Pastoral Award 2020
On this page
- Hours of work
- Requests for flexible working arrangements
- Consultation about changes to regular rosters
- Classifications and pay rates
- Public holidays
- Annual leave
- Personal / carer’s leave and compassionate leave
- Family and Domestic Violence Leave
- Meal breaks and rest breaks
- Notice of termination
- Annualised salaries
- Individual flexibility agreements
- Transitional arrangements
The Pastoral Award 2020 is a modern award made under the Fair Work Act. It commenced on 1 January 2010 and applies to all national system employers. Since that date, it has been the only federal award covering the dairy industry (together with its 2010 predecessor).
In Western Australia, if your business is a sole trader or partnership, federal industrial laws — including the Pastoral Award 2020 — do not apply. These businesses are considered non-national system employers, and all dairy farmers in this category are award free.
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Visit the Fair Work Commission website and download the latest version of the Pastoral Award 2020. |
If you want to know more about which award applies to your business go to which award?
National system employers should also refer to the National Employment Standards to understand how this impacts upon their application of this award.
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There must be a copy of the award at the workplaceThe Pastoral Award 2020 requires employers to keep a copy of the award on a noticeboard at or near the workplace or electronically, whichever is more easily accessible by employees. |
Hours of work
Ordinary hours
Under the Pastoral Award 2020, ordinary hours are 152 hours over a four-week period. This applies equally to full-time and casual employees. For part-time employees, ordinary hours are those agreed at the commencement of employment.
The Award also sets minimum shift requirements:
- Part-time employees must be rostered for at least 3 hours per shift, or 2 hours if they are full-time secondary school students aged 18 or under.
- Casual employees are entitled to a minimum payment of 3 hours each time they attend for work, or 2 hours if they are full-time secondary school students aged 18 or under.
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Ordinary hours and leaveLeave such as annual leave personal /carers’ leave and public holiday leave is counted in the calculation of the 152 ordinary hours of work, even though no work is undertaken on these occasions.
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Overtime
Under the Pastoral Award 2020, overtime applies once an employee has worked 152 hours in a four-week period. Overtime is paid at:
- Time and a half for additional hours,
- Double time for work performed on Sundays, except
- Feeding and watering stock on Sundays, which is paid at time and a half (note: milking is not considered feeding and watering stock).
For casual employees, overtime is calculated the same way as for permanent staff. Overtime is not payable until 152 hours are worked in a four-week cycle, regardless of the day the work occurs.
For part-time employees, overtime applies to any hours worked in excess of their agreed part-time hours.
The Overtime & Ordinary hours fact sheet provides worked examples of overtime calculations.
See the tip below – Public Holiday: Calculation of penalty rates for casual employees.
Time Off Instead of Overtime (previously time off in lieu – TOIL- or ‘banked hours’).
As of the first pay period on or after 27 November 2017 award provision for TOIL changed, the following applies:
- A formal written ‘Agreement’ must be entered into using the Schedule E template (from Pastoral Award 2020)
- The ‘Agreement’ must be kept as an employee record.
- Each ‘Agreement’ must state:
- The employer and employee agree to TOIL instead of overtime payment.
- TOIL must be taken within 6 months of the overtime being worked at a time agreed between employer and employee.
- If TOIL is not taken within 6 months, the employer must pay the employee in the next pay period for the accrued hours at the rate that applied when the overtime was worked (unless paid out earlier by agreement).
- Either party may terminate the agreement in writing at any time.
- Overtime worked after the agreement is terminated must be paid at overtime rates.
- The time off instead of over time is provided on an hour-for-hour basis (not at overtime penalty rates).
- On termination of employment, any accrued time off instead of overtime must be paid out at the overtime rates that applied when the overtime was worked.
- Employers MUST keep records of:
- the number of overtime hours worked
- when those hours were worked, and
- an updated record of the employee’s overtime balance (banked hours).
- Employers must not exert undue influence or pressure on an employee to make or not to make an agreement to take time off instead of overtime.
Note: Accurate record-keeping is critical, particularly to track Sunday hours, as double time applies only after 152 hours have been worked in a 4-week period.
Template Agreement
The Pastoral Award 2020 provides a pro forma “Agreement” in Schedule E at the end of the award – download Schedule E template (from Pastoral Award 2020).
Whilst it is not essential that the pro forma ‘Agreement’ be used, (the Award provides that an exchange of emails or other electronic means can be used instead) it is strongly recommended that employers make an electronic version of the Schedule E and use it to ensure compliance.
Requests for flexible working arrangements
Read more about requests for flexible working arrangements.
Consultation about changes to regular rosters
Under Clause 27 of the Pastoral Award 2020, employers must consult with employees before changing regular rosters or ordinary hours of work.
- Consultation is required for employees with regular hours. It does not apply to employees with irregular, sporadic, or unpredictable hours.
- What consultation involves:
- Employees (and, if relevant, their union representatives) must be given information about the proposed change, including details and the start date.
- Employees must be asked for their views on the change and its impact, including family responsibilities.
- Employees must be given a genuine chance to influence the decision.
- The employer must consider employee views before deciding whether to proceed.
Classifications and pay rates
The federal Pastoral Award 2020 creates six separate classifications for dairy farm employees with different rates of pay for each classification. The classifications reflect the experience and skills of employees or the tasks they perform.
The classifications are:
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 |
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UPDATED June 2025: Determining employee classifications and pay ratesClassifications and the latest pay rates are available in our pay rates section. |
For pay rates for trainees, see Miscellaneous Award – Schedule E.
Public holidays
Public holidays are provided for in the National Employment Standards (NES).
In addition to the NES, the Pastoral Award 2020 provides for farm and livestock hands to receive double time if they work on a public holiday.
If a public holiday falls during an employee’s annual leave, that day is not counted as annual leave. Instead, under the NES, the employee must be paid for the public holiday at their base rate of pay for ordinary hours of work.
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Calculation of penalty rates for casual employees
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Substitution of other days
The Pastoral Award 2020 allows for employers and individual employees or employers and the majority of employees to agree to substitute an alternative day for the public holiday.
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Pay the correct rate on public holidaysOnly one penalty applies at the one time. If a public holiday falls when an employee is on overtime – you pay the public holiday rate (200%) on the base rate, not the overtime rate. |
Annual leave
Annual leave is provided for in the National Employment Standards.
The Pastoral Award 2020 provides for the employee to be paid the wages they would have received for ordinary hours had they not been on annual leave. The Pastoral Award 2020 also provides for annual leave payment to be made before the employee goes on leave.
Annual leave loading
In addition to the NES the Pastoral Award 2020 provides for payment of a 17.5% annual leave loading for all annual leave which is taken as leave or paid out upon termination of employment.
Excessive leave – Request by employees for leave – Pastoral Award employees
Under the Pastoral Award 2020, rules on excessive annual leave changed on 29 July 2017.
- What is excessive leave?
Annual leave is considered excessive if an employee has accrued more than 8 weeks’ paid annual leave. - Employer and employee discussions:
If excessive leave is accrued, the employer and employee should first try to agree on how and when the leave will be taken. - If no agreement is reached:
An employee may give the employer written notice to take leave if: - the leave has been accrued for more than 6 months, and
- the employee has not already been directed by the employer to take leave.
- Conditions on the employee’s notice:
- Leave must be taken in periods of at least 1 week.
- The employee must retain at least 6 weeks’ paid annual leave after the leave is taken.
- At least 8 weeks’ notice (and no more than 12 months’ notice) must be given.
- An employee can require no more than 4 weeks of leave from their excessive balance in any 12-month period.
Directing employees to take annual leave – Pastoral Award employees
Under the Pastoral Award 2020, rules on excessive annual leave changed on 29 July 2017.
- What is excessive leave?
Annual leave is considered excessive if an employee has accrued more than 8 weeks’ paid annual leave. - Discussions first:
If excessive leave is accrued, the employer and employee should first try to agree on how and when the leave will be taken. - If no agreement is reached:
The employer may direct the employee to take one or more periods of paid annual leave. - Conditions on employer directions:
- There must have been a genuine attempt to reach agreement before issuing the direction.
- The employer must give at least 8 weeks’ notice and no more than 12 months’ notice.
- The directed leave must be for a period of at least 1 week.
- The employee must be left with at least 6 weeks’ paid annual leave after the directed leave is taken.
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Excessive leaveThe above procedures only relate to the taking of “excessive leave” (when an employee has accrued more than 8 weeks’ paid annual leave) and where employers and employees cannot reach an agreement about how the leave should be taken. Remember that the National Employment Standards (NES) provide that employers cannot unreasonably refuse to agree to an employee taking paid annual leave. This applies even if the employee’s leave balance will be reduced below 6 weeks. |
Annual leave in advance – Pastoral Award employees
As of 29 July 2016, agreements for Pastoral Award 2020 employees to take annual leave in advance of it accruing must be in writing.
The agreement must state the amount of leave to be taken in advance and the date of its commencement.
Both the employer and the employee must sign the agreement and If the employee is under 18 years of age a parent or guardian must also sign the agreement.
Use this template for an agreement to take annual leave in advance. This agreement must be kept with the employee’s employment records.
If the employment is terminated before the employee has accrued an entitlement to the amount of the leave taken in advance, the employer can deduct the amount owing from the employee’s termination pay.
Cashing out of annual leave – Pastoral Award employees
As of 29 July 2016, employers and employees covered by the Pastoral Award 2020 can agree in writing to cash out annual leave. Each agreement to cash out annual leave must be in writing and the payment must be for the full amount that the employee would have been paid if the employee had taken the leave. A separate agreement is required each time annual leave is cashed out.
Use this template for cashing out of annual leave for Pastoral Award Employees. This agreement must be kept with the employee’s employment records.
Personal/carer’s leave and compassionate leave
Personal/carer’s leave and compassionate leave are a part of the National Employment Standards.
Family and Domestic Violence Leave
Family and Domestic Violence Leave is part of the National Employment Standards.
For more information visit Family and domestic violence leave – Fair Work Ombudsman.
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 unpaid 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 on the instruction of the employer 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.
Notice of termination
The National Employment Standards provide for notice of termination.
Employee notice
In addition to the NES, the Pastoral Award 2020 provides for employees to give the same amount of notice as employers. Notice by employers and employees must be in writing. Employers can deduct up to one week’s wages from employees aged 18 years or over for failure to give notice. Read more here: Termination.
Job search entitlement
Where an employer has given an employee notice of termination, the employee is entitled to take one day off without loss of pay to look for other work. The employee can take the day off at a time when it is convenient to the employee after consultation with the employer.
Annualised salaries
Employers and employees may agree in writing for the employee to be paid an annualised wage or a salary instead of being paid an hourly rate.
This is similar to the IFA and may be useful for farmers provided they keep excellent time records.
The annualised wage can take into account any or all of the following:
- Minimum weekly wages
- Allowances and special allowances
- Hours of work and rostering
- Overtime
- Penalty rates
- Annual leave loading
- Payment for public holidays
No disadvantage
The annualised salary must be no less than the amount the employee would have received under the award for the work performed over the year of the Agreement – or less if the employment is terminated before a year.
This is similar to the BOOT test for an IFA.
Annualised salary resources and information
Download: annualised salary flat rate calculator can be used to calculate the salary to ensure that the employee is not disadvantaged.
Download: annualised salaries fact sheet for further information about annualised salaries and how you might use them in your business.
Download: full time/permanent employment contract template for employees on annualised salaries which also contains details about the legal requirements for annualised salaries.
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Keeping recordsThere are specific requirements for record keeping and annual tallying of hours worked if you want to pay an annualised salary – read the annualised salaries fact sheet for more information
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Individual Flexibility Agreements
Every modern Award must include a ‘flexibility term’ which enables employers and employees to agree to vary the effect of some award terms and put in place conditions of work which are tailor-made to suit the needs of their business and their employees. This is called an Individual Flexibility Agreement (IFA).
Because IFAs stand in the place of the award terms which they modify, employers cannot be liable in the future for payment of those award entitlements.
The Fair Work Act ensures these arrangements do not undermine minimum employee entitlements by requiring the employer to ensure the employee covered by the IFA is ‘better off overall’ on the IFA compared to the modern award.
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Use these templates to create your own Individual Flexibility Agreement and an IFA letter of offer |