Overview of the Food, Beverage and Tobacco Manufacturing Award [MA000073]

If you employ people in food, drink, or tobacco manufacturing, this Award probably applies to your business. It outlines the rules for pay, hours, leave, and other workplace entitlements. And you need to get them right.

The details are complex. Because of this, mistakes are common. And they can be seriously costly, leading to backpay, fines, or action from Fair Work. We put together this overview to make understanding the Food, Beverage, and Tobacco Manufacturing Award easier. It covers the key points you need to know to help you stay compliant without having to wade through jargon.

This information is current as of 22/09/2025. Award conditions and rates can change, so always check the latest Food, Beverage, and Tobacco Manufacturing Award for the most accurate details.

Food, Beverage, and Tobacco Manufacturing Award coverage

The FBT Manufacturing Award doesn’t apply to everyone who works with food or drink. Its rules are specific to people involved in the manufacturing side of the food, beverage, and tobacco products. The award outlines exactly which jobs fall under it and which don’t, including where labour hire businesses are involved.

Covered work and roles

The award covers employees involved in the manufacturing or production of food, beverages, or tobacco products. This includes those who:

• Prepare, cook, bake, ferment, brew, preserve, mill, gut, fillet, freeze, and distil raw food or tobacco materials.

• Make pet food or stock feed.

• Bottle, can, package, label, pallet, store, and dispatch those products.

• Clean or sanitise machines, tools, or equipment used in the production process.

• Work through labour hire businesses inside food, beverage, and tobacco manufacturing facilities.

Who the award doesn’t cover

Even if someone handles food, beverages, or tobacco products, the Food, Beverage, and Tobacco Manufacturing Award won’t always apply. These are the common exclusions:

• Retail, fast food, and hospitality staff: Employees working in retail bakeries, fast-food outlets, cafés, or hospitality-style businesses.

• Sales and admin staff: Employees in sales, clerical, or administrative roles who don’t do direct manufacturing work.

• Delivery and transport workers: Employees whose primary role is driving or transporting goods.

• Employees covered by another award or agreement: Employees that fall under another Modern Award, an Enterprise Agreement, or a State reference Award under the Fair Work Act.

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Employment types under the Food and Beverage Award

The award recognises three types of employees: full-time, part-time, and casual.

Full-time employees

• Work an average of 38 hours per week.

• They're ongoing and permanent employees, with the full range of leave and public holiday entitlements.

Part-time employees

• Work less than 38 hours per week on a permanent basis.

• Their hours, days, and start/finish times must be in writing.

• They receive the same entitlements as full-timers, but on a pro rata basis.

Casual employees

• Have no guaranteed hours and are engaged shift to shift.

• They don’t receive paid leave but get a 25% casual loading on their base pay rates.

• If they work a regular pattern of hours for at least six months, they may have the right to request conversion to permanent employment under the National Employment Standards (NES).

FBT Award ordinary hours and rostering

Here's when work can happen and how to handle breaks, rosters, and shift lengths under the Food, Beverage, and Tobacco Manufacturing Award:

Standard weekly hours

• A full-time employee works an average of 38 hours a week. Choose one of the following setups and stick to it:

  • 38 hours over five days, or

  • 38 hours over six days, or

  • an average of 38 hours over four weeks.

• If you average over four weeks, plan at least one rostered day off (RDO) in the cycle and schedule it in advance.

• Agree on the arrangement with the employee. And don’t switch models without a new agreement.

Part-time staff follow the same rules, but on a pro rata basis. As mentioned, casuals don’t have guaranteed weekly hours, but the 38-hour standard work week still matters. This is because it's the trigger for overtime. If a casual employee works over 38 hours in a week, 76 in a fortnight, or over 10 hours in a single shift, overtime applies.

Ordinary hours for day workers

• Day workers usually work their ordinary hours between 6:00 a.m. and 6:00 p.m., Monday to Friday.

• By agreement, you can:

  • include Saturday and Sunday as ordinary days (Saturday paid at 150%, Sunday at 200%), and/or

  • shift the spread of hours by up to one hour earlier or later.

• Any work outside the agreed spread counts as overtime. This is unless the employee is a shiftworker.

Shift lengths and breaks

• Maximum shift length: Eight hours (unless you have a facilitative agreement in place under the award).

• Minimum engagement: Four consecutive hours for part-time and casual employees. This can be reduced to three hours. But only if the employee requests it in writing and the employer agrees.

• Break between shifts: All employees must have a 10-hour break between finishing one shift and starting the next.

Breaks

Meal breaks

• If someone works more than five hours, give them a 30-minute unpaid meal break no later than the five-hour mark.

• If they work through the meal break, you need to pay overtime until the meal break is taken.

• You can split the meal break into two paid 20-minute breaks if both sides agree in writing.

• Continuous shiftworkers get one paid 20-minute meal break per shift (it counts as time worked).

Paid rest breaks

• Under four hours: No paid rest break.

• Four to eight hours: One 10-minute paid rest break.

• Over eight hours: Two 10-minute paid rest breaks (one in each half of the shift).

Rostering rules

• Publish rosters at least one week in advance with days, start/finish times, and breaks.

• For one-off changes, give one weeks’ notice. This is unless the employee agrees to less (but it should never be less than 48 hours).

• For ongoing changes to an employee’s regular hours or pattern, you need to consult them first. Explain the proposal and start date, invite feedback (including family/caring impacts), and consider that feedback before you make it official.

Food and Beverage Award pay rates

What you pay someone depends on their classification, age, whether they're casual or permanent, and which rates and penalties apply. It's complicated, especially with different roles, shifts, and entitlements at play.

Payroll software that can interpret modern awards can help massively in avoiding expensive mistakes.

Ordinary rates

The FBT Award splits jobs into levels. These levels start at Level 1 for entry roles and go up to Level 7 for higher-skilled and supervisory positions. Each level has its own ordinary hourly rate.

Here are a few examples of adult full-time rates (as of 1 July 2025):

• Level 1 (entry): $24.28 per hour / $922.70 per week

• Level 3: $25.85 per hour / $982.40 per week

• Level 5: $28.12 per hour / $1,068.40 per week

Juniors and apprentices

• Juniors (under 21) receive a percentage of the adult rate for their level. For example, a 17-year-old at Level 1 earns 70% of the adult Level 1 rate.

• Apprentices are paid according to separate tables that consider age, training year, and whether they’ve completed Year 12. For example, a first-year apprentice aged 18 who has completed Year 12 must receive the Year 12 first-year apprentice rate.

Higher duties

If an employee performs work at a higher level than their usual classification, you must pay them the higher level rate for the time they perform those duties. If they perform higher duties for most of a shift, pay the higher rate for the whole shift. If they do it for a full week, pay the higher rate for that week.

Casuals

As mentioned, casual employees get 25% extra on top of the base rate. This creates the 'casual ordinary hourly rate,' which is also the basis for calculating their penalties and overtime.

Overtime and penalty rates

Employees earn overtime when they work more than their ordinary hours or outside the agreed spread of hours. This is unless a shiftwork arrangement applies.

Day workers and non-continuous shiftworkers

• Pay 150% of their ordinary hourly rate for the first three hours of overtime.

• Pay 200% for any overtime they do beyond three hours.

• On Saturdays, use the same rule: 150% for the first three hours, then 200% after that.

Continuous shiftworkers

Continuous shiftworkers earn 200% of the ordinary hourly rate for every hour of overtime they work.

Sundays and public holidays

• Pay 200% for overtime an employee does on a Sunday.

• Pay 250% for overtime an employee does on a public holiday. A minimum of three hours’ pay applies on a public holiday. This is true even if the shift is shorter.

Shift penalties

When employees do rostered work outside normal day-hours (i.e. work an early morning shift or afternoon or night shift), the award requires special rates called shift loadings. These rates depend on whether shifts are continuous, non-continuous, or permanent.

• If a shift starts between 4:00 a.m. and 6:00 a.m.:

  Pay 112.5% of their ordinary hourly rate.

• If a shift is an afternoon or night shift (non-continuous):

  Pay 115% of their ordinary hourly rate.

• If an employee works a permanent night shift (night shifts only, no rotation):

  Pay 130% for all ordinary hours in that shift.

Also:

• Don't add these shift penalties on top of weekend or public holiday penalties. You must pay the higher of the rates that apply.

Other considerations

Employees must also get enough rest between shifts. If they don’t, overtime rates continue until they can take a proper break.

Payment of wages

You must pay your employees weekly or fortnightly. You and your employees can also agree to a three-weekly, four-weekly, or monthly cycle if the majority of staff are for it.

You can pay by EFT, cash, or cheque. If payday falls on a public holiday or rostered day off and you pay by cash or cheque, pay on the next working day.

When someone leaves, you need to pay everything you owe them on their last day or the next working day. This includes wages, annual leave, and any other award or NES entitlements. State and territory laws decide when you need to pay out long service leave.

Food and Beverage Manufacturing Award allowances

On top of wages, employees under this award sometimes have a right to extra payments called allowances. Here are some of the main ones:

• Cold work allowance: Pay $0.79 per hour when an employee works in areas below 0°C.

• First-aid allowance: Pay $21.26 per week if an employee holds appropriate first-aid qualifications and you appoint them as the first-aid officer.

• Leading hand allowance: Pay between $46.76 and $88.92 per week. The exact amount depends on how many employees they directly supervise.

• Dirty work allowance: Pay $0.82 per hour when an employee performs dirty, dusty, or offensive work.

• Uniform and laundry: If you require your employees to wear a uniform but don’t supply it, you must reimburse them for the cost. The same applies if you don’t launder the uniform. Then you need to cover the reasonable cost of washing it.

• Excess travelling and fares: If you require a start or finish at a job away from the employee's usual workplace, you must pay:

  • Travelling time that goes beyond their normal commute.

  • Any extra fares they incur.

  • If they use their own car, cover what the fares would have cost unless they already receive a regular vehicle allowance.

Important: You must list each allowance as a separate line on the employee's payslip. Don’t roll them into wages or hide them in a lump sum.

Superannuation under the FBT Award

• All eligible employees must receive superannuation contributions under the Superannuation Guarantee (SG).

• The SG rate is 12% of an employee’s ordinary time earnings. You must pay it into a complying super fund. You must do this at least once a quarter. However, most employers in the food, beverage, and tobacco manufacturing industry pay it with each pay run.

• During onboarding, you must give new employees a Standard Choice Form. If they nominate a fund, pay into it. If they don’t, check with the ATO for their stapled fund. If no stapled fund exists, pay into your default fund.

• For employees under 18, you only pay super if they work more than 30 hours a week. The old $450 per month threshold doesn't apply anymore.

• If you pay late or miss a payment, you lose the tax deduction and may face penalties from the ATO.

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Leave and public holidays under the Food, Beverage, and Tobacco Manufacturing Award

Annual leave

Employees get annual leave under the NES. Four weeks for most full-time and part-time staff (pro rata). And five weeks for shiftworkers who regularly work on Sundays and public holidays. Casuals don’t get annual leave.

When employees take annual leave, you must pay them what they would've earned for their ordinary hours. This includes loadings and allowances that apply 'for all purposes' under the award. On top of that, they also get annual leave loading.

• Leave loading:

  • Day workers get 17.5% of ordinary pay or weekend penalties (whichever is higher).

  • Shiftworkers get 17.5% or the relevant shift penalties (whichever is higher).

Annual leave also comes with rules for excessive accruals, leave in advance, cashing out, and shutdowns.

• Excessive leave: More than eight weeks accrued (10 for shiftworkers) counts as excessive. You or your employees can raise it. If you can’t agree, you may direct leave, with safeguards around minimum balances and timing.

• Leave in advance: Both sides can agree in writing to take leave before it accrues. If the employee leaves before earning it, you can deduct the balance.

• Cashing out: Employees can cash out up to two weeks of leave per year. This is as long as they keep four weeks in their balance. Each cash-out requires its own signed agreement.

• Shutdowns: You can require staff to take leave during a shutdown (like Christmas). But you must give them 28 days’ written notice. Where leave is short, staff can take it in advance or agree to unpaid leave.

Other types of leave

• Personal/carer’s leave: Full-time employees get 10 days of paid personal/carer’s leave

  each year. Part-time employees get the same entitlement on a pro-rata basis. Casual employees don't get paid personal/carer’s leave.

• Compassionate leave: Full-time and part-time employees get two days of paid compassionate leave. They can take it each time a close family or household member dies, or has a life-threatening illness or injury. Casual employees also get two days of compassionate leave. However, it's unpaid.

• Parental leave: Parental leave comes directly from the NES. It allows up to 12 months unpaid leave, with a right to request another 12 months.

• Community service leave: Employees can take community service leave for activities like jury duty or voluntary emergency service. Jury duty attracts pay for the first 10 days for full-time and part-time employees. The rest of the time is unpaid (casuals are unpaid throughout).

• Family and domestic violence leave: Under the NES, every employee gets 10 days of paid family and domestic violence leave each year. You must keep all related information strictly confidential and handle requests sensitively.

Public holidays

Employees who fall under this award get public holiday entitlements under the NES. If they work on a public holiday, you must pay them public holiday rates set out in the Food, Beverage, and Tobacco Manufacturing Award.

You and an employee can agree to substitute another day (or part-day) for a public holiday.

If a rostered day off falls on a public holiday, you must provide one of the following:

• 7.6 hours’ pay at the ordinary hourly rate,

• 7.6 hours added to annual leave, or

• a substitute day off.

FBT Award compliance made simple with Rippling

Managing Food, Beverage, and Tobacco Manufacturing Award compliance manually is risky and extremely time-consuming. This is especially true when your workforce comprises a mix of full-timers, part-timers, and casuals. They all earn different rates and fall under different rules within the award. Thankfully, with Rippling in your corner, there's no need to lose sleep over any of this.

Rippling is an all-in-one workforce management platform. It connects HR, Payroll, and IT in one system. And it's all based on a single source of truth. Gone are the days of needing separate tools for rosters, leave, and pay. It’s all there, in one platform.

You can set correct classifications, track hours, and apply the right rules for full-time, part-time, and casual staff automatically. It keeps employee records, contracts, and leave balances up to date while also making onboarding simple. Payroll then takes care of the rest. It applies award rates, overtime, penalties, super, and leave loading. And because time and attendance connect directly to payroll, you never have to enter hours twice!

Essentially, it’s award compliance without the stress. It means less admin, fewer manual errors, and no time spent second-guessing and hoping for the best.

Food, Beverage, and Tobacco Award FAQs

Are employees covered under the Food, Beverage, and Tobacco Award if they work in hospitality?

No. This award doesn’t apply to people working in the hospitality industry. Even if your business handles food or drinks, like a café, bar, or restaurant, those workers fall under different awards. Most fall under the Hospitality Industry (General) Award. But restaurant workers may come under the Restaurant Industry Award instead. It really depends on the type of business and the work being done.

Does the FBT award cover employers who also operate warehouses or retail outlets?

The award may cover employers in food and beverage manufacturing. But not for every part of the business. If you run warehousing or retail operations alongside your manufacturing, those parts of the business likely fall under a different award. For example, the Storage Services and Wholesale Award or the General Retail Industry Award.

Do seafood processing workers fall under the Food, Beverage, and Tobacco Manufacturing Award?

No. They fall under the Seafood Processing Award. It’s a bit confusing. Seafood processing sounds like it should sit under general food manufacturing. But it doesn’t. The industry has its own award with its own set of rules. So if your business fillets, smokes, packs, or processes fish or shellfish, you may need to follow the Seafood Processing Award. This is true even if the work looks similar to other food production jobs.

What is the dispute resolution process under the FBT Award?

The award includes a clear dispute-resolution process. First, you and the employee need to try to resolve the issue at the workplace level. If you can’t agree, either party can take it to the Fair Work Commission. Both parties must continue working as usual during the process (i.e., 'work as directed') unless it’s unsafe.

You have to follow the steps the Food, Beverage, and Tobacco Award outlines. You can’t just skip straight to formal action.

What’s the easiest way to stay compliant with the Food and Beverage Manufacturing Award?

The Food, Beverage, and Tobacco Manufacturing Award comes with a lot of (fast) moving parts. When managing all that manually, it’s pretty easy to miss something. That’s why a lot of businesses turn to HR and payroll software that’s built for Australian modern award compliance.

Consider Rippling's payroll software. It can apply the right pay rates, track hours, calculate overtime and super, and keep everything in one place. The result? No more second-guessing every payslip.

Can you employ people under the age of 18 in the tobacco manufacturing industry?

It depends on the role and where your business is. The Food, Beverage, and Tobacco Manufacturing Award doesn’t stop you from hiring someone under 18. But tobacco work is a bit of a grey area. Some states have specific laws that ban minors from handling tobacco products altogether. Others might allow it under strict conditions. For instance, having a supervisor present or getting parental consent.

Thinking of hiring someone under 18 for a role in the tobacco manufacturing industry? Check your state or territory laws first. They’ll have the final say.