Horticulture Award compliance: a practical refresher for growers

When was the last time you looked at how Horticulture Award obligations are applied in your business? Regular reviews can help ensure ongoing compliance.

The Horticulture Award sets out the minimum terms and conditions for many workers across the sector. While most growers are familiar with its broad intent, recent compliance activity by the Fair Work Ombudsman highlights that applying the Award in practice can be more complex than it first appears.

In its recent Horticulture Compliance Report, the Fair Work Ombudsman identified ongoing non-compliance across the industry, with 261 infringement and compliance notices issued across the wider horticulture sector. While issues were more prevalent in labour hire arrangements, businesses that employ workers directly were also found to have gaps in how Award obligations were applied.

For direct employers, the most common issues were not deliberate underpayment, but:

• record keeping and payslip deficiencies
• misunderstanding or misapplication of Award entitlements
• employees not receiving required information at the start of employment
• lack of clarity for workers on how piece rate arrangements operate.

These findings are not limited to a particular crop or region. They reflect broader challenges across horticulture and highlight the importance of regularly revisiting how Award obligations are applied within your business.

Key areas to revisit

The Horticulture Award is detailed, and this article does not attempt to cover it in full. However, recent compliance activity suggests there are some areas that may be less well understood in practice, and are worth revisiting as part of a broader review of your obligations.

Ordinary hours of work
Ordinary hours form the basis for calculating pay, including when overtime or penalty rates apply for permanent, casual and piece rate employees. In practice, this is not always applied consistently.

For example, during peak harvest periods, employees may work extended hours across a number of days. If all hours are treated as ‘ordinary’, without considering the structure of the Award, there is a risk that overtime or penalty entitlements are overlooked.

Taking the time to understand how ordinary hours apply within your specific working arrangements helps ensure pay outcomes remain aligned with the Award, particularly during busy seasonal periods.

Employee classifications
The Award sets out classification levels based on the nature of the work performed. One area that can be overlooked is how classifications change over time.

For example, a worker may commence at an entry-level classification while they are being trained. However, the Award stipulates that entry level employees will progress to Level 2 after no more than three months of industry experience.

Regularly reviewing classifications, particularly for workers who return season after season or remain for extended periods, helps ensure pay rates remain consistent with the work being performed.

Record-keeping obligations
Accurate record keeping is a core requirement under the Fair Work Act 2009 and a key focus area for regulators.

In a horticulture setting, this may include:

• recording hours worked each day
• maintaining clear links between hours worked and output where piece rates apply
• issuing payslips that include all required information.

For example, when workers are paid by piece rate, it is important to be able to demonstrate not only what they earned, but how that amount was calculated. Without this, it can be difficult to verify that minimum entitlements have been met.

Strong record keeping supports both compliance and transparency, particularly in environments with variable hours and output.

Piece rates
Piece rates are a long-standing feature of the horticulture industry and can provide flexibility when applied appropriately. However, they must operate within the framework of the Award, including ensuring all workers can earn at least the applicable minimum Award rate for the hours worked.

In practice, this means workers should:

• understand how their piece rate is set
• be able to see how their earnings are calculated.

For example, when piece rates are set based on ideal conditions but not reviewed as conditions change, workers may struggle to achieve expected earnings.

Clear communication and periodic testing of piece rate arrangements help ensure they remain fair, transparent and aligned with Award requirements.

What should growers do now?

Recent compliance activity highlights that small gaps in understanding or systems can create larger risks over time.

A practical starting point is to revisit how Award obligations are applied in your business. This may include reviewing employee classifications, checking record-keeping practices, testing how piece rate systems operate in practice, and ensuring employees receive clear information about their employment at the outset.

The Horticulture Award provides a consistent framework across the industry. Taking the time to ensure it is applied correctly supports both compliance and the effective management of your workforce.

Further reading

• The Horticulture Award
• Fair Work Ombudsman Horticulture Compliance Report

Disclaimer
The information provided in this article is general in nature and is not legal advice. Employers should seek professional advice about their specific circumstances.