Employment laws set out entitlements employers must provide, with eligibility depending on the type of employment.

These minimum entitlements are outlined in state (WA) and federal laws and awards, covering wages, maximum hours, and leave (sick, annual, carer’s, parental).

 

Minimum wages

Minimum wages are set by legislation and awards and must be complied with.

 

Federal awards

The federal Pastoral Award 2020 applies to all national system employers in the dairy industry. This award creates 6 separate classifications for dairy farm employees with different rates of pay for each classification which reflect the experience and skills of employees.

 

Farm and Livestock Hand Level
FLH1	Dairy operator grade 1A	Less than 6 months ‘experience in the industry
FLH2	Dairy operator grade 1A	6 to 12 months’ experience in the industry
FLH3	Dairy operator grade 1B	More than 12 months’ experience in the industry
FLH5	Dairy operator grade 2
FLH7	Senior dairy operator grade 1
FLH8	Senior dairy operator grade 2

National minimum wage for employees not covered by an award

Employers who are not bound by awards must pay at least the national minimum wage which is adjusted and published by the Fair Work Commission.

 

State awards – Western Australia

From 1 July 2024, the WA Farm Employees Award covers the dairy industry in Western Australia. It applies to dairy farmers outside the federal system due to their business structure and sets the WA state minimum wage as the rate for all classifications.

For more information, visit the State Industrial Laws.

 

State minimum wage – Western Australia

WA has industrial laws which lay down a minimum wage which is periodically adjusted and published by the Western Australian Industrial Relations Commission. These rates apply when award rates are less favourable to the employee or when there is no award. For more information, visit WA Farmers Federation website or the State Industrial Laws.

 

Maximum hours of work

 

Hours of work and awards

Most awards specify ordinary hours of work and the days on which those hours are to be worked. Penalty rates usually apply to hours worked outside these hours or days.

The federal Pastoral Award 2020 applies to all national system employers in the dairy industry. The Pastoral Award 2020 provides for ordinary hours of work to be an average of 38 hours per week over 4 consecutive weeks.

 

Hours of work and federal industrial laws

The National Employment Standards (NES) specify that weekly hours of work must not exceed 38 hours plus reasonable additional hours. What is reasonable for additional hours is determined by a test which balances the needs of the business with the personal, family and occupational health and safety needs of the employee.

Under the NES, award/agreement free employers and employees can agree in writing that the employee’s hours of work will be averaged over a specified period of no more than 26 weeks providing the average does not exceed 38 hours per week. The averaging of hours provides more flexibility for employers whose business may have seasonal highs and lows. The agreement to average hours in this way must be recorded in a workplace agreement or in writing as part of a written contract of employment.

 

Hours of work and state industrial laws – WA

For maximum hours of work and minimum rates of pay in WA, read more about WA state laws.

 

Leave

 

Annual leave

Annual leave entitlements are laid down in awards and state (WA) and federal industrial laws which apply when there is no award or if the award term is less favourable. The National Employment Standards (NES) provide for annual leave for all employers in the dairy industry in Australia except non-national system employers in WA – read more about WA state laws.

Awards may provide for annual leave entitlements which apply in addition to the NES. The Pastoral Award 2020 provides for an annual leave loading of 17.5% to be paid to employees when taking annual leave and for annual leave which is paid out on termination.

The NES provide for four weeks paid annual leave for each year of service. Annual leave accrues progressively throughout the year and from year to year. Part-time employees also accrue annual leave on a pro-rata basis depending on the hours they work. Casual employees do not receive annual leave as the casual loading compensates them for this entitlement.

Payment for annual leave is calculated on what the employee would have received for the employee’s base rate of pay for ordinary hours of work. The employee’s base rate of pay does not include the following:

• incentive based payments and bonuses
• loadings
• monetary allowances
• overtime or penalty rates

For employees in the dairy industry covered by the Pastoral Award 2020, the ordinary hours of work are 152 hours over four consecutive weeks.

 

Payment of accrued annual leave upon termination of employment

Any annual leave which has accrued must be paid out if the employment is terminated.

 

Annual leave and the Pastoral Award 2020

The Pastoral Award 2020 specifies that payment for annual leave is the wages the employee would have received for ordinary hours of work had they not been on leave.

 

Leave loading

Annual leave loading is an award entitlement so it only applies to award employees. The Pastoral Award 2020 provides for a 17.5% annual leave loading to be paid when leave is taken and upon termination if any annual leave is paid out.

 

Public holidays

If a public holiday falls when an employee is on annual leave, the employee is taken not to be on paid annual leave on that day. Instead the NES about public holidays will apply and the employee will be entitled to be paid for the public holiday at the employee’s base rate of pay for ordinary hours of work.

 

Other forms of leave taken while on annual leave

If an employee is eligible for another form of leave, other than unpaid parental leave, while on annual leave, or is entitled to be absent from work on community service leave, the employee is taken not to be on annual leave during that time. For instance, if the employee is eligible for personal leave or carer’s leave while on annual leave, the NES about payment for personal/carer’s leave will apply.

Sick leave/personal leave/carer’s leave

Sick leave, personal leave and carer’s leave entitlements are laid down in awards and state (WA) and federal industrial laws. Part-time employees accrue this form of leave on a pro-rata basis.

Casual employees are not entitled to paid sick leave, paid personal leave or paid carer’s leave as the casual loading is calculated to include a component to compensate them for loss of these leave entitlements.

 

The National Employment Standards (NES) and personal leave/carer’s leave

Personal/carer’s leave is provided for in the NES. The NES applies to all employers in the dairy industry in Australia, except non national system employers in WA – read more about WA state laws and the National Employment Standards.

The National Employment Standards (NES) and parental leave

The National Employment Standards provide for parental leave. Under the NES, parental leave is unpaid leave for parents for the birth or adoption of a child. It applies to both parents but, except for a period of periods of up to 8 weeks, must be taken at different times. The NES about parental leave applies to all employers in Australia, including non-national system employers in WA.

Meal breaks and rest breaks

Under the Fair Work laws meal breaks and rest breaks are an award requirement. The Pastoral Award 2020 provides for:

• An upaid meal break of not less than 30 minutes and not more than one hour to be taken not later than 5 hours after commencement of work.
  All work performed during a recognised meal break must be paid at double time rates with the payment continuing until the employee receives the meal break.
• A paid rest break of at least 10 minutes each morning.

The employer and the individual employee can agree that the meal break be taken at another time. If employers and employees agree, a further unpaid rest break can be taken in the afternoon.

 

Award-free employees

Award-free employees should also be provided with rest breaks as part of an appropriate occupational health and safety system in the workplace. It is suggested that the award provisions outlined above should also be applied for non-award employees.

Right to disconnect

From 26 August 2025, all employees have the right to refuse to monitor, read, or respond to contact outside their ordinary working hours, unless the refusal is unreasonable. This applies to contact from both employers and third parties. The Pastoral Award 2020 has been amended to include this right to disconnect in clause 6A.

For more information visit Right to disconnect – Fair Work Ombudsman or What is the right to disconnect | Fair Work Commission.

 

What is contact?

Contact may be calls, emails, texts, social media and messaging services or in person.

 

What is unreasonable?

The right to disconnect is a Workplace Right and employees may bring legal proceedings against an employer if they feel that they have been treated adversely.

When deciding if an employee’s refusal to respond is unreasonable, factors include:

• the reason for contact
• how the contact is made and its level of disruption
• whether the employee is compensated for being available or for extra hours
• the employee’s role and responsibilities
• the employee’s personal circumstances, e.g. caring duties
• any other relevant matters

It is not unreasonable to refuse unless the contact is legally required.

In farming, including dairy, this rarely arises as work is done on-site. For example, after-hours contact to rearrange a shift needed overnight would generally be reasonable.

For managers, contracts should state that reasonable additional hours are expected and covered by salary.

Employers and employees should discuss expectations about after-hours contact at the start of employment (or as soon as possible).

The right to disconnect is a Workplace Right, and employees may take legal action if treated adversely for exercising it.