Fair Work · Compliance · 2026
Fair Work Compliance Checklist for Hospitality Businesses in Australia
22 Feb 2026
Updated 7 Apr 2026
By Fitz HR
8 min read
Legally reviewed — 2026
The Fair Work Ombudsman has made hospitality a priority enforcement sector — every year. Underpayment cases involving restaurant groups have led to increased scrutiny across the entire industry, from large chains to single-venue operations. Most venues that fail an audit don't fail because they're dishonest. They fail because they didn't know the rules. This checklist fixes that.
If you're unsure about any item below, you are exposed to potential Fair Work liability.
How to use this checklist
Work through each section and check your current practices against every item. Any gap is a potential contravention. These are not aspirational standards — they are legal obligations under the Fair Work Act 2009 (Cth) and the Hospitality Industry (General) Award MA000009.
1. Pay & Award Compliance
This is where the Fair Work Ombudsman finds the most contraventions in hospitality — and the most expensive ones. Get this section right first.
Tick each item as you review your current setup — any unchecked item is a compliance gap.
Pay & Award Compliance
Correct Award applied — all hospitality employees are typically covered by the Hospitality Industry (General) Award MA000009, unless another Award or enterprise agreement applies
Classification levels correct — each employee assigned the right level (1–6) based on actual duties, not defaulted to Level 1
Base rates at or above Award minimum — no employee paid below the minimum rate for their classification level
Penalty rates applied correctly — Saturday 125% (full-time/part-time) or 150% (casual); Sunday 150% (full-time/part-time) or 175% (casual); Public Holiday 225% (full-time/part-time) or 250% (casual). The casual percentages already include the 25% casual loading — do not stack the loading on top
Evening loading correct — $2.81/hr flat loading for work between 7pm–midnight (Mon–Fri). Not a percentage multiplier
Night loading correct — $4.22/hr flat loading for work between midnight–7am (Mon–Fri)
Casual loading paid — 25% loading applied to every hour worked by every casual employee
Overtime calculated correctly — first 2 hours at 150%, thereafter at 200%
Superannuation paid on time — 11.5% super paid quarterly for all eligible employees. Late payment is a separate breach
Most common mistake — and most common audit finding: Applying evening loading as a percentage multiplier (e.g. 110%) instead of the correct flat dollar amount ($2.81/hr). This results in systematic underpayment that compounds over time and is one of the first items auditors check.
2. Record Keeping
Under the Fair Work Act 2009 (Cth), employers must keep detailed records for 7 years. Incomplete or inaccurate records attract penalties on their own — even if you've been paying correctly. And if records are incomplete, the Fair Work Ombudsman may rely on employee estimates to calculate the shortfall, which significantly increases your exposure.
Record Keeping — 7 Year Retention Required
Time records — actual start and finish times for each employee, each day. Rostered times are not sufficient
Pay records — rate of pay, gross and net amounts, deductions, and overtime hours for every pay period
Leave records — leave balances, leave taken (dates and type), leave loading paid
Superannuation records — contributions made, fund details, dates of payment
Employee details — name, start date, employment type, classification level, Award reference
Payslips issued within 1 business day — of each payment, including all required information. Missing or inaccurate payslips are a separate contravention
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3. Employment Documentation
These documents are legally required at the point of hire. Issuing them late — or not at all — is a breach of the Fair Work Act 2009 (Cth) regardless of whether pay and conditions are otherwise correct.
Employment Documentation
Fair Work Information Statement (FWIS) — provided to all new employees before or as soon as practicable after starting
Casual Employment Information Statement (CEIS) — provided to all new casual employees at time of engagement
Tax File Number declaration — completed and submitted to the ATO
Superannuation choice form — offered within 28 days of starting
Visa and work rights verified — VEVO check completed for any employee on a visa before commencement
4. Leave Entitlements
Leave entitlements apply from day one of employment for permanent staff. Getting these wrong — or not tracking them at all — compounds into significant liability over time.
Leave Entitlements — Permanent Employees
Annual leave — 4 weeks per year for full-time, pro-rata for part-time. Accrues from day one
Personal/carer's leave — 10 days per year for full-time, pro-rata for part-time
Compassionate leave — 2 days per occasion
Family and domestic violence leave — 10 days paid per year (applies to all employees including casuals, from 1 August 2023 for small business)
Public holidays — entitled to be absent without loss of pay, or paid public holiday penalty rates (225% for full-time/part-time, 250% for casual) if required to work, with a minimum 4 hour engagement for full-time/part-time and 2 hour engagement for casuals
Long service leave — as per applicable state or territory legislation
Casual Employees — Leave Rules
Casual employees do not receive paid annual or personal leave — the 25% loading compensates for this. However, they do receive: unpaid carer's leave, unpaid compassionate leave, and paid family and domestic violence leave. Getting this wrong in either direction creates liability.
5. Termination & Dismissal
Termination errors are the most common source of Fair Work claims in hospitality. Each item below is a separate area of exposure. See our guides on warnings before firing, firing someone on the spot, and what to do if staff threaten Fair Work.
Termination & Dismissal
Notice periods followed — minimum notice as per the Award (1–4 weeks depending on tenure and age)
Final pay processed within 7 days — all outstanding wages, unused annual leave, and any applicable notice payment
Written warnings documented — performance issues addressed through formal written warnings before termination for performance reasons
No unlawful dismissal — not dismissing for discriminatory reasons, exercising a workplace right, or temporary absence due to illness or injury
Small Business Fair Dismissal Code — if fewer than 15 employees, this Code must be followed for all dismissals other than serious misconduct
6. Workplace Health & Safety
WHS obligations sit alongside Fair Work obligations — and a workplace injury without adequate systems in place creates dual liability.
Workplace Health & Safety
WHS policy in place — written policy appropriate to your venue and regularly reviewed
Risk assessments completed — kitchen hazards, slip/trip risks, manual handling, and chemical handling all documented
Incident reporting — process for recording and reporting workplace injuries, including notifiable incidents to SafeWork
First aid — trained first aider on every shift, stocked first aid kit, accessible emergency information
RSA compliance — all staff serving or supplying alcohol hold current Responsible Service of Alcohol certification
Food safety — Food Safety Supervisor appointed, food handling certificates current for all relevant staff
Frequently Asked Questions
What are the most common Fair Work violations in hospitality?
Underpayment of penalty rates, incorrect casual loading, and missing or inaccurate records — these three account for the majority of hospitality contraventions. The Fair Work Ombudsman specifically targets hospitality because casual employment is prevalent and the Award is complex. Most violations are accidental — but accidental underpayment still triggers full back-payment and can attract civil penalties.
How long must I keep employee records in Australia?
7 years under the Fair Work Act 2009 (Cth). This includes time and wages records, leave records, superannuation contribution records, and any individual flexibility agreements. Records must be legible, in English, and readily accessible. Incomplete or inaccurate records can attract penalties on their own — and if records are missing, the Fair Work Ombudsman may rely on employee estimates, which significantly increases your exposure.
What happens if my restaurant fails a Fair Work audit?
Company penalties can reach $93,900 per contravention — and each employee and each pay period is a separate contravention. For deliberate or systematic underpayment (wage theft), criminal penalties under the Protecting Worker Entitlements Act 2023 (Cth) can reach $7.825 million for companies. The Fair Work Ombudsman can also issue compliance notices, enforceable undertakings, and publicly name your business.
Do I need to give employees a Fair Work Information Statement?
Yes — and failing to do so is itself a breach of the Fair Work Act 2009 (Cth). All new employees must receive the Fair Work Information Statement (FWIS) before or as soon as practicable after starting. Casual employees must also receive the Casual Employment Information Statement (CEIS) at the time of engagement. Both are free from fairwork.gov.au.
Can the Fair Work Ombudsman audit my venue without a complaint?
Yes — and they do, regularly. The Fair Work Ombudsman conducts proactive industry audits based on risk profiling. Hospitality is a priority sector. You do not need an employee complaint for an audit to be triggered. This is why proactive compliance matters more than reactive fixes.
A single mistake in any section above can trigger back-pay across every employee and every pay period.
Most venues that fail a Fair Work audit weren't trying to cut corners — they just didn't have the right information at the right time. This checklist is the starting point. Fitz HR is what you use when you have a specific question.
If you’re evaluating tools to handle these obligations day-to-day, see our comparison of the best HR software for hospitality in Australia — what each option actually does for Award interpretation, casual conversion tracking, and payslip compliance.
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