / high-skill service roleFood & Beverage Attendant Grade 4Specialised skilled duties in a fine dining room/restaurantUsing Grade 4 just because it "sounds senior" (it's tied to specialised fine dining duties)
Kitchen hand / dishie / sculleryKitchen Attendant Grade 1Kitchen/scullery cleaning, cleaning utensils, assisting cooks, ingredient assembly/prep, pantry dutiesPaying as Kitchen Attendant 1 when they're supervising others
Senior kitchen hand / prep handKitchen Attendant Grade 2Specialised non-cooking duties OR supervision of kitchen attendants; requires appropriate trainingTreating "prep" as cooking when it's still non-cook duties
Kitchen hand supervisor / leading handKitchen Attendant Grade 3Supervising, training and coordinating kitchen attendants; requires training incl. supervisory coursePaying Grade 2 when they're coordinating the kitchen hand team
Breakfast cook / short order cook (not trade-qualified)Cook Grade 1Cooking breakfasts/snacks; may include baking/pastry/butchering duties; "doesn't have appropriate level of training"Calling them a "chef" without trade qualification/chef duties
Cook (experienced; baking/pastry/butchery; independent)Cook Grade 2Appropriate training + cooking duties such as baking/pastry/butcheringPaying Grade 1 because the menu is "simple." Training/independence matters
Trade-qualified commisChef classification (entry level)Trade-qualified commis chef; completed apprenticeship/trade testClassifying as Cook Grade when they're trade-qualified chef level
Demi chef (trade-qualified; some supervision/training)Chef classification (trade-qualified)Demi chef equivalent; trade-qualified; general/specialised cooking and/or supervises/trains other cooksClassifying as Cook Grade when they're trade-qualified chef level
Chef de partie / section leadChef classification (trade-qualified)Chef de partie equivalent; trade-qualified; specialised duties + supervision/training; ordering/stock controlClassifying as Cook Grade when they're chef level with section responsibility
Office admin / payroll assistantClerical Grade 1–3Grade 1 = basic routine tasks; Grade 2 = general clerical/data entry; Grade 3 = secretarial duties (training)Paying under hospitality/café rates when they're clearly clerical
Store room / stock receiverStoreperson Grade 1–3Grade 1 = receives/stores goods/cleans store; Grade 2 = forklift/more complex duties; Grade 3 = quality control/supervisingTreating stock control as "just part of a waiter role" if it's a dedicated stores role

Two "gotchas" worth calling out

Baristas: Why there isn't a single "barista grade"

The Fair Work restaurant/café industry info lists baristas as covered by the Restaurant Award in mainly eat-in cafés, but the award classification you use is still Food & Beverage Attendant (Grades) — it depends on whether the role is basic service vs skilled duties vs training/supervision.

Grade 2 → Grade 3 is not just "experience"

The award framework ties Grade 3 to the appropriate level of training, and the award text includes a note about training/qualification expectations when moving up.

Key takeaway:

Use this table as a starting point — but always check the actual duties against the Award's classification definitions before setting pay rates.


About this guide: This guide is not published by, endorsed by, or affiliated with the Fair Work Ombudsman or Fair Work Commission.

This guide applies to Australian workplaces only and is based on federal workplace laws. Different rules may apply under state systems or for excluded employees.