If you run a business that sells, services, repairs, maintains, tows, dismantles, or details vehicles (or sells vehicle parts, accessories, fuel, or oils) and you employ staff to do that work, you’re likely covered by the Vehicle Award [MA000089].
From 29 May 2020, vehicle manufacturing coverage shifted from the old Vehicle Award to the Manufacturing Award (MA000010), while MA000089 continued as the Vehicle Repair, Services and Retail Award.
In addition, from 1 July 2025, the Annual Wage Review increased all minimum award rates and allowances by 3.5%.
In this guide, we break down who the Award covers, how to classify roles, and the key pay and conditions employers need to apply.
Vehicle Repair, Services and Retail Award: A Quick Summary for Busy Managers
Short on time? This is what you need to know:
The Vehicle Repair, Services and Retail Award 2020 [MA000089] sets the minimum pay and conditions for many roles in vehicle repair, service, and retail.
What managers should check:
- Award coverage: This Award is often confused with the Road Transport and Distribution Award (where the work is mainly transport) or the Car Parking Award (where the work is mainly parking and not repairs or servicing).
- Employee type: Full-time, part-time, and casual employees can have different pay outcomes. (Casual rates use a loading table that varies by day and time.)
- Employee classification: Most roles fall under either Vehicle industry repair, services and retail (RS&R) (Levels 1 to 5) or Tradesperson or equivalent (Level I and Level II).
- Hours and timing of work: Weekend and public holiday work, overtime, and missed breaks can trigger higher rates.
Two points to watch out for:
- Paying annual leave incorrectly by omitting amounts that count as normal wages (for example, first aid allowance or over-award payments) or by wrongly including overtime or expense reimbursements.
- Missing the 150% payment rule when an employee works too long without a meal break (over 5 hours, or 6 hours where an agreement applies), or works through their meal break.
Coming up: Award dates and deadlines you need to know
| Date | What’s happening? |
| March to June 2026 | The Fair Work Commission conducts its annual review of the National Minimum Wage and all modern award rates, including the Vehicle Award. |
| 1 July 2026 | Payday Superannuation begins. Employers must pay super contributions at the same time as wages, replacing the old quarterly system. |
Award Basics
The Vehicle Repair, Services and Retail Award 2020 sets the minimum pay and conditions for many workplaces mainly involved in the vehicle repair, service and retail industry, such as selling, servicing, repairing, maintaining, towing, dismantling or restoring vehicles, vehicle parts and accessories, fuel, and tyre-related work.
It covers key pay rules like minimum hourly and weekly rates, plus additional payments and rules such as weekend and public holiday penalties, overtime rates, allowances, and ordinary hours arrangements.
The Award works alongside the National Employment Standards (NES), which set the minimum legal entitlements for most employees (including core leave and public holiday rules). The Award then adds industry-specific minimum pay rates and extra conditions on top of the NES.
Who’s covered under the Vehicle Industry Award?
You’re generally covered if your business operates in the vehicle industry and your employees’ roles fit within the Award’s classifications.
Businesses covered
This usually includes businesses involved in:
- Selling vehicles, parts, and accessories.
- Selling fuel, gas, oils, and similar vehicle “running requirements” (includes roadhouses run by the same business).
- Servicing, repairing, and maintaining vehicles and parts (including repair and service work connected to a motor vehicle rental business).
- Tyre fitting, retreading, and repair.
- Dismantling, wrecking, recycling, restoring, customising, and modifying vehicles.
- Roadside assistance and towing.
- Preparing vehicles for sale (including assembly), storing vehicles, washing and detailing, and running driving schools.
The Award explains that “vehicles” cover cars, trucks, motorcycles, caravans, trailers, and trailerable boats and jet skis (but not larger vessels or bicycles).
Employees covered
It commonly covers roles like:
- Tradespeople and apprentices (e.g., mechanics, automotive technicians, panel beaters, painters, welders, and automotive electricians).
- Sales staff.
- Driveway attendants, console operators, and roadhouse attendants.
- Car washers, polishers, and detailers.
- Tyre fitters and wheel aligners.
- Tow truck drivers, windscreen fitters and repairers, and service reception staff.
It can also apply to labour hire businesses and their employees when they’re placed with a vehicle industry business.
Who isn’t covered under the Vehicle Industry Award?
You’re generally not covered by this Award if the work is mainly:
- Car parking (where the business doesn’t perform repairs or services).
- Motor vehicle rentals, unless the work is connected to vehicle repair, service, and maintenance.
- Car and truck driving, where driving is the main job (e.g., a delivery driver or transport role), unless it’s associated with vehicle-industry activities (such as towing or roadside assistance).
- Driving instructors.
- Clerical work, other than service reception.
- Repair, manufacturing, and servicing of larger boats and vessels.
- Vehicle manufacturing.
If this Award doesn’t fit, Fair Work suggests checking other awards, including the:
Coverage self-check: Does the Vehicle Award apply?
Consider whether the following statements apply to your business and the role you’re evaluating:
- I run a business in the vehicle repair, service, or vehicle retail industry (e.g., a mechanic workshop, smash repairs, dealership service department, tyre and wheel business, or wrecking and dismantling yard).
- The employee’s day-to-day duties fit the kinds of roles covered by this Award (e.g., vehicle servicing and repairs, mechanical or auto electrical work, tyre fitting, towing, parts interpreting, vehicle sales, and service reception).
- The employee’s primary work isn’t covered elsewhere (e.g., standalone car parking work, or vehicle manufacturing covered under the Manufacturing Award [insert link]).
- There’s no enterprise agreement or other enterprise instrument covering the employee (if there is, it generally sets pay and conditions, subject to the usual rules).
If most of these apply, the employee is likely covered by the Vehicle Repair, Services and Retail Award 2020 [MA000089].
For the exact coverage boundaries, it’s safest to cross-check the Vehicle Award or the Fair Work’s Award Finder.
Determining Vehicle Repair, Services and Retail Award [MA000089] Requirements
Under the Vehicle Industry Repair, Services and Retail Award, employees are sorted in 2 ways:
- By employment type (full-time, part-time, or casual).
This affects things like how you roster hours, when overtime applies, and the minimum time you need to pay someone for a shift. - By classification. This is based on what the employee actually does day to day, plus their skills, training, and level of responsibility. You then match the role to the closest classification level.
The Award uses 2 classification categories:
- Vehicle industry RS&R employees (Levels 1 to 5).
- Tradesperson or equivalent (Level I and Level II).
Employment types
The Award uses 3 main employment types: full-time, part-time, and casual.
Full-time
A full-time employee works an average of 38 ordinary hours per week, which can be averaged over a work cycle of up to 28 days.
Ordinary hours can be averaged over different work cycles, including 38 hours over 7 days, 76 hours over 14 days, 114 hours over 21 days, or 152 hours over 28 days (or another agreed cycle that still averages 38 hours per week).
Ordinary hours are worked not more than 5 days in any week, and an employee can’t be required to work more than 10 ordinary hours per day (though up to 12 hours per day can be introduced by agreement).
Full-time employees are ongoing staff and usually get the standard entitlements that apply to permanent employees (like paid annual leave).
Part-time
A part-time employee works less than 38 ordinary hours per week, has a reasonably predictable schedule, and receives pro-rata equal pay and conditions to those of full-time employees doing the same kind of work.
Casual
A casual employee is paid an hourly rate plus a casual loading that varies depending on when the hours are worked (e.g., 25% for Monday to Friday between 6.00 am and 6.00 pm, with higher loadings at other times).
They must be engaged and paid for at least 2 continuous hours each time they’re called to work.
For full details (including casual loadings and any role-specific rules), check the Award.
Did You Know?
In some situations, casual employees can ask to move to part-time or full-time work under the NES. For more details, see the Fair Work Ombudsman’s guidance on casual conversion and becoming a permanent employee.
Classifications and levels
Under the MA000089 Award, you’ll notice the letter “R” next to each classification. This is simply the Award’s label for its classification levels (e.g., R1–R5 for Vehicle industry RS&R employees, and R6–R7 for Tradesperson or equivalent Levels I and II). It’s just shorthand for the level.
Vehicle industry RS&R employees
The Vehicle industry RS&R employee category groups employees into Levels 1–5. Below, we show Levels 1 and 2 (RS&R) as examples:
| Levels | Requirements | Typical roles |
|---|---|---|
| Level 1 (Entry) R1 | Little or no training yet (may be doing induction). You must move them to Level 2 within 3 months. Basic manual support work under direct supervision (cleaning or labouring). | Car cleaner or washer, workshop or office cleaner, car polisher (by hand), detailer, driveway or parking attendant, process worker, tradesperson’s assistant. |
| Level 2 R2 | Moves to this level after max. 3 months at Level 1. Still supervised, but can handle simple tasks more independently. Basic service and maintenance tasks. Simple instructions. Basic customer service. Can spot minor mistakes or quality-check their own work. | Battery repairer, brake servicer (first 6 months), exhaust repairer (first 6 months), courtesy car driver (up to 3 tonnes), lubritorium attendant, tyre fitter, tradesperson’s assistant. |
Tradesperson or equivalent
Below are Level I and Level II (Tradesperson) as examples:
| Levels | Requirements | Typical roles |
|---|---|---|
| Tradesperson or equivalent—Level I R6 | Trade-qualified (Trade Certificate/Tradesperson’s Rights Certificate or equivalent). Skilled trade workers work with limited supervision. Responsible for quality. May help train others and plan work. | Motor mechanic or automotive technician, automotive electrician, panel beater, painter, welder. |
| Tradesperson or equivalent— Level II R7 | Trade-qualified plus Certificate IV (AQF 4) automotive qualification (e.g., diagnosis, overhauling, body repair, electrical, performance). Advanced technical/diagnostic work above Level I. Complex fault finding. Mentors others. May coordinate workflows. | Master Technician, Automotive Technical Advisor, Master Diagnostic Technician, Workshop Technical Advisor. |
For the full list of classification levels, refer to the Award.
Vehicle Award Pay Guide and Entitlements Overview
Under MA000089, the minimum pay rates and conditions set the baseline for what you need to pay covered employees and the key entitlements they receive, including ordinary hours, overtime, weekend and public holiday penalties, allowances, and leave.
Minimum base rates
Let’s look at how the classification levels and minimum rates are set out for the 2 main categories in this Award (using our examples above):
| Levels | Minimum weekly rate (full-time) | Minimum hourly rate (full-time and part-time) |
|---|---|---|
| Vehicle industry RS&R employee Level 1 R1 | $922.70 | $24.28 |
| Vehicle industry RS&R employee Level 2 R2 | $948.00 | $24.95 |
| Tradesperson or equivalent Level I R6 | $1,068.40 | $28.12 |
| Tradesperson or equivalent Level II R7 | $1,168.90 | $30.76 |
| *This information comes from the Fair Work Pay Guide, last updated on 26 June 2025. | ||
Here’s a quick, practical example of how the pay rates work using a Vehicle industry RS&R employee at Level 2:
- If they work full-time, you pay at least the minimum weekly rate of $948.
- If they work part-time, you pay the minimum hourly rate of $24.95 for the hours they work. For example, if they work 20 hours per week, that’s $499 per week (20 × $24.95).
- If they’re casual, you pay the same base hourly rate plus a casual loading. For example, if those 20 hours are worked Monday to Friday between 6.00 am and 6.00 pm, the casual loading is 25%.
- 25% of $24.95 is $6.24, so the casual rate is $31.19 per hour ($24.95 + $6.24).
- Over 20 hours, that’s $623.80 per week (20 × $31.19).
Look up the day and time in the casual loading table to ensure you apply the correct loading.
Pro Tip
Find the latest pay rates using the Fair Work Ombudsman’s Pay and Conditions Tool (PACT) or the Fair Work Commission’s Modern Awards Pay Database.
Penalty rates
Penalty rates are higher pay rates that apply when an employee works certain times, such as weekends, public holidays, or particular shift times. They’re paid on top of the employee’s ordinary base rate.
| When worked | % of ordinary hourly rate (full-time and part-time) |
|---|---|
| Saturday | 150% |
| Sunday | 200% |
| Public holiday | 250% |
Let’s see how the rates work in practice using a Tradesperson or equivalent Level II. The minimum ordinary hourly rate for this level is $30.76.
- If they work ordinary rostered hours on Saturday (full-time or part-time), they’re paid 150%, which is $46.14 per hour ($30.76 × 1.5).
- If they work ordinary rostered hours on Sunday (full-time or part-time), they’re paid 200%, which is $61.52 per hour ($30.76 × 2).
For casuals, weekend and public holiday rates are handled through the casual loading table, so you pay the casual rate for the time worked, rather than adding a separate weekend penalty on top.
- For example, if those hours are worked on Saturday, the casual loading is 75%, so the casual Saturday rate is $53.83 per hour ($30.76 × 1.75).
- If worked on Sunday, the casual loading is 125%, so the casual Sunday rate is $69.21 per hour ($30.76 × 2.25).
Casual loadings don’t stack with other loadings, so you apply the single correct loading for the day and time worked.
For other penalty rate rules (including shiftwork and special rules for some roles), refer to the Award.
Overtime rules and rates
Under the Motor Vehicle Repair, Services and Retail Award, overtime is the higher rate you pay when an employee works outside their ordinary hours (for full-time employees) or beyond their agreed hours (for part-time employees).
| When overtime is worked | Full-time and part-time employees (% of minimum hourly rate of pay) |
|---|---|
| Monday to Saturday (first 3 hours) | 150% |
| Monday to Saturday (after 3 hours) | 200% |
| Sunday | 200% |
| Public Holiday | 250% |
Note: If the Sunday or public holiday hours are overtime hours, you pay the overtime rate for that day. It’s not paid twice as “overtime plus penalty.”
To see this in action, here’s an example using a Vehicle industry RS&R employee Level 2, whose minimum base rate is $24.95 per hour.
If they’re a full-time or part-time employee and work 2 hours of overtime on a Monday, those overtime hours are paid at 150% (because it’s within the first 3 overtime hours on a Monday to Saturday). That means their overtime rate is $37.43 per hour ($24.95 × 1.5). For 2 hours, they’d earn $74.85.
Casuals can also get overtime, but you use the casual overtime loading rates set out in the pay guide (you don’t add a separate casual loading again on top). For the first 3 overtime hours, the casual overtime loading is 75%, so the rate is $43.66 per hour ($24.95 × 1.75).
Did You Know?
Under this Award, an employee can take paid time off instead of overtime pay, but only if the employer agrees. It’s taken at the overtime equivalent (e.g., 1 hour at time-and-a-half equals 1.5 hours off) and is usually taken within 4 weeks (or 8 weeks if up to 8 hours are banked by agreement).
Breaks
Under the Vehicle Repair, Services and Retail Award, breaks are the rest periods employees are given during a shift, such as meal breaks and tea breaks.
| Break type | What’s the rule | Paid or unpaid |
|---|---|---|
| Meal break | Must be 30 to 60 minutes. An employee generally shouldn’t be required to work more than 5 hours without a meal break (or 6 hours if there’s a majority agreement). | Unpaid If missed: 150% (until a break is allowed) |
| Tea break | An employer may provide 1 morning or afternoon tea break of up to 15 minutes. If tea breaks are unpaid, they must be limited to 15 minutes. If both morning and afternoon tea breaks are provided on the same day, at least 1 must be paid. | Paid or unpaid (depends on how it’s provided) |
For other break rules (including overtime crib breaks, rest breaks between shifts, and special rules for some roles), refer to the Award.
Allowances
Under the Vehicle Repair, Services and Retail Award, allowances are extra amounts you pay on top of base rates when certain duties, conditions, or expenses apply.
The Award has both wage-related allowances (extra pay for specific duties or working conditions) and expense-related allowances (reimbursements for certain work-related costs).
Here are a couple of examples for both types of allowances:
Wage-related allowances
| Allowance type | When it applies | Amount |
|---|---|---|
| Leading hand | When someone is put in charge of a team of employees. |
|
| First aid | When an employee has first aid qualifications and is appointed to perform first aid duty. | $21.37 per week |
Expense-related allowances
| Allowance type | When it applies | Amount |
|---|---|---|
| Meal allowance (overtime) | When an employee works more than 1.5 hours of overtime without being notified the day before (or earlier), a meal must be supplied, unless the employee can reasonably go home. | $17.93 per meal |
| Vehicle allowance | When an employee has to use their own car for work. | $0.98 per kilometre |
For the complete list of allowances, refer to the Award.
Leave entitlements
Most leave entitlements come from the NES, which applies regardless of the Award. The Vehicle Repair, Services and Retail Award then adds extra rules for some types of leave. For this guide, we’ll focus on annual leave.
Annual leave
Let’s take a look at the key information for annual leave:
- Who gets annual leave: Full-time employees get 4 weeks’ paid annual leave each year. Part-time employees accrue the same entitlement on a pro-rata basis. Casual employees don’t receive annual leave (the casual loading makes up for this).
- Annual leave loading: When a day worker takes annual leave, they’re paid for the ordinary hours they would’ve worked and receive a 17.5% leave loading.
- Annual leave pay inclusions: Annual leave pay is based on ordinary hours and can include first aid allowance and any over-award payment in the contract, but it doesn’t include overtime, special rates, or expense reimbursements.
- Annual leave in advance: An employer and employee may agree in writing to take annual leave before it accrues, and the agreement must state the amount and start date.
- Cashing out annual leave: Only by written agreement. Employees must keep at least 4 weeks of accrued leave and can cash out up to 2 weeks of accrued leave in any 12-month period.
- Excessive leave accruals: “Excessive” means more than 8 weeks of accrued annual leave, and the Award sets extra rules for directions and requests to reduce it.
For full details (including shiftworker annual leave rules, shutdowns, and untaken leave on termination), refer to the Award.
Other NES leave
Employees under the Vehicle Award also get leave from the NES, including:
- Personal/carer’s leave and compassionate leave.
- Parental leave and related entitlements.
- Community service leave (e.g., jury duty or emergency service activities).
- Family and domestic violence leave (with extra confidentiality rules around handling records and payslips).
Pro Tip
You can use the Fair Work Ombudsman’s Leave Calculator to check how much leave applies to your role.
How To Determine Vehicle Repair, Services and Retail Award Coverage
Getting Award coverage right helps employers apply the correct pay rates and conditions from day one and avoids costly fixes later.
Vehicle Repair, Services and Retail Award [MA000089]: A practical, real-world example
To see how the rules work in real life, here’s a simple workshop scenario:
A 34-year-old full-time Tradesperson or equivalent Level I employee:
- Works in a vehicle repair workshop doing qualified trade duties.
- Is rostered on Saturday, 8:00 am to 4:00 pm (8 hours), then stays back 2 extra hours (to 6:00 pm).
How the Award applies:
- Classification and base rate: For Tradesperson or equivalent Level I, the minimum base rate is $28.12 per hour.
- Saturday rate: Ordinary hours worked on Saturday are paid at 150%.
- Overtime: The extra 2 hours after the rostered finish are overtime, paid at 150% (first 3 overtime hours, Monday to Saturday).
- Meal allowance: A meal allowance can apply if the employee works more than 1.5 hours overtime and wasn’t notified the previous day (unless a meal is supplied or they can reasonably go home).
Pay summary:
| Hour type | Calculation | Total |
|---|---|---|
| 8 Saturday hours (ordinary) | 8 × ($28.12 × 1.5) | $337.44 |
| 2 overtime hours (Saturday) | 2 × ($28.12 × 1.5) | $84.36 |
| Meal allowance (if it applies) | Flat amount | $17.93 |
| Total | $439.73 |
Common scenarios and compliance tips
Below are a few real-world scenarios employers often run into, with quick checks to help stay compliant.
1. Workshop hires a “trade assistant” who mostly cleans, washes cars, and does basic support work
Key checks:
- Vehicle Repair, Services and Retail Award coverage is likely if the business is in vehicle repair, service, or retail work.
- Classify based on what the employee actually does day to day (not the job title).
- If they’re new and untrained, check whether Level 1 applies and reclassify to Level 2 within 3 months.
2. Dealership or workshop uses casuals on weekends and public holidays
Key checks:
- Confirm the correct employment type (casual vs. full-time or part-time).
- For casuals, apply the correct casual loading for the day and time worked (don’t add separate weekend or public holiday penalties on top).
- Check minimum engagement for casual shifts (minimum 2 continuous hours each time they attend).
3. Employee has built up a big annual leave balance and wants to take time off
Key checks:
- “Excessive” annual leave is more than 8 weeks (10 weeks for shiftworkers).
- The employer and employee should first try to agree on a plan to reduce the balance.
- If there’s no agreement, the Award sets rules for directions and requests (e.g., leave is taken in blocks of at least 1 week, and the timing must be at least 8 weeks away and within 12 months).
Common employer mistakes to avoid
Here’s a simple rundown of what to avoid under the Award:
- Misclassifying staff (putting someone in the wrong level, or too low for the work they actually do).
- Forgetting what casual rates include (casual rates use the Award’s casual loading table, and the loadings don’t stack on top of other loadings).
- Missing allowances or not showing them clearly (e.g., first aid, leading hand, meal allowance for overtime, or vehicle use allowances, which should be listed separately).
- Not keeping pay rates up to date (minimum rates and some allowance amounts can change, so it’s important to check the latest Fair Work Pay Guide).
Glossary
Accrued leave
When an employee has built up leave over time and can take it later (e.g., annual leave).
Day worker
An employee who works ordinary day hours (not shiftwork) under the Award’s rules. For example, a mechanic rostered Monday to Friday, 8:00 am to 4:00 pm (no night shifts).
Loading
An extra percentage paid on top of the base rate (e.g., 25% casual loading instead of paid leave).
Ordinary hours
The standard hours an employee is rostered to work at their base rate (before overtime applies).
Over-award payment
Extra pay above the Award minimum (e.g., paying $32 per hour when the Award minimum is $28.12 per hour to attract or retain staff).
Pro-rata
A proportional amount based on hours worked (e.g., part-time leave and pay are calculated based on the hours worked).
Work cycle
The period used to average ordinary hours, such as a weekly, fortnightly, or 28-day cycle.
Resources and Links
For official details and templates, see:
- Vehicle Repair, Services and Retail Award 2020 [MA000089]: The full Award text.
- Fair Work Information Statement (FWIS): A short summary of NES rights and employer obligations.
- Fair Work Record-Keeping Guidance: What to keep for pay records and payslips.
- Annual Leave Cash-Out Agreement: A template for cashing out annual leave.
- Annual Leave In Advance Agreement: A template for taking annual leave before it accrues.
FAQs
What award do car sales come under?
Car sales roles are usually covered by the Vehicle Repair, Services and Retail Award 2020 [MA000089] when the business is in the vehicle industry, and the employee fits the Award’s classifications (e.g., vehicle salesperson).
What does the Vehicle Award cover?
It sets minimum pay and conditions for many vehicle industry jobs, including selling vehicles, parts and accessories, fuel retail linked to the vehicle business, and vehicle repair and servicing work (among other activities listed in the Award summary).
What are the categories under the Vehicle Award?
Classifications fall under 2 main categories: Vehicle industry RS&R employees (Levels 1–5) and Tradesperson or equivalent (Levels I and II).
Disclaimer
The information provided here is a summary only and does not constitute legal advice. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Laws change frequently, and outcomes may vary depending on your business circumstances. We recommend consulting a qualified employment lawyer before making decisions related to workforce management. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.