Platform Overview

Ratings Season: Penalty Rates and the Fair Work Commission

This week the Fair Work Commission has handed down its ruling in the weekend penalty rates review that has been afoot since 2015. The decision has received mixed reviews from a range of industry leaders, however the Commission hopes the cuts will boost employment and improve the consumer experience in services industries.

Every business is different. We recommend consulting an employment lawyer to see the implications of the changes for your business.

Who will be affected?

The Fair Work Commission has made penalty rate cuts which will affect employees in the fast food, hospitality, retail, and pharmacy industries. Notably, restaurant and cafe employees will not be affected.

See the full summary of the Fair Work Commission decision here.

What are the penalty rate cuts being implemented?

The nominated transition period is four years, with full implementation of penalty rate cuts across the affected sectors by 2020. Employees in fast food or hospitality will have Sunday penalty rates reduced by 5 per cent this year, and 10 per cent in 2018 and 2019 respectively. Similarly, retail or pharmacy employees will have their Sunday pay cut by 5 per cent this year, but it will reduce by a further 15 per cent every year until 2020.

What has been the reaction to the cuts?

The Turnbull government has supported the penalty rate cuts, citing benefits for small business owners being able to afford to keep their businesses open on Sundays. While retailers stand to enjoy benefits from the changes, National Retail Association chief executive Dominique Lamb has questioned the decision in regards to the lengthy transition period, stating the retail industry would have favoured a two year period in which to fully implement the cuts.

What does this mean for small business owners?

The Fair Work Commission hopes that by reducing the wages payable to Sunday staff across the aforementioned industries business owners will hire more staff on, improving both the quality of their service and bolstering casual employment. The effects of the cuts in practice are yet to be seen.

If you are unsure how this will affect your business, we recommend getting in touch with an employment lawyer.

Let us know what you think about the Fair Work Commission’s penalty rate cuts by tagging us #lawpath or @lawpath

Most popular articles
You may also like
Recent Articles

Get the latest news

By clicking on 'Sign up to our newsletter' you are agreeing to the Lawpath Terms & Conditions

Share:

Limited seats available , register our free live webinar today!

12:00pm AEDT
Tuesday 18th October 2022

This webinar will cover all the legal, tax and accounting considerations surrounding the first year of a new business.

By clicking on 'Register for webinarr' you are agreeing to the Lawpath Terms & Conditions

You may also like

As a general rule, signing on someone else's behalf is legal so long as you are authorised to sign for them. Find out more here.
Do you know what anti-competitive behaviour is? Read this article to find out and to find out how it may affect your business.
Would you like to know what business licences you need for your business? Check out this article to find out.