Pay & Awards 4 min read

Are You Paying Your Farm Workers Correctly?

Most underpayment on farms isn't deliberate. It's a classification error that compounds over a season. Here's what to check, what gets missed, and what it costs if you don't.

Farm

Most farming businesses I talk to are paying people in good faith. They're not trying to short-change anyone. But good intentions don't protect you from a claim, and the gap between what you're paying and what the law requires can be significant, especially once you factor in penalty rates, allowances, and back-pay calculated across a full season.

Here's what gets missed most often.

Picking the right pay framework for the right worker

Agriculture sits across several different pay awards depending on the type of work. General farm work, shearing, and station hand roles fall under one award. Harvesting, packing, and nursery work fall under another. Starting from the wrong one means every calculation is off from the beginning.

Casual rates applied incorrectly

Casual workers must receive a higher hourly rate in place of entitlements like annual leave and sick leave. What I regularly see is that loading applied to the base rate only, but not carried through to overtime hours. It's a small difference per shift. Across a harvest season with 30 workers, it adds up quickly.

Allowances that get overlooked

Both major agricultural pay awards include specific allowances: meals when overtime is worked, for tools, and in some cases for remote locations. These are not optional. They're legally required where the conditions are met, and they don't go away just because they weren't mentioned at the start.

What happens when it catches up with you

$93,900
Maximum penalty per breach for a business, applies per worker in serious cases
$18,780
Maximum penalty per breach for an individual: director, manager, or business owner

An underpayment claim or Fair Work investigation doesn't just result in back-pay. It can result in significant financial penalties. In serious cases, those apply per worker, per breach.

The fix isn't complicated. A proper review of who you're employing and what you're paying them, a documented pay structure, and a check each July when minimum wages are updated. That's it. Better to find out now than to have someone else find out for you.

Next Step

Not confident your pay structure is right?

Get in touch and let's take a look together.

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