Running a business in Australia's horticulture sector comes with unique challenges, particularly when it comes to managing your workforce. The Horticulture Award MA000028 sets out the minimum employment standards and conditions for businesses in the industry.
This guide unpacks the key elements of the Horticulture Award, making it easier for business owners, HR managers, and payroll professionals to understand their obligations and ensure compliance.
The Horticulture Award is a legal document that outlines the minimum pay rates, employment conditions, and entitlements for employees in the horticulture industry. It works alongside the National Employment Standards (NES) to form a safety net of minimum conditions for employees.
This guide covers:
Getting Award compliance right protects both your business and your employees. Mistakes in Award interpretation can lead to underpayments, which might result in significant penalties and damage to your business reputation.
In 2023 alone, the Fair Work Ombudsman recovered millions in underpaid wages across various industries, highlighting the importance of understanding and correctly applying Award provisions.
Small oversights in Award compliance can become major issues. A misunderstanding about overtime rates or meal break requirements might seem minor at first, but they can add up to substantial amounts when calculated across multiple employees over time.
So, let's examine each aspect of the Horticulture Award in detail so you can confidently manage your workforce and maintain compliance with your obligations.
And if you download our eBook, you’ll get access to a BONUS checklist, classification tables and more.
Disclaimer:
Please note that every effort has been made to ensure that the information provided in this guide is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal or tax advice. You should, where necessary, seek a second professional opinion for any legal or tax issues raised in your business affairs.
The scope of the Horticulture Award extends to businesses and employees working within Australia's horticulture industry. Let's look at exactly who falls under this Award and who doesn't.
The Award applies to work involving:
The Award covers work with:
Note that broadacre field crops are specifically excluded from this Award.
The Award covers various roles within the horticulture industry, including:
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.
Several related industries fall under different awards:
|
Industry |
Alternative Award |
|---|---|
|
Wine Industry |
Wine Industry Award |
|
Plant Nurseries |
Nursery Award |
|
Sugar Farming |
Sugar Award |
|
Cotton Growing |
Cotton Industry Award |
|
Silviculture |
Silviculture Award |
The Horticulture Award recognises three main categories of employment, each with its own specific requirements and entitlements.
Full-time employees work an average of 38 ordinary hours per week. These employees receive:
Part-time arrangements offer flexibility while maintaining regular hours. A part-time employee:
Any hours worked beyond the agreed schedule counts as overtime and attract overtime rates.
Casual employment provides maximum flexibility for both employers and employees. Here's what you need to know:
From August 2024, casual employees have pathways to convert to permanent employment under the National Employment Standards. This right applies when:
|
Classification Level |
Description |
|---|---|
|
Level 1 |
Entry level - basic duties under supervision |
|
Level 2 |
Some experience - routine tasks with limited responsibility |
|
Level 3 |
Experienced - can work independently |
|
Level 4 |
Advanced skills - may supervise others |
|
Level 5 |
Specialist skills - high level of responsibility |
You can download this eBook to access our classification tables and take a more detailed look at each level.
When hiring new staff, you must:
Managing working hours in the horticulture industry requires careful attention to the Award's requirements.
These requirements vary significantly between permanent and casual staff, with specific provisions for shift workers.
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:
If the orchard needs to adjust hours during harvest season, they could arrange with employees to work:
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:
|
Time Period |
Loading Structure |
Total Loading |
|---|---|---|
|
5:00 am - 8:30 pm |
Base rate + 25% casual loading |
25% |
|
8:31 pm - 4:59 am |
Base rate + 25% casual + 15% night |
40% |
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.
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.
Successful management of working hours in horticulture requires thoughtful planning and clear communication. Consider creating a documented hours policy that outlines the following:
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.
The Horticulture Award sets out minimum pay rates and entitlements for workers in the industry. These rates are reviewed annually, with changes typically taking effect from July 1st each year.
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.
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:
Full-time employees can enter into written agreements for annualised salaries that incorporate various Award entitlements, including:
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.
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:
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:
The Horticulture Award provides several allowances to compensate employees for additional responsibilities or challenging working conditions:
Search our database for all relevant allowances to your modern award.
Back to topAdditional 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.
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Day |
Rate |
Example |
|---|---|---|
|
Monday to Saturday |
150% |
$35.19 per hour for Level 1 |
|
Sunday (non-harvest) |
200% |
$46.92 per hour for Level 1 |
|
Sunday (harvest period) |
Mixed rates |
See harvest period section |
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:
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:
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 overtime operates differently from permanent staff overtime. A casual worker enters overtime when they:
When these thresholds are met, casual workers receive 175% of their ordinary hourly rate (inclusive of casual loading).
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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.
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:
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.
Employers and employees must agree on when leave will be taken, considering:
Written agreements must be made if an employee wishes to take annual leave before it has accrued. This agreement must specify:
Full-time and part-time employees receive 10 days of paid personal/carer's leave each year. This leave:
All employees can access:
The Award also recognises:
These entitlements align with the NES provisions.
Alternative days may be substituted for public holidays through:
Managing payroll under the Horticulture Award presents unique challenges. Modern cloud payroll systems help streamline compliance:
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.