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Proposed new KFC Agreement voted up!

In a ballot of KFC employees, there was a 95% yes vote in favour of the proposed Agreement.

This is a good outcome for KFC employees as the Agreement will secure:

  • Pay rises for everyone
  • Protection of take-home pay
  • Improved penalty rates
  • Hard-won SDA union conditions

The proposed KFC Agreement will now go to the Fair Work Commission (FWC) for approval.

The Agreement will come into effect from 1 February 2020 or 7 days after it is approved by the Commission, whichever is the latter.

The SDA worked hard throughout negotiations to ensure you receive fair pay and working conditions.

Thank you for voting to have your say and to protect and improve your pay and conditions at work.

We will keep you updated as this process progresses.

fast food workers union

Following extensive negotiations between the SDA and KFC the proposed KFC Agreement is ready for you to consider.

The proposed Agreement delivers an outcome consistent with the SDA’s key priorities to secure:

Pay rises for everyone
Protection of take-home pay
Improved penalty rates
Hard-won SDA union conditions

The proposed Agreement will replace the KFC National Enterprise Agreement 2009 or any other operative Agreement in your store. If approved by KFC team members in a vote, it will then go to the Fair Work Commission for approval. Once approved, it will come into effect from the first full pay period on or after 1 February 2020.

The proposed Agreement will be available to view in-store and you can find more information at
This document contains a summary of the proposed Agreement. Please read this information carefully and if you have any questions about the proposed Agreement, please speak to your SDA Delegate or Organiser or call the SDA.

Wage Increases

The proposed Agreement protects your pay and ensures your pay will increase with:

»» Protection of take home pay
»» Regular pay increases
»» New and increased penalty rates
»» New Allowances

After the new Agreement is approved, the minimum rates of pay will apply:

Existing employees at the date of this Agreement coming into operation shall not suffer a reduction in their total rate of pay (including allowances) for working the same hours, as a result of the implementation of the agreement.

Junior employees move to the new Agreement rate upon a birthday increase where that is sufficient to ensure they do not suffer a reduction.

Wages will increase based on the pay rise the SDA, with the ACTU, secures at the Fair Work Commission (FWC) in the Annual Wage Review (AWR) generally in July of each year.

Under the proposed Agreement, there is no change to the junior percentages of the adult rate at 21 years of age.

The new Agreement contains two classifications. Like the expired National Agreement, the proposed Agreement does not cover managers.

Team Member/s (Equivalent to Level 1 of the Award)– including Delivery Drivers
An employee engaged in the preparation, the receipt of orders, cooking, sale, serving or delivery of meals, snacks and/ or beverages which are sold to the public primarily to take away or in food courts in shopping centres. Team members will undertake duties as directed within the limits of their competence, skills and training including incidental cleaning of toilets.

Shift Supervisor (Equivalent to Level 2 of the Award)
An employee other than a manager (of any description) who has the major responsibility on a day to day basis for supervising team members and/or training new employees. The current National Agreement has a Delivery Driver rate including a vehicle reimbursement amount if a delivery driver is required to provide and maintain a suitable vehicle as part of their duties. In the new Agreement, an employee who is engaged primarily to perform home deliveries using their own vehicle will be paid an allowance of $0.41 cents per kilometre. This aligns with the Award.

Penalty rates will be increased twice. First if the Agreement is voted up an increase in some penalty rates will happen on the first full pay period after 15 October 2019. The second increase in penalty rates will apply if the FWC approves the Agreement, with penalty rates consistent with the Fast Food Industry Award. The new proposed penalty rates are:


Public holiday penalty rates will be increased under the new Agreement:

Under the new Agreement, you will be paid the following laundry allowance:

The Award provides for an optional second meal break after working 9 hours or more or alternatively two paid 10 minute rest breaks. The new Agreement provides for both. In lieu of the above unpaid meal break, a Shift Supervisor may be required to have a 20 minute paid crib break, which is to be taken according to operational requirements. There is no such provision for a paid 20 minute crib break in the Award.

The new Agreement replaces the mixed function provision with a higher duties clause which provides that any employee who is not appointed but required to undertake higher duties in a shift shall be paid the applicable rate for the time worked performing those duties.

In the current expired Agreement, a Shift Supervisor may be offered an additional shift by the employer to perform ordinary team member duties, the Shift Supervisor may accept the additional shift at the team member rate of pay. This provision is removed from the new Agreement, so that an employee who is appointed as a Shift Supervisor will not be paid less than the level 2 rate of pay.

Currently when uniforms are supplied to an employee by the employer, a once only deposit of up to $35.00 is paid by the employee in $5.00 instalments. This practice will only continue under the new Agreement if an employee who pays a $35 deposit receives back an additional 8.5% on top of the deposit (ie $38) when they return the uniform to KFC when finishing employment at KFC.

A regular casual employee will have the ability to request that their employment be converted to full time or part time employment subject to certain criteria being met. This entitlement has been secured as a result of a case run by the SDA/ACTU in the Fair Work Commission.

The new Agreement provides for 10 days unpaid Family and Domestic Violence leave plus an additional paid leave up to a maximum of 3 days for full time and part time employees from their accrued personal/carers leave balance.

A new allowance of 1.5% of the applicable team member base rate will be paid for the time where you are required to perform work such as assisting other team members in learning on-the-job skills but you are not the Shift Supervisor. There is no such provision for this payment in the Award.

The proposed Agreement will include the following allowances. No allowance will be less than the amount under the Award during the life of the new Agreement.

Meal Allowance
$13.32 when working overtime for more than one hour on any day without being notified on the previous day. A further meal will be provided or allowance paid for such overtime work exceeding 4 hours.

Transport Allowance
$0.78 per kilometre.
$0.41 per kilometre for an employee engaged primarily to perform delivery duties to customers using their own vehicle.

Travelling time reimbursement
Employees shall be paid for travelling time when working away from their usual workplace in accordance with Clause 22.

Excess travelling costs
Where an employee is required work at another location for a period not exceeding three weeks, all additional transport costs will be reimbursed.

Safe Transport Home
Where commencing or ceasing work after 10pm or before 7am on any day an employee (who is unable to arrange their own safe transport) will be provided
with safe transport home.

Team Meeting allowance
Employees who attend voluntary meetings will be paid an allowance which is equivalent to the time spent at the meeting with a minimum payment of
one hour’s ordinary pay (including relevant night or weekend penalties). This can only apply on a maximum of no more than 6 occasions in any one year for an individual .

The new Agreement provides terms and conditions of employment for school-based trainees in line with the Award based on whether they are in Year 11 or lower, or Year 12. School-based trainees are paid a loading of 7.5% on the standard team member rate of pay in addition to the loadings provided by the Award in compensation for not receiving paid leave entitlements under the Agreement.

The Agreement also provides paid traineeship review meetings at the ordinary rate with the trainee’s registered Training Organisation (RTO) with a minimum payment of one hour.

The following rostering provisions are included in the new Agreement:

»» The new Agreement requires KFC to consult with an employee before they propose a change to the employee’s roster or ordinary
hours of work
»» 2 consecutive days off per fortnight (except where mutually agreed otherwise).
»» 10 hour breaks between shifts for full-time and part-time employees. At the regular changeover of shifts (i.e. no more than once per week), 8 hours may be substituted for 10 hours.
»» Rostered hours on five days per week (or 6 days in one week if in the following week ordinary hours are worked on not more than 4
»» An employee will only work more than 6 consecutive days over adjoining weeks at ordinary rates at the election of the employee.
»» Rosters are set 7 days in advance.
»» KFC shall take into account an employee’s study commitments when rostering.
»» KFC shall take into account an employee’s access to safe transport home when rostering.
»» All ordinary hours of work will be worked within a spread of 11 hours inclusive of breaks, each day Monday to Sunday.
»» No employee may work in excess of 10 hours (excluding meal breaks) on any day. The Award provides that an employee may be rostered to work up to a maximum of 11 ordinary hours on any day.

Roster change consultation
The new Agreement requires KFC to consult with an employee before they propose a change to the employee’s roster or ordinary hours of work. This means that before a roster is changed, KFC will have to:
»» Provide information about the change (e.g. nature of the change and when it is to begin)
»» Invite the effected employee(s) to give their view about the impact of the change (including any impact on their family or caring responsibilities) and also invite their representatives (if any) to give their views about the impact.
»» Consider any views given by the employee(s) and their representative.

The SDA is available to assist any SDA member with a concern about proposed changes to their roster.

Part time employees will agree in writing the number of guaranteed minimum hours to be worked each week or over a roster cycle. At the time of engagement, the part time employee and KFC will agree on the days of the week and the periods on each of those days which the employee is available to work. Any variation to the guaranteed minimum hours agreed at the time of engagement, can only be with the part time employee’s written agreement.

Part time employees (including trainees) will be guaranteed a minimum of 6 hours but less than 38 hours per week. The guaranteed minimum 6 hours per week may be amended to 3 hours per week if the employee changes availability and is only available to work on one day. If an employee requires to change their availability they can do so with 14 days’ notice. If KFC cannot reasonably accommodate the minimum guaranteed hours, then a new agreement on minimum hours and days of work will need to be agreed with KFC.

Part time employees may be offered ordinary hours in addition to their guaranteed minimum hours within the employee’s agreed availability. If accepted the additional hours may be worked without the payment of overtime. Part time employees will have a choice to accept or reject the additional hours on each occasion, with the exception of up to a maximum of 15 minutes at the end of the shift, to be paid at ordinary time subject to the daily and weekly maximums provided elsewhere in the Agreement. Where additional hours are worked regularly over 12 months, the employee may request to increase the guaranteed minimum hours at clause 5.2.9 of the proposed Agreement.

Overtime applies in excess of the rostering provisions (including in excess of the agreed additional hours worked by part time employees as outlined above).

»» Except for overtime on Sundays, public holidays and on a rostered day off, the payment of overtime is paid at 150% for the first 2 hours and double of the ordinary rate thereafter.
»» All overtime worked on Sunday for weekly employees is paid at 200% (for casuals 225% inclusive of the casual loading).
»» All overtime on a public holiday for weekly employees is paid at 250% (for casuals 275% inclusive of the casual loading).

»» Subject to additional hours agreed to work by the part time employee in the part time provisions outlined above, all work on a day
that a weekly employee is rostered off shall be paid 200% (or 250% on a public holiday) with a minimum payment as for 3 hours (currently, 200% for Sunday and public holidays)
»» Where an employee is called in to work overtime on a Sunday and that work is not immediately preceding or immediately following ordinary hours, then the employee must be paid a minimum payment of 4 hours at such rate. This is in line with the Award. (currently minimum payment is 3 hours, but also applies to public holidays)

The current clause that allows for anther day off when a Public Holiday falls on a non-working day (excluding ANZAC public holiday) has been removed and does not form part of the new Agreement. This benefit applied to full time employees and 5 day per week part time employees.

Annual leave will accrue progressively. When taking annual leave employees will be paid 17.5% annual leave loading, or the relevant weekend penalty rates which the employee would have been entitled to had they worked, whichever is greater but not both. This loading will also apply to proportionate leave on termination.

The new Agreement contains provisions for cashing out of annual leave.

The new Agreement allows for the provision of annual leave to be taken in advance before the employee has accrued the entitlement. The agreement must be in writing. The new Agreement also provides a provision for the taking of excessive leave accruals.

The new Agreement contains a new clause detailing the steps to be taken when a store is being refurbishment or shut down. Employees may be required to take annual leave over annual shut down or refurbishment periods. Prior to the shutdown, KFC will notify employees of the dates which leave is to be taken. An employee who does not have sufficient leave shall be required to take leave without pay. Where possible KFC will attempt to find suitable work for the employee at another nearby store.

The new Agreement allows for choice of Superannuation Fund with two default funds (REST or Sunsuper).

Superannuation will be paid while the employee is on any paid leave. Superannuation will also be paid for the period of absence from work due to workrelated injury or work-related illness (subject to a maximum of 52 weeks) provided the employee is receiving workers’ compensation payment and the employee remains employed by KFC. This is a new provision which aligns with the Award.

The new Agreement retains Accident pay of up to 26 weeks for employees who are injured at work and receive workers’ compensation under the applicable State legislation. This is in line with the Award.

The new Agreement incorporates the NES entitlement and also includes flexible working arrangements for an employee who is a parent, or who has responsibility for care, of a child who is of school age or younger.

Employees who are taking responsibility for permanent or long term care of a child through a permanent care order or equivalent long-term foster arrangement will also have access to unpaid parental leave under the same terms as applicable to employees who adopt a child.

The Agreement provides for it for the first ten days as per the NES. The expired 2009 Agreement provides for uncapped jury service leave. However, in Victoria, Jury Service leave is uncapped due to State legislation.

Compassionate leave – 3 days paid compassionate leave for full time and part time employees and 3 unpaid leave days for casuals.
The Agreement provides 1 day paid compassionate leave for full time and part time employees to attend a funeral of an aunt or uncle.

Natural Disaster Leave – The new Agreement provides for unpaid Natural Disaster Leave where a yellow alert or a state of emergency is declared.

Defence Force Services Leave – A weekly employee shall be allowed unpaid leave or paid leave using accrued annual or long service leave entitlements to attend Defence Forces Reserve approved training where the absence is reasonable having regard to all the circumstances.

Compulsory Arbitration – The new Agreement allows for compulsory arbitration in the FWC of matters arising under the Agreement or in relation to the NES at the request of either party where the dispute cannot be otherwise resolved. (currently, the disputes procedure requires an agreement between both parties to have a dispute arbitrated in the FWC)

Payslips – Each pay period employees will be given a statement showing the calculation of your wages and any deductions made. Other information to be provided will include annual leave balances (where the employer’s payroll system is able to do so). (No change)

Facilities – Where reasonably practicable KFC will provide facilities so that employees can secure their belongings while working. It no longer specifies lockers.

Sexual Harassment – A provision is included in the new Agreement acknowledging that sexual harassment is totally unacceptable in the
workplace. KFC will immediately investigate any complaint and make every endeavour to resolve the matter. (No change)

Redundancy – The NES excludes small employers (those who employ 15 or less people) from the obligation to pay redundancy. The Agreement provides that such small employers will pay severance pay capped at the 4 year equivalent from the NES (that is 8 weeks’ pay). (No change)

Union-related matters – The new Agreement includes a range of provisions that recognises the SDA and AWU in North Queensland as being the unions registered under the relevant legislation that represents employees who are covered by the Agreement. A range of provisions include:
»» Recognition of union delegates and leave for
attending union training courses,
»» Promotion of union membership to employees,
»» Deduction of union dues where authorised by an employee,
»» Provision of a staff noticeboard to display union notices.

If you have any questions or concerns about this please speak to your SDA Organiser or contact the SDA.

The SDA will provide members with updates as this process progresses.


The SDA has fought hard to deliver the best possible outcome for KFC workers.

You can vote for the Agreement online at between 4 October 2019 to 10 October 2019

Latest news from negotiations

The SDA has been bargaining with KFC to secure a new Agreement for KFC workers.

Your KFC Agreement for sets out your pay and conditions.

Before negotiations we surveyed KFC workers and used your feedback to take a Log of Claims to the Company. These include your key priorities:

  • Improving penalty rates
  • Fair pay rises
  • Securing best possible conditions

After several meetings we have made good progress on your issues, particularly around improving penalty rates.

We will continue bargaining to secure a new KFC Agreement as soon as possible.

Remember, no new Agreement can be put in place without a vote of KFC workers. You will have the final say.

We will continue to keep you up to date.

If you have any questions please call the SDA.

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