Phase in of penalty rates announced

06 June, 2017

In February, the Fair Work Commission (FWC) handed down a historic decision that will reduce Sunday and public holiday penalty rates for the retail and hospitality industry awards.  Whilst recognising that the decision would increase trading hours and provide more hours of work, it was also concerned about the impact on existing workers advising that the new Sunday rate would be phased in.

As a result the FWC has opted for a relatively long phase in period which provides a very small decrease in the Sunday penalty rate in the first year with greater increases in following years. 

For businesses covered by the Fast Food Industry Award and Hospitality Industry (General) Award the new Sunday penalty rates will be phased in over three instalments commencing 1 July 2017, as shown below.

 

Fast Food Award (Level 1 Only)

Hospitality Award

 

Full-time and part-time employees

1 July 2017

150% to 145%

175% to 170%

1 July 2018

145% to 135%

170% to 160%

1 July 2019

135% to 125%

160% to 150%

 

Casual employees (inclusive of casual loading)

1 July 2017

175% to 170%

No Change

1 July 2018

170% to 160%

 

1 July 2019

160% to 150%

 

In the case of the General Retail Industry Award and Pharmacy Industry Award the phase in will be over four instalments given the greater drop between the current and new Sunday penalty rate. 

 

Retail Award

Pharmacy Award

 

Full-time and part-time employees

1 July 2017

200% to 195%

200% to 195%

1 July 2018

195% to 180%

195% to 180%

1 July 2019

180% to 165%

180% to 165%

1 July 2020

165% to 150%

165% to 150%

 

Casual employees (inclusive of casual loading)

1 July 2017

200% to 195%

225% to 220%

1 July 2018

195% to 185%

220% to 205%

1 July 2019

185% to 175%

205% to 190%

1 July 2020

 

190% to 175%

The long phase in period will mean that retail and hospitality businesses will need to wait longer before any meaningful changes can occur, although it also removes some of the political pressure being placed on the Government to introduce legislation to nullify the decision.

In the case of the public holiday penalty rates, the full effect of the change will take effect on 1 July 2017, with the new rates being:

  Award title

  Public holiday penalty rates (%)

  Full-time & part-time

  Casual

  Hospitality Award

  250% to 225%

  275% to 250%

  Restaurant Award

  250% to 225%

  Remains at 250%

  Retail Award

  250% to 225%

  275%/250% to 250%

  Fast Food Award  

  250% to 225%

  275% to 250%

  Pharmacy Award

  250% to 225%

  275% to 250%

Final orders will be issued within the next couple of weeks. Members who subscribe to our award subscription service will receive updates shortly. For further information please contact CCI’s Employee Relations Advice Centre on 9365 7660 or advice@cciwa.com

4 yearly review of modern awards – Penalty Rates – Transitional Arrangements [2017] FWCFB 3001