Packing Shed Workers: Why Most Must Be Classified at Level 2

01

The 3-Month Rule: Schedule A, Clause A.1.2

Under Schedule A, Clause A.1.2 of the Horticulture Award 2020, a Level 1 employee automatically progresses to Level 2 after completing 3 months of industry experience. This is one of the most commonly misunderstood provisions in the Award — and getting it wrong has real consequences.

Automatic Progression After 3 Months

Level 1 employees progress to Level 2 after accumulating 3 months of experience in the horticulture industry. This progression is automatic — it does not require a formal review, assessment, or promotion.

All Industry Experience Counts

The 3-month threshold counts all horticulture industry experience, not just time worked with the current employer. If a worker has spent a season picking fruit for one farm and then moves to a packing shed with another, their previous experience counts towards the 3-month requirement.

Most Available Workers Already Qualify

The reality is that most workers available through labour hire providers have already worked previous seasons in horticulture. Whether they have been picking, packing, pruning, or performing general farm work — if they have 3 months of cumulative industry experience, they must be classified at Level 2 from day one.

02

Level 1 vs Level 2: Award Definitions

The Horticulture Award sets out clear definitions for each classification level. Understanding the distinction between Level 1 and Level 2 is essential for correct classification of packing shed workers.

Level 1 — New Entrant

A Level 1 employee performs routine duties requiring minimal judgment. They work under direct supervision and are typically a new employee to the horticulture industry with no prior experience. Level 1 is designed for workers who are genuinely new to the industry.

Level 2 — Experienced Worker

A Level 2 employee has at least 3 months of horticulture industry experience. They work under general supervision (rather than direct supervision), perform a range of tasks, and exercise limited discretion in their role. This is the classification that applies to most packing shed workers.

The Key Difference

The fundamental distinction is experience and the level of supervision required. Level 1 workers need direct, hands-on supervision for every task. Level 2 workers can operate under general supervision and are expected to exercise some judgment in their work — which is exactly what packing shed work demands.

03

Indicative Duties for Packing Shed Work

The Award provides indicative duties at each classification level. When you compare these duties to the actual work performed in a packing shed, it becomes clear that most tasks fall squarely within Level 2.

Level 1 Indicative Duties

Basic sorting and packing requiring minimal judgment, general labouring tasks, and housekeeping duties. These are entry-level tasks that a worker with no industry experience could perform under direct supervision from day one.

Level 2 Indicative Duties

Sorting and packing beyond Level 1 complexity, operating packing and packaging equipment, using pallet jacks, maintaining records, and performing product testing. These duties require familiarity with processes, some training, and the ability to work without constant direct supervision.

What This Means in Practice

If your packing shed workers are operating machinery, using pallet jacks, grading produce beyond basic sorting, keeping records, or performing quality checks — they are performing Level 2 duties. Classifying them at Level 1 while they carry out these tasks is inconsistent with the Award and creates a compliance risk.

04

Same Job, Same Pay: Award Classification Consistency

One of the most significant compliance risks in packing sheds arises when workers performing identical duties are classified at different levels. This is not just poor practice — it is an Award breach with serious legal consequences.

Same Duties Must Mean Same Classification

If workers in the same role are performing the same duties on the packing line, they must be classified at the same level. You cannot have one worker classified at Level 1 and another at Level 2 when they are doing identical work side by side.

This Is an Award Breach

Paying one worker at Level 1 rates and another at Level 2 rates for the same work is a direct breach of the Horticulture Award. The classification must reflect the duties being performed and the worker's experience — not what is most convenient or cost-effective for the employer.

Accessorial Liability Under s.550 of the Fair Work Act

Under section 550 of the Fair Work Act, any person who is knowingly involved in a contravention can be held personally liable. This means that if a grower or host employer knows (or should reasonably know) that workers are being incorrectly classified and underpaid, they can face penalties as an accessory to the breach — even if they are not the direct employer.

05

Same Job, Same Pay: Labour Hire Legislation

The Closing Loopholes No. 2 Act 2024 introduced new same job, same pay obligations that apply specifically to labour hire arrangements. These rules add another layer of compliance that growers and labour hire providers must understand.

Effective From 1 November 2024

From 1 November 2024, labour hire workers must be paid at least the same as the host employer's directly employed workers who are doing the same work. This applies regardless of the arrangement between the labour hire provider and the host employer.

Significant Penalties Apply

Contraventions of the same job, same pay provisions carry penalties of up to $18,780 per contravention for individuals and up to $93,900 per contravention for a body corporate. These penalties can be applied per worker, per pay period — meaning the financial exposure adds up very quickly.

Both Parties Are Exposed

The legislation places obligations on both the labour hire provider and the host employer. If a grower's directly employed packing shed workers are classified at Level 2 but the labour hire workers doing the same job are classified at Level 1, both parties face compliance risk and potential penalties.

06

What Growers Need to Do

Getting classification right is not optional — it is a legal requirement. Here are the practical steps growers should take to ensure their packing shed workforce is correctly classified and compliant.

Confirm Classification of Direct Workers

Review the classification of every worker you employ directly. Check their horticulture industry experience and ensure they are classified at the correct level based on the Award definitions. If they have 3 or more months of industry experience, they must be at Level 2 or above.

Ensure Labour Hire Workers Are Classified Correctly

Do not assume the labour hire provider has this sorted. Request confirmation that all labour hire workers have been assessed for prior industry experience and are classified at the appropriate level. Under accessorial liability and the same job, same pay legislation, you share responsibility for getting this right.

Match Classification to Actual Duties

Walk the floor of your packing shed and compare the actual duties being performed against the indicative duties for each classification level. If workers are operating equipment, using pallet jacks, grading produce, or performing quality checks, they are performing Level 2 work and must be classified accordingly.

Document Everything

Keep records of each worker's prior industry experience, their classification level, the duties they perform, and any assessments conducted. Good documentation is your first line of defence in the event of a Fair Work audit or dispute.

Need Help Getting Classification Right?

Correctly classifying packing shed workers under the Horticulture Award is critical for compliance. We help growers and labour hire companies review their workforce classifications, identify risks, and put the right systems in place — so you can focus on running your operation.

Book a Free Consultation Back to Resources