What is piecework?
Pieceworkers are generally paid on the basis of results achieved or components produced (e.g. a fruit picker paid on a rate per bucket of fruit picked).
Under the Horticulture Award 2010, you may enter into an agreement to pay piecework rates with a full-time, part-time or casual employee. In this situation, you could pay the employee piece rates instead of the rate of pay that would otherwise apply to that employee.
What can be agreed between an employer and employee?
The piecework rate agreed between the employer and the employee:
- must enable the average competent employee to earn at least 15% more per hour than the minimum hourly rate prescribed in the Horticulture Award 2010 for the relevant employment status and classification level
- must be paid for all work performed in accordance with the piecework agreement
- must be in writing and signed by the employee and employer.
However, a piecework employee is not guaranteed to earn the minimum ordinary time weekly or hourly wage in the Horticulture Award 2010 relevant to their employment status and classification level, as the employee’s earnings depend on their productivity.
Which conditions in the Horticulture Award 2010 do not apply to a piecework employee?
- Ordinary hours of work and rostering (clause 22)
- Overtime (clause 24)
- Meal allowance (clause 24.3)
Important!
- If the pieceworker is full-time or part-time they will still receive the leave entitlements under the National Employment Standards.
- The piecework rate is also subject to phasing.
Calculating piecework rates - an example
Example
Webber and Sons Orchards plan to enter into a piecework agreement with Fiona, an adult casual picker. The piecework rate for Fiona is calculated as follows:
Weekly wage rate level 1 (see clause 14) $ 569.90
Plus 15% piecework loading: $ 85.49 ($569.90 x 15%)
Plus 25% casual loading: $ 142.48 ($569.90 x 25%)
Total: $ 797.87
Daily wage rate: $ 159.57 ($797.86 ÷ 5)
The daily rate is then divided by the bin or kg rate per day that an average competent pieceworker can achieve to determine the piecework rate.
The rate for an average competent pieceworker may vary day-to-day depending upon variable things like weather conditions; ripening process; type of bin; type of picking (e.g. selective or stripping); size of trees/plants; density of trees/plants and other variable conditions. These different variables need to be factored into a piecework agreement. If the piecework rate is to be varied, it must be agreed with the employee and be in writing and signed by the employee.