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Penalty Rates cut for some Employees

Modern Award classification and compliance guide for employers

On 23 February 2017 the Commission handed down its decision in relation to applications made by various employer groups seeking a review of penalty rates in some Awards.

Sunday penalty rates were reduced for employees covered under 4 Awards, and Public Holiday penalty rates were reduced for employees covered under 5 Awards – below is a summary of the 550 page decision:

SUNDAY PENALTY RATES

Hospitality Industry (General) Award 2010 – Full-time and part-time employees only – reduction from 175% to 150% (no change for casual employees)

Fast Food Industry Award 2010 – Level 1 Employees only, Full-time and part-time employees – reduction from 150% to 125%; Casual employees – reduction from 175% to 150%

General Retail Industry Award 2010 – Full-time and part-time employees – reduction from 200% to 150%; Casual employees – reduction from 200% to 175%

Pharmacy Industry Award 2010 – 7:00am to 9:00pm only, Full-time and part-time employees – reduction from 200% to 150%; Casual employees – reduction from 200% to 175%

PUBLIC HOLIDAY PENALTY RATES

Restaurant Industry Award 2010 – Full-time and part-time employees – reduction from 250% to 225%; Casual employees – no change from 250%

Hospitality Industry (General) Award 2010 – Full-time and part-time employees – reduction from 250% to 225%; Casual employees – reduction from 275% to 250%

Fast Food Industry Award 2010 – Full-time and part-time employees – reduction from 250% to 225%; Casual employees – reduction from 275% to 250%

General Retail Industry Award 2010 – Full-time and part-time employees – reduction from 250% to 225%; Casual employees – reduction to 250%

Pharmacy Industry Award 2010 – Full-time and part-time employees – reduction from 250% to 225%; Casual employees – reduction from 275% to 250%

The Commission has proposed that the above changes will (in full or in part) take effect from 1 July 2017.  Fair Work Centre will keep all Members updated.

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