The Horticulture Award (MA000028): A Jargon-Free Guide for Employers [2024 Update]

Covered Activities 

The Award applies to work involving:

• Sowing, planting, and raising horticultural crops
• Harvesting, picking, and packing produce
• Storing and grading horticultural products
• Land preparation, including clearing, fencing, trenching, and draining
  
  

Types of Crops 

The Award covers work with:

• Fruits and vegetables
• Grains and seeds
• Nuts and fungi
• Olives and hops
• Flowers and specialised crops

Note that broadacre field crops are specifically excluded from this Award.

Employee Classifications

The Award covers various roles within the horticulture industry, including:

• Field workers performing harvesting, planting, picking, thinning, or pruning
• Machinery operators handling sorting and packing equipment
• Vehicle operators driving lorries, harvesters, forklifts, and tractors
• Quality control staff managing inventory and store control

Labour Hire Arrangements

This award covers labour-hire businesses and their employees placed within horticultural enterprises. It is particularly relevant for seasonal work and harvest periods when additional workers are needed.

Industries Not Covered

Several related industries fall under different awards:

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The Horticulture Award recognises three main categories of employment, each with its own specific requirements and entitlements.

Full-time Employment

Full-time employees work an average of 38 ordinary hours per week. These employees receive:

• Guaranteed hours
• Paid leave entitlements
• Consistent weekly pay
• Notice of termination
• Redundancy benefits

Part-time Employment

Part-time arrangements offer flexibility while maintaining regular hours. A part-time employee:

• Works less than 38 hours per week
• Has regular hours and start/finish times
• Receives the same hourly rate as full-time staff
• Gets pro-rata leave entitlements
• Must be informed of their ordinary working hours

Any hours worked beyond the agreed schedule counts as overtime and attract overtime rates.

Casual Employment

Casual employment provides maximum flexibility for both employers and employees. Here's what you need to know:

• Casual employees work up to 38 hours per week on average
• Each shift must be at least two consecutive hours
• They receive a 25% loading on top of the base hourly rate
• The casual loading compensates for:
   
  • No annual leave
  • No paid personal leave
  • No notice of termination
  • No redundancy benefits

Casual Conversion 

From August 2024, casual employees have pathways to convert to permanent employment under the National Employment Standards. This right applies when:

• The employee has worked for your business for 12 months
• They have worked a regular pattern of hours for at least 6 months
• These hours could continue as permanent employment

Employment Classifications

You can download this eBook to access our classification tables and take a more detailed look at each level. 

Employer Obligations

When hiring new staff, you must:

• Clearly communicate the type of employment
• Provide written confirmation of employment terms
• Specify classification level and corresponding pay rate
• Document agreed working hours for part-time staff
• Keep accurate records of all employment arrangements
  
  

These requirements vary significantly between permanent and casual staff, with specific provisions for shift workers.

Standard Hours for Permanent Staff

The Award's working hours are based on a 152-hour, four-week period for permanent employees.

These hours typically run Monday through Friday, though Saturday work is permitted with majority employee agreement. The standard workday operates between 6:00 a.m. and 6:00 p.m., with an eight-hour day being the norm. 

However, employers and employees can agree to extend daily hours up to 12 hours when needed.

For example, Sarah works full-time at an apple orchard. Her typical roster might look like this:

• Week 1-4: Monday to Friday, 7:00 am to 3:30 pm (with a 30-minute lunch break)
• Total: 38 hours per week × 4 weeks = 152 hours

If the orchard needs to adjust hours during harvest season, they could arrange with employees to work:

• Monday to Friday, 6:00 am to 2:30 pm
• Or extend to Saturday mornings with employee agreement

Casual Employee Hours

Casual employment offers greater flexibility in the horticulture sector. These workers can accumulate up to 304 ordinary hours over eight weeks, with each engagement requiring a minimum of two consecutive hours. 

The Award recognises that agricultural work often requires variable timing, so casual employees can work at any time of day.

The payment structure for casuals reflects this flexibility:

Shift Work Arrangements

Shift work in horticulture follows a structured approach within the same 152-hour, four-week period. Employers running shift operations must establish clear patterns, particularly when operating multiple shifts.

Afternoon shifts, which conclude between 6:00 pm and midnight, attract a 15% loading, as do night shifts ending between midnight and 8:00 am.

For example, A berry farm operating multiple shifts might structure its operation like this:

Day Shift:

6:00 am - 2:00 pm: Picking and initial processing

(Standard rates apply)

Afternoon Shift:

2:00 pm - 10:00 pm: Packing and dispatch

(15% loading applies)

Night Shift:

10:00 pm - 6:00 am: Cool room operations and loading

(15% loading applies)

Effective shift management requires careful planning. Employers should maintain detailed rosters specifying start and finish times for each shift.

Where possible, shifts should rotate regularly to distribute the load fairly among workers. This is particularly important when operating two or three-shift systems.

The Right to Disconnect

A significant addition to the Award, effective August 2024 (August 2025 for small businesses), establishes clear boundaries between work and personal time. This provision acknowledges the modern challenges of constant connectivity while protecting employee well-being and business operations.

Employees can now decline to monitor or respond to work communications outside their designated hours. This right balances the practical needs of agricultural operations with workers' need for genuine downtime. However, the provision includes reasonable exceptions, recognising that some circumstances may require out-of-hours contact.

Practical Implementation

Successful management of working hours in horticulture requires thoughtful planning and clear communication. Consider creating a documented hours policy that outlines the following:

• Your standard operating hours 
• Shift patterns and rotation systems 
• Communication expectations outside working hours 
• Overtime arrangements

Remember that any variation to standard hours requires agreement from the majority of affected employees. Document these agreements carefully to ensure compliance and clarity for all parties.

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The Horticulture Award sets minimum pay rates and entitlements for industry workers. These rates are reviewed annually, and changes typically take effect on July 1st.

Piece Rates

The Award allows for piece-rate arrangements, where payment is based on individual output rather than hours worked. For example, a fruit picker might be paid per bin of apples collected rather than per hour worked.

Key requirements for piece rates include:

• Must allow competent workers to earn at least 15% more than the minimum hourly rate
• It cannot be based on group performance
• Must guarantee minimum daily earnings
•  

Annualised Salary Arrangements

Full-time employees can enter into written agreements for annualised salaries that incorporate various Award entitlements, including:

• Base salary
• Overtime rates
• Penalty rates
• Annual leave loading
• Allowances

These arrangements must ensure employees are not disadvantaged compared to Award entitlements and require regular reconciliation.

You can read more about the mechanics of these arrangements in this guide.

Accident Pay

The Award includes provisions for accident pay, supporting employees who suffer workplace injuries. This provides up to 26 weeks of payments to bridge the gap between workers' compensation payments and regular earnings.

So, let’s say Maria injures her back at work and receives workers' compensation payments. The Award ensures she receives accident pay - the difference between her compensation payments and her normal weekly earnings.

The accident pay period begins on the date of injury. If Maria returns to work but needs more time off later for the same injury, these absences add up towards her 26-week entitlement. For example:

• Initial absence: 15 weeks
• Return to work: 8 weeks
• Second absence for same injury: 11 weeks

Maria can claim the full remaining 11 weeks as they fall within her total 26-week entitlement.

Employment Termination
If Maria's employment ends during her 26-week accident pay period, she maintains her right to accident pay for the remainder of the 26 weeks. Her employer cannot use termination to avoid accident pay obligations.

Calculating Partial Weeks
When accident pay covers less than a full week, payments are calculated proportionally. For instance, if Maria works Monday and Tuesday but is absent Wednesday through Friday due to her injury, she receives accident pay for just those three days.

Return to Work Arrangements
If Maria returns on reduced hours or modified duties, her accident pay adjusts accordingly. The amount reduces based on any earnings from her modified work arrangement.

Casual Employee Calculations
For casual workers, accident pay calculations use their average weekly hours over the previous 12 months. For newer employees, the calculation uses their average hours since starting work. The casual loading applies but excludes over-award payments.

Important Exclusions
Accident pay does not apply during:

• Annual leave
• Long service leave
• Public holidays

• Leading Hand Allowance  Additional payment for employees supervising others, varying by team size. For example, a leading hand managing 11-20 employees receives a higher rate than one managing 2-6 employees.
• Wet Work Allowance: Compensation for working in wet conditions where clothing becomes saturated
• First Aid Allowance: For qualified first aid officers appointed to perform first aid duties
• Travel Allowance: Covers time spent travelling between work locations and accommodation costs when required to stay away from home
• Tool Allowance: Reimbursement when employees must supply their own tools
• Meal Allowance: Provided when working extended overtime without prior notice

Search our database for all relevant allowances to your modern award.

Additional employer contributions may apply for employees working overtime or receiving certain allowances.

The current rate for the 2024-25 financial year is 11.5% and this will increase one more time to 12% for the 2025-26 financial year.

Overtime Rates for Permanent Employees

Time Off Instead of Overtime

Many agricultural businesses offer flexibility through time off instead of overtime payments (TOIL). This arrangement requires a written agreement between employer and employee.

A practical example: During harvest season, Sam works additional hours picking stone fruit. Instead of receiving overtime pay, she arranges with her employer to take equivalent time off during the quieter season. For every two overtime hours worked, Sam receives two hours of time off.

The agreement must specify:

• The voluntary nature of the arrangement
• Either party's right to terminate the agreement
• Time off must be taken within 6 months
• Payment obligations if time off isn't taken
• Overtime rates apply to any hours worked after termination

Special Harvest Period Provisions

During harvest periods, overtime arrangements become more flexible to accommodate peak workloads. The first eight overtime hours in a week might include Sunday work, with specific limitations:

Sunday work during harvest attracts:

• 150% for the first five hours
• 200% for additional hours
• Minimum three-hour payment for any Sunday work

Consider this scenario: During the mango harvest, David works overtime throughout the week, including Sunday. His first five Sunday hours attract the 150% rate, but when he works a seventh hour that Sunday, it attracts the 200% rate as he's exceeded both the weekly overtime limit and Sunday hours limit.

Casual Employee Overtime

Casual overtime operates differently from permanent staff overtime. A casual worker enters overtime when they:

• Work more than 12 hours per engagement
• Exceed 12 hours in a single day
• Work beyond 304 ordinary hours over eight weeks

When these thresholds are met, casual workers receive 175% of their ordinary hourly rate (inclusive of casual loading).

Annual Leave

Full-time and part-time employees are entitled to 4 weeks of annual leave for each year of continuous service. The leave accrues progressively throughout the year and must be taken at a mutually agreed time.

Leave Loading 

Employees receive a 17.5% loading on their base rate during annual leave periods. This extra payment is designed to compensate workers for lost overtime and penalty rate earnings they would typically earn while working.

For example, an employee earning $1,000 per week who takes annual leave will receive:

• Base weekly pay: $1,000
• Leave loading (17.5%): $175
• Total weekly payment during leave: $1,175

The necessity for leave loading stems from industries where workers regularly earn above their base rate through overtime or penalty rates. Without leave loading, taking holidays would result in significantly reduced income, potentially discouraging workers from taking necessary breaks.

Taking Leave 

Employers and employees must agree on when leave will be taken, considering:

• The business's operational requirements

• The employee's personal circumstances
• Reasonable notice periods

Annual Leave in Advance 

Written agreements must be made if an employee wishes to take annual leave before it has accrued. This agreement must specify:

• The amount of leave taken in advance
• The date the leave will commence
• Signatures from both parties

Personal and Carer's Leave

Full-time and part-time employees receive 10 days of paid personal/carer's leave each year. This leave:

• Accumulates progressively throughout the year
• Carries over from year to year
• Requires notice and evidence as requested by the employer

Compassionate Leave

All employees can access:

• 2 days of compassionate leave per occasion
• Paid leave for permanent employees
• Unpaid leave for casual employees

Additional Leave Types

The Award also recognises:

• Parental leave entitlements
• Community service leave
• Family and domestic violence leave

These entitlements align with the NES provisions.

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• Payment at base rates if not required to work
• Double time and a half rates for work performed
• Minimum 3-hour payment for work performed

Substitution Arrangements 

Alternative days may be substituted for public holidays through:

• Individual agreement between employer and employee
• Majority agreement in the workplace

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• Understanding and correctly applying the Horticulture Award is crucial for maintaining compliant employment practices and avoiding underpayments
• Different employment types, working hours, and overtime arrangements require careful management, particularly during harvest periods
• Regular review of pay rates, allowances, and leave entitlements helps ensure ongoing compliance
• Proper record-keeping systems are essential for tracking hours, leave, and payments
• Clear written agreements for arrangements like time off instead of overtime protect both employers and employees

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Managing payroll under the Horticulture Award presents unique challenges. Modern cloud payroll systems help streamline compliance:

• Real-time Award Interpretation: Cloud systems automatically calculate correct rates for different times of day, overtime thresholds, and allowances. This reduces the risk of underpayment and saves administrative time.
• Leave Management: Track leave balances, process requests, and calculate leave loading automatically. The system maintains accurate records and helps forecast leave liability.
• Time and Attendance: Mobile clock-in systems capture start and finish times, helping track ordinary hours, overtime, and breaks. This proves particularly valuable for seasonal workers and variable shifts.
• Reporting and Record-keeping: Generate reports for payroll, superannuation, and leave balances. Maintain electronic records of all employment agreements and time worked, meeting Fair Work obligations.
• Single Touch Payroll: Seamlessly report to the ATO while ensuring Award compliance. Cloud systems update automatically with Award changes and tax table updates.

Consider implementing a cloud payroll solution to reduce complexity and ensure Award compliance. The right system can transform payroll from an administrative burden into a streamlined process.