The Fair Work Commission has reduced Sunday and Public Holiday penalty rates in a number of Hospitality and Retail Awards.
Today, the Fair Work Commission (FWC) handed down its long awaited decision today to reduce Sunday penalty rates in a number of Hospitality and Retail Awards.
For NRA members this decision will affect those businesses operating under the Fast Food Industry Award 2010 (Fast Food Award), the General Retail Industry Award 2010 (Retail Award) and the Restaurant Industry Award 2010 (Restaurant Award).
The Full bench decided to reduce the Sunday penalty rates in the Fast Food and Retail Awards as they found that they did not achieve the objectives of the Modern Awards as “they do not provide a fair and relevant minimum safety net”.
Sunday Penalty Rates
Under the Retail Award the proposed changes to the Sunday penalty rates are:
- Reducing full time and part time employees’ penalty rates from 200% to 150%, and
- Reducing casual employees’ penalty rates from 200% to 175%.
Under the Fast Food Award the proposed changes to the Sunday penalty rates are:
- Reducing full time and part time Level 1 employees only from 150% to 125%, and
- Reducing casual Level 1 employees only from 175% to 150%.
The Full Bench decided not to reduce the Sunday penalty rates for Level 2 and 3 employees under the Fast Food Award as they found these employees were “generally speaking regarded as ‘career’ employees with major chains whereas casual and part time crew members (Level 1 employees) are usually regarded as ‘non-career’ employees”.
The Full Bench also decided that no changes to Sunday rates were needed in respect of the Restaurant Award as the modern award’s objectives are already being met.
Public Holiday Penalty Rates
Under the Retail Award the proposed changes to the Public Holiday penalty rates are:
- Reducing full time and part time employees’ penalty rates from 250% to 225%, and
- Reducing casual employees’ penalty rates from 275/250% to 250%.
Under the Fast Food Award the proposed changes to the Public Holiday penalty rates are:
- Reducing full time and part time employees from 250% to 225%, and
- Reducing casual employees from 275% to 250%.
Under the Restaurant Award the proposed changes to Public Holiday penalty rates are:
- Reducing full time and part time employees’ penalty rates from 250% to 225%; and
- Reducing casual employees’ penalty rates from 275% to 250%.
The Full Bench stated that “The changes the Full Bench proposes to make to Sunday and public holiday penalty rates will result in greater consistency in penalty rate settings in the Hospitality and Retail Awards”.
Although the Full Bench has not reached a decision on how the proposed changes will be transitioned into the Modern Awards it has provided “provisional views” that the reduction of Sunday penalty rates could commence on 1 July 2017 over a series of annual adjustments. This would be in line with any increase to the minimum wage arising from the Annual Wage Review. However the Full Bench will be seeking submissions from interested parties as to the transitional arrangements.
With respect to the public holiday penalty rates, the proposed changes will take effect on 1 July 2017 and variation to the early/late night work loadings in the Fast Food Award and Restaurant Award will take effect in late March 2017.
The National Retail Association will continue to update its members on this matter.
Have all your questions answered
The National Retail Association is pleased to announce a brand new forum series for retailers across Australia.
State of the Retail Nation (SORN) is a new industry forum which will be held in Brisbane, Sydney and Melbourne every 3 months. An online webinar will also be broadcast to all other states and territories.
Each forum will provide a comprehensive update on current issues in the retail industry and give retailers the chance to have their voice heard and questions answered by leading experts.
State of the Retail Nation – March 2017
Melbourne – Mon 27 March
Brisbane – Tue 28 March
Sydney – Wed 29 March
Webinar – Tue 28 March (limited places)
Each forum will start at 7am and conclude by 9am with breakfast provided.
There is no charge for retailers to attend.