Meat Industry Award 2020 — FWC Award text hosted by the Fair Work Ombudsman

FWC · MA000059 · Clause 18

18. Payment by results

18.1 Clause 18 applies only to meat processing establishments.

18.2 Subject to the provisions of clause 18 an employer may elect to pay employees under an incentive payment system (as an alternative to the timework payment system provided in this award).

18.3 An incentive payment system may apply to the whole of a workplace or enterprise covered by this award or a section or sections of such workplace or the specified categories of employees within the workplace and, to the extent of any inconsistency, will prevail over the timework payment system provided in this award whilst the incentive payment system remains in force.

18.4 The terms and conditions of any incentive payment system and any agreed modification to such system will be:

(a) fully explained by the employer to all employees working under such system prior to implementation;

(b) committed to writing by the employer in a form that enables the operation of the system to be readily understood, and allows employees to monitor accrual of entitlements under the system; and

(c) made available by the employer in written form to all employees covered by the system, upon request, or to an employee.

18.5 The information upon which payments under an incentive system are calculated, and all payments made and other benefits provided to employees under a system must be recorded in writing in the time and wages records of the employer kept in accordance with the requirements of the Act.

18.6 Subject to clause 18, all wages and other entitlements payable to an employee in accordance with an incentive payment system under clause 18, will be payable to the employee as if the terms of the incentive payment system were terms of this award.

18.7 Once implemented, any incentive payment system may only be modified by agreement between the employer and the majority of employees covered by the system. Unless expressly agreed by the employer and a majority of employees no modification to the system will operate so as to detract from or reduce accrued or accruing rights in respect of work performed by employees prior to the implementation of the modification.

18.8 Nothing in clause 18.11 will affect the right of an employer or a majority of employees to terminate any incentive payment system under clause 18.11 in cases where no modification of the system is sought.

18.9 Subject to this award, NES and the Act, the minimum ordinary time earnings for a day or week for employees working in accordance with an incentive payment scheme will be based on the rate of pay prescribed by clause 16—Minimum rates for the classification of the employee plus:

(a) for daily hire employees, an incentive loading of 20% of the employees classification rate, and a daily hire loading of 10% of the employees classification rate;

(b) for casual employees, an incentive loading of 20% of the employees classification rate, and a further casual loading of 25% of the employees classification rate; or

(c) for all other employees, an incentive loading of 20% of the employees classification rate.

18.10 Employees working in accordance with an incentive payment system who perform work in overtime hours defined in clause 22—Overtime or on Saturdays, Sundays or public holidays, will be entitled to minimum payments for all work performed during such times which are no less than the payments to which such employees would be entitled for such time periods worked pursuant to clauses 14—Ordinary hours of work and rostering, clause 22—Overtime and clause 31—Public holidays.

18.11 Subject to clause 18.7 the employer or the majority of the employees covered by any incentive payment system may elect at any time to terminate any such system in force, either in relation to the whole of an establishment or enterprise or any part thereof, upon giving not less than 2 months’ notice of their intention to do so.

18.12 All payments made to employees working under an incentive payment system for work performed during ordinary hours must be treated as the ordinary time rate for the purpose of calculating payment for annual leave, sick leave, public holidays and other paid leave under the award. The weekly rate of pay for such purposes will be calculated by dividing all payment for work performed in ordinary hours over the 12 months’ preceding the taking of leave, by the number of weeks during which any such work was performed. The daily rate of pay will be the appropriate pro rata percentage of the weekly rate.

18.13 If an employee is a member of a union, the employee may be represented by a union in meeting and conferring with the employer about the implementation of clause 18, and in such case, the union must be given a reasonable opportunity to participate in negotiations regarding the proposed implementation of clause 18. Union involvement does not mean that the consent of the union is required prior to the introduction of agreed arrangements.

18.14 For the purpose of clause 18, the following will apply:

(a) incentive payment system means a system of payment whereby the rate or quantum of wages is calculated for each day, shift or week by direct reference to the amount of work performed by the employee, either individually or as a member of a team; and

(b) timework payment system means a system of payment whereby the rate or quantum of wages is calculated for each day, shift or week (or part thereof) worked by reference to the time worked by employees, irrespective of the amount of work actually performed during that time, whether or not expected or predicted levels of production are agreed or specified during such work time.

18.15 Transitional

(a) As at 1 January 2010 if an employer elected to maintain in force an incentive payment system that was in force and effect immediately prior to that date, then the employer will be taken to have elected to implement that system in accordance with clause 18.2.

(b) If an employer elects to maintain an existing incentive payment scheme under clause 18, that scheme will apply from that date in the same manner as if the scheme was implemented for the first time under clause 18.

Complete normalized source clause. Exact snapshot/raw integrity checked; explanation review status is recorded separately on each entry. Parent-clause citation does not establish exhaustive paragraph coverage.

© Commonwealth of Australia 2026. Fair Work Commission. Consolidated Award text hosted by the Fair Work Ombudsman. Quotations retain source wording; whitespace/table formatting is normalised for display. Personal/non-commercial or internal use only under the FWC copyright notice. Quick Award explanations are separate AI source-checked text; no government endorsement.

Official document

Meat Industry Award 2020 — FWC Award text hosted by the Fair Work Ombudsman ↗

Version

This Fair Work Commission consolidated modern award incorporates all amendments up to and including 1 July 2026 (PR799280, PR799339 and PR799495). ↗

Citation verified

26 Oct 2026

Operative note

This entry explains the current consolidated text. A consolidation or capture date does not establish when a term commenced; earlier accrued rights are preserved by clause 1.3.