Penalty Rates Decision: Employsure

By February 27, 2017Articles

An Employsure Update on Penalty Rates

 

Read an update below from Employsure on how the reduction to Sunday and Public Holiday penalty rates may affect you. Employsure also provides free general workplace advice for Advivo clients, contact us now to receive your reference number.

 
Change is coming, however, you do not need to act now.

The Fair Work Commission (FWC) has announced that Sunday and public holiday penalty rates in a number of Modern Awards in the hospitality and retail sectors will be reduced.

Right now, there are no changes to make. This is an update only, and we will contact you again once the FWC has confirmed its position in respect to the timing of the implementation of the changes.

We will, of course, let you know what action you should take as a result of this decision once these details are confirmed by the FWC.
 

Who does this decision impact?

The decision only impacts employers that engage employees covered by the following Modern Awards:

  • Fast Food Industry Award 2010
  • General Retail Industry Award 2010
  • Hospitality Industry (General) Award 2010
  • Pharmacy Industry Award 2010
  • Restaurant Industry Award 2010

If your employees are not covered by one of the above Awards, your business will not be affected by the decision on penalty rates.

Please be advised that whilst the Registered and Licensed Clubs Award 2010 was included in this review of penalty rates, the FWC has not made any determinations in respect of this Award at this time.
 

What if my business has employees covered by one of the above Modern Awards?

The FWC outlined that any reductions to Sunday penalty rates under the affected Awards will be phased in. Further details on how these changes will be implemented are yet to be confirmed by the FWC and as a result, no employee’s rates of pay should be reduced at this point in time.

The reduction in public holiday penalty rates will be effective from 1 July 2017. As we do each year, we will let you know the new rates to pay your employees for the new financial year, taking into account the reduced public holiday penalty rate.
 

What are the changes?

General Retail Industry Award 2010:

  • permanent employees:
    • Sunday penalties will be reduced from 200% to 150%
    • public holiday penalties will be reduced from 250% to 225%
  • casual employees:
    • Sunday penalties will be reduced from 200% to 175%
    • public holiday penalties will be reduced from 275% to 250%

Hospitality Industry (General) Award 2010:

  • permanent employees:
    • Sunday penalties will be reduced from 175% to 150%
    • public holiday penalties will be reduced from 250% to 225%
  • casual employees:
    • Sunday penalties will remain unchanged at 175%
    • public holiday penalties will be reduced from 275% to 250%

Fast Food Industry Award:

  • permanent employees:
    • Sunday penalties will be reduced from 150% to 125% (level one employees only)
    • public holiday penalties will be reduced from 250% to 225%
  • casual employees:
    • Sunday penalties will be reduced from 175% to 150% (level one employees only)
    • public holiday penalties will be reduced from 275% to 250%

Pharmacy Industry Award:

  • permanent employees:
    • Sunday penalties will be reduced from 200% to 150% (7.00am – 9.00pm only)
    • public holiday penalties will be reduced from 250% to 225%
  • casual employees:
    • Sunday penalties will be reduced from 200% to 175% (7.00am – 9.00pm only)
    • public holiday penalties will be reduced from 275% to 250%

Restaurant Industry Award 2010:

  • permanent employees:
    • Sunday penalties will remain unchanged at 150%
    • public holiday penalties will be reduced from 250% to 225%
  • casual employees:
    • Sunday penalties will remain unchanged at 150% (for level one and two employees) and 175% (for level three to six employees)
    • public holiday penalties will remain unchanged at 250%

We will contact you again once the FWC has confirmed when the reductions to Sunday penalty rates take effect.

An Update from Employsure

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