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New Kmart Agreement Approved by Fair Work Commission

21 November 2019

Good news! The new Kmart Agreement has now been approved by the Fair Work Commission.

The new Kmart Agreement will take effect from Wednesday 27 November 2019.

Your new rates of pay will apply including improved penalty rates from Monday 25 November 2019.

Remember to check your payslip once the new Agreement is in place to ensure you’re receiving the correct pay. You’ll notice the difference in your pay packet on 4 December 2019.

Kmart employees will be entitled to backpay to 1 July 2019. The Company is currently undertaking the calculations of this backpay and this will be paid to you in the new year.

The new Kmart Agreement secures your pay and conditions over the next few years including:

  • New and increased pay rates on weeknights and weekends
  • New right for casuals to formally apply for permanent work
  • New paid family and domestic violence leave
  • New laundry allowance (subject to certain criteria)
  • No 20% cut in part-time hours clause

The SDA will continue to keep you updated about your new Agreement. You can also read more about it at

If you have any questions, please contact the SDA.

SDA wins for Kmart workers in Fair Work Commission

The SDA’s appeal following the Fair Work Commission’s disappointing decision to not approve the Kmart Agreement has been successful.

The Agreement, which was originally lodged in December 2018, was overwhelmingly supported in a 91.7% yes vote. Despite this, the Commission had some technical concerns regarding who was and wasn’t eligible to vote on the proposed Agreement.

The SDA and Kmart appealed the decision to the Full Bench of the Fair Work Commission. The Full Bench after hearing submissions from the SDA and Kmart was satisfied that the Agreement was indeed genuinely agreed to by the employees covered by it.

The Agreement includes numerous improvements to your pay and conditions, including pay rises and higher pay rates on weekends and weeknights.

We understand the delay in securing a new Kmart Agreement has been frustrating as it delays protecting and improving your pay and conditions.

Today the Commission has supported the SDA and Kmart’s appeal. This is an important step towards ensuring the new Agreement will be put in place.

Before the Agreement is approved, the Commission has asked Kmart to make certain undertakings which the Company will now consider.

The SDA is hopeful the process to approve the new Agreement will occur as quickly as possible.

Once the new Agreement comes into effect the new rates of pay will apply including new penalty rates. Kmart employees will also be entitled to backpay to 1 July 2019 and the SDA will update you with further information about the timing of this payment.

The SDA will continue to keep you updated as more information comes to hand.

If you have any questions about this or any other workplace matter, please call the SDA.


SDA fighting to deliver better pay and conditions for Kmart workers

The SDA has decided to appeal the Fair Work Commission’s decision not to approve the new Kmart Agreement.

Last week the Commission decided it could not approve the proposed Agreement due to technical reasons.

The SDA is disappointed with this, as there was a 91.7% yes vote of Kmart workers for the Agreement which would have delivered better pay and conditions for Kmart workers. The SDA wants these improvements to be paid to you as soon as possible.

We are pleased that Kmart has decided to appeal the decision as well.

The SDA has asked the Commission to deal with this matter urgently.

We are hopeful that a full bench of the Fair Work Commission will consider it appropriate to approve the new Kmart Agreement.

The SDA will continue to keep you updated throughout this process as we work to deliver better pay and conditions to Kmart workers as soon as possible.

If you have any questions, please call the SDA

Important update for Kmart workers

After a long delay, today the Fair Work Commission decided that it could not approve the proposed Kmart Agreement primarily due to voting technicalities going to who was and wasn’t entitled to vote.

Despite being overwhelmingly supported in a 91.7% yes vote, the Commission believes that some errors were made regarding who was and wasn’t eligible to vote on the proposed EA.

The SDA is extremely disappointed in this decision as the proposed Agreement set out several improvements to your pay and conditions, including pay rises and higher pay rates on weekends and weeknights.

It is the SDA’s priority to continue to work to secure a Kmart Agreement that delivers the best possible outcomes for workers.

The SDA will be entering discussions with Kmart to address this and decide on next steps. We’ll keep you updated.

We understand this delay in securing a new Kmart Agreement is frustrating as it delays protecting and improving your pay and conditions.

At a time when the cost of living continues to rise, it’s vital that your wages do too and you deserve the security and peace of mind about your wages. That’s why the SDA will continue to fight for Kmart workers.

If you have any questions, please contact the SDA


Following extensive negotiations between the SDA and Kmart, the proposed Kmart Australia Ltd Agreement 2018 is ready for you to consider.

The proposed Agreement delivers an outcome consistent with the SDA’s four key priorities, set and endorsed by hundreds of SDA store Delegates at meetings held throughout Australia. The proposal contains:

Protection of your take-home pay
Improved pay rates on weekends & weeknights
Ensures pay rises for everyone
Hard-won SDA union conditions
SDA store Delegates have met across Australia and endorsed the new Agreement. This document contains a summary of the differences between the proposed Agreement and the current Kmart Agreement. Click here for full copy of the proposed Agreement.

If approved by team members the proposed Agreement will commence 7 days after approval by the Fair Work Commission. The Agreement has
a nominal expiry date of 4 years after the date of approval or 28 February 2023, whichever is the earlier.

The proposed Agreement contains significant changes to conditions of employment at Kmart. Please read this information carefully and if you have any questions about the proposal please speak to your SDA Delegate, SDA Organiser or call the SDA.

The SDA has worked hard to ensure that your take home pay is protected.

The proposed Agreement moves from a model of a higher base rate of pay and lower penalty rates to a lower base rate with higher pay on weekdays before 7am and after 6pm and on weekends.

As we make this transition the SDA wants to ensure no one on higher rates will be worse off.

The proposed Kmart Agreement ensures that current higher rates of pay for existing employees from 7am to 6pm Monday to Friday are protected and these employees will also receive wage increases.


Below is the current hourly rate of pay and the proposed new hourly rates of pay for team members (day workers).

For rosters with any hours outside 6am to 6pm Monday to Friday a laundry allowance of $1.25 per shift or for full time $6.25 per week will now apply. If you work a shift that includes hours within the span (6am-6pm) and hours outside this span, you will receive the laundry allowance.

Permanent Team Members
















Casual Team Members

A day worker is an employee whose rostered hours of work are between 6am and midnight. Existing day workers’ protected higher base rates of pay for work between 7am-6pm Monday to Friday will increase by 1.75% per year.

Day workers rates of pay at other times will increase from the commencement of the agreement and then go up in line with the pay rise won by the SDA with the ACTU at the Fair Work Commission’s annual wage review (AWR) (for example this year we won a 3.5% increase and the year before a 3.3% increase).

Casual pay rates will increase over the life of the Agreement for work on Monday to Friday 6pm to 11pm and on Saturdays. This is a result of the SDA winning our case in the Fair Work Commission for casual employees to receive penalty rates in addition to casual loading.

The proposed Agreement mirrors the rates of pay for penalty rate times in the Award which includes the recent Fair Work Commission decision that reduces Sunday penalty rates over the next 2 years.

There is proposed legislation that seeks to increase Sunday rates in the Award that has not yet been successful. Kmart has agreed that if Sunday penalty rates in the Award were to increase they would meet with the SDA and enter discussions regarding increasing Sunday rates in the Agreement.

Junior rates in the proposed Agreement are as follows (this will apply to all levels):

New employees rates of pay – 7am to 6pm Monday to Friday
Workers employed from the date of commencement of the proposed Agreement will receive the following rates of pay:

To recognise that it has been a while since the last wage increase it was important for the SDA to secure a payment for employees who have worked through that period.

A $450 lump sum payment for existing full-time employees (pro rata for part-time, casuals and juniors) will be paid to employees after a positive vote on the Agreement.

The new Agreement contains a laundry allowance that will be paid to employees. The allowance is paid to employees who wear clothing with a Kmart logo.

Casual / Part-time $1.25 per shift
Full-time $6.25 per week

At the commencement of the Agreement existing employees who work all of their hours exclusively between 6am – 6pm Monday to Friday will not receive the allowance.

Each year Kmart and the SDA will review the eligibility of employees who only work between 6am to 6pm Monday to Friday for the laundry allowance. An existing employee working these hours cannot receive less than an employee on the same level for the same hours receiving the new base rate of pay and laundry allowance.

First Aid – $2.18 per shift / $10.89 per week
Transport Allowance – $0.78 per km
Higher Duties Allowance – When working at a higher classification team members will be paid the higher level for time so worked, or whole shift if longer than 2 hours.
Meal Allowance – $18.29 ($16.57 for the second meal allowance if overtime exceeds 4 hours)

Allowances may increase over the life of the proposed Agreement and will not be less than the same allowance in the Award.


The SDA has defended the following above Award conditions that will remain in the proposed Agreement:

» Higher wage rates than the Retail Award
» Voluntary Work on Public Holidays
» 15 minute Tea Breaks
» Part time employees guaranteed a minimum number of hours per week higher than the Award
» Rostering taking into account family responsibilities and safe transport home.
» All 20 year olds receive 100% pay
» SDA Union Picnic Day in NSW
» Better Compassionate Leave
» Paid Defence Force Leave
» Paid Blood Donor Leave
»» Paid Emergency Services Leave
» Paid Natural Disaster Leave (up to 3 days paid leave)
» Higher Redundancy Pay
» Long Service Leave double leave at half pay
» Limited Tenure restrictions
» Pre-Natal Leave
» Security guidelines
» Arbitration of workplace disputes

New Casual Conversion Clause
The proposed Agreement provides the ability for a casual to convert to permanent employment, subject to certain criteria.

No 20% cut in part time hours clause
Without agreement a part-time employee’s core (or contracted) hours cannot be reduced.

Part-time Additional Temporary Hours
Additional temporary hours must be agreed in writing. A part-time employee can agree to do additional hours in advance through a standing consent.
Employees will now accrue leave entitlements (including annual leave and personal leave) and attract superannuation payments on additional hours worked- instead of the current 15% loading paid.

Increasing part-time contracted hours
Where a part-time team member has, over a period of at least 12 months, consistently worked a number of additional temporary hours the team member may request in writing to increase their permanent minimum contract hours.

Roster change consultation rights
Under the proposed Agreement before your roster is changed, Kmart will have to:
» Provide information about the change (eg what the change will be and when)
» Ask you to give your views about the change (eg will it impact with an existing commitment, such as child care arrangements)
» Consider your response about the impact of the change.

Family and Domestic Violence Leave
The proposed Agreement provides for 2 paid days and 3 unpaid days of Family and Domestic Violence Leave (FDVL). The inclusion of paid FDVL recognises that team members who experience family and domestic violence may need additional support to deal with the impact of the family and domestic violence.

Additional paid rest break of 15 minutes when working 7 hours or more in NSW, SA & WA.
Employees in NSW, SA & WA will now be entitled to a second 15 minute paid rest break when working hours or more. This is in addition to the first 15 minute paid rest break and your unpaid meal break. (This already applies in other states)

Split Shifts (also called Additional Shifts)
Consistent with the Award, the proposed Agreement will not have split shifts, which previously permitted two shifts to be worked on one day with less than a ten hour break between shifts. The proposed agreement requires a 12 hour break (or 10 hours by agreement) between finishing one shift and starting the next shift.

Day in lieu when public holiday falls on non-working day
With the introduction of higher Saturday pay rates, the new proposed Agreement no longer contains the provision for a day in lieu when your non-working day falls on a public holiday. The SDA fought hard to win this case in the Fair Work Commission and to have this provision inserted into the Award – which would have secured it for Kmart workers. However, the case was not successful and as a result of this we have not been able to retain this benefit in the proposed Agreement.

Personal Leave
The proposed Agreement provides that Personal Leave will now accrue on a progressive basis rather than upfront. Existing Personal Leave balances are not affected by this change.
The proposed Agreement does not retain the additional 7.6 hours that was previously available in a year if you had used all of your accrued Personal Leave. Unused Personal Leave continues to accrue from year to year.

Minimum part-time hours
Minimum part-time hours in the proposed Agreement will be 6 hours per week or 24 hours over 4 weeks. Currently they are 9 hours per week or 36 hours per 4 weeks. A part-time employee’s hours cannot be reduced under the proposed
Agreement so this will not impact existing hours or contracts.

Maximum shift length
The maximum hours that can be worked on one day per week will increase from 10.5 hours to 11 hours. The maximum hours that can been worked on any other day remains at 9 hours.

Annual Leave Loading
Annual Leave Loading of 17.5% will be paid on top of an employees base rate of pay during periods of annual leave. However where the employee would have been paid more had they not been on leave (due to higher pay at other
hours)- then they will be paid their usual higher pay.

Limited Tenure Restrictions
Limited Tenure restrictions have been reviewed so the employees can be engaged for periods of 1 week to cover for long service leave, unpaid
leave and concurrent Parental Leave and 2 weeks for refit, retrofit and layout changes.

The proposed agreement has a new classification structure:

Current mini lab operators and self-serve checkout operators will have your current higher pay rate from 7am to 6pm protected.

Higher Duties
The proposed Agreement has a new higher duties process. Where employees work the higher roles (either in higher classifications in the classifications table or higher roles in the below table) you will be paid at the higher rate:
» if it is for less than 2 hours you will be paid for the time so worked
» if it is for 2 hours or more it will apply for your whole shift.
Higher Duties Roles
Grade A Duty Manager, Service Supervisor (up to 15), Key holder
Grade B Line Manager
Grade C Operations Manager

Parental Leave
The new agreement retains the current provision for 24 months of unpaid parental leave. The NES provides for 12 months of unpaid parental leave. The new Agreement no longer provides a top up of the government’s paid parental leave scheme.

Dispute Resolution Process
Under the proposed Agreement, an employee may appoint a representative at any stage during a dispute. The concept of “status quo” is now limited to roster change disputes.
Where a dispute is about a roster change, work will continue as normal for 6 weeks from the time of the dispute. If that matter goes to the FWC the status quo will apply until the matter is resolved by the FWC.

The proposed Agreement allows Kmart to engage night shift workers. The current Agreement does not have a reference to night shift workers and no Kmart employees are currently employed as night shift workers. Under the proposed Agreement a team member who starts work after 11pm and before 5am will be a night shift worker.

Team members who currently work partly in night shift hours will transition to either day work finishing before 11pm or transition to night shift work starting between 11pm and 5am. If an employee is employed as a night shift worker each of the following examples of shifts would be a night shift because it is a shift that starts between 11.00pm on one day and 5am on the next day:
Example 1 11.30pm – 8.30am
Example 2 Midnight – 7.30am
Example 3 1am – 8.30am
Example 4 3am – 10.30am
Example 5 4am – 12.30pm

A night shift worker will be paid the night shift rates for the entire shift. A team member who currently works hours between 11pm and 5am and receives penalty rates will have saved weekly pay rates. A team member may change from day work to night shift work. However, day work and night shift work cannot be worked interchangeably in one pay period.

Unless you have a saved weekly rate of pay, all time worked on a night shift is paid at the night shift rate of pay:







Existing employees who become night shift workers who worked a roster immediately before 2 December 2018 that included the following hours:
» Midnight to 6am any night of the week;
» Saturday 8pm to midnight
» Sunday 7pm to midnight
are entitled to a “Saved Weekly Rate of Pay” if their current weekly pay is higher than the new weekly pay would be for their same roster under the new Agreement.

Pay increases – Saved Weekly Rates 
Saved Weekly Pay Rates will increase by 1.75% per year until the new Agreement rates catch up. The Saved Weekly Pay Rate will go up twice each year as follows:







Employees who transition from a roster that currently is partly in the day worker span of hours and partly in the night shift worker span of hours will not have their weekly pay reduced whether they transition to be a day worker or to be a night shift worker.
In either case if their current weekly pay is higher than the new weekly pay for the roster they transition to under the new Agreement they will be entitled to a “Saved Weekly Rate of Pay” as above, that will also increase as above.

If you have any questions or concerns about this please speak to your SDA Delegate or SDA Organiser or contact the SDA. The SDA will provide members with updates as this process progresses.

The proposed Kmart Agreement will help ensure pay rises every year.
Use our online pay calculator to estimate your weekly pay.

Click here to estimate your new weekly pay now.