Fast-food workers agree to give up overtime penalties for three months

Thousands of part-time fast-food workers will give up overtime penalties for three months under a deal with employers.

Under the new three-month deal, part-time workers will be guaranteed a minimum eight hours a week and their employer will be able to increase their hours without having to pay overtime. Picture: AFP

Thousands of part-time fast-food workers will give up access to overtime penalties for three months under a deal with employers to keep staff in work during the coronavirus pandemic.

Award changes expected to be approved by the Fair Work Commission on Tuesday also allow fast-food businesses to ask employees to take annual leave, including unpaid leave.

An application by the Australian Industry Group, and supported by the Australian Council of Trade Unions, said government restrictions imposed to combat the pandemic had significantly impacted fast-food outlets which have experienced a dramatic decline in customer demand.

Under the award variation, part-time workers would be guaranteed a minimum eight hours a week and their employer would be able to increase their hours without having to pay overtime.

Fast-food outlets have experienced a dramatic decline in customer demand during the pandemic.

“Specifically, an employer can increase the number of ordinary hours to be worked by an employee in the event of, for instance, an unexpected spike in customer demand or a need to cover staff absences, absent the cost imposition of overtime rates,” the application says.

“It also enables an employer to continue to engage part-time employees on the basis of what might be a more conservative guaranteed number of ordinary hours in a week … with the prospect of increasing those hours as needed without being deterred by the impact of paying overtime rates."

Gerard Dwyer, national secretary of the Shop, Distributive and Allied Employees Association, said the application was designed to ensure work for as many fast-food employees as possible in a sector hard hit by COVID-19.

“The variation targets businesses which have been impacted by COVID-19 but which do not qualify for JobKeeper — that is, the JobKeeper scheme and associated legislative changes are not open to them,” he said.

Australian Industry Group chief executive Innes Willox said the fast-food industry was one of the biggest employers of young people in Australia, and young people were particularly vulnerable in economic downturns.

“It is in everyone’s interests to preserve the viability of businesses and preserve as many jobs as possible during the COVID-19 crisis, and this is the objective of the proposed award variations,” he said.