As news of the Fair Work Commission’s decision to cut Sunday penalty rates sinks in, Workwise wishes to remind our members and clients that the cut to rates will be phased-in over four financial years in the retail and pharmacy sectors and over three financial years in hospitality and fast food.
The first cut in penalty rates in all four sectors from July 1 will be relatively small, while cuts in later years will be bigger.
Sunday rates for full-time retail workers will fall from 200% on July 1 to 195%, while those for full-time employees in hospitality will fall from 175% to 170% on the same date.
The full bench has been deliberating on how to reduce hardship flowing from the decision by phasing in cuts over a number of years through reductions on July 1 of each year, meaning lower Sunday penalty rates would be partly offset by increases in the minimum wage.
Both United Voice and the SDA indicated that they will challenge the decision to cut penalty rates in the Federal Court, meaning the first cut due on July 1 might not go ahead until the case is decided.
The transition for reductions in Sunday penalty rates in the four sectors is:
Retail Award: Full-time and part-time employees;
1 July 2017: 200% to 195%
1 July 2018: 195% to 180%
1 July 2019: 180% to 165%
1 July 2020: 165% to 150%
Casual employees (inclusive of casual loading);
1 July 2017: 200% to 195%
1 July 2018: 195% to 185%
1 July 2019: 185% to 175%
Pharmacy Award: Full-time and part-time employees;
1 July 2017: 200% to 195%
1 July 2018: 195% to 180%
1 July 2019: 180% to 165%
1 July 2020: 165% to 150%
Casual employees (inclusive of casual loading);
1 July 2017: 225% to 220%
1 July 2018: 220% to 205%
1 July 2019: 205% to 190%
1 July 2020: 190% to 175%
Fast Food Award: Full-time and part-time employees – Level 1 only;
1 July 2017: 150% to 145%
1 July 2018: 145% to 135%
1 July 2019: 135% to 125%
Casual employees (inclusive of casual loading) – Level 1 only;
1 July 2017: 175% to 170%
1 July 2018: 170% to 160%
1 July 2019: 160% to 150%
Hospitality Award: Full-time and part-time employees;
1 July 2017: 175% to 170%
1 July 2018: 170% to 160%
1 July 2019: 160% to 150%
Casual employees;
Unchanged at 175%.
The SDA has called on employers “While the appeal is underway…………. to show that they value their staff and commit not to cut weekend and public holiday rates.”
Unions will launch a television and online advertising campaign asking key MPs to back the bill currently before parliament to prevent the pay cuts.
The ads will run across regional Queensland, NSW and Victoria, specifically targeting independent MP Cathy McGowan, Nationals MP George Christensen and Liberal Ann Sudmalis.
Federal Opposition leader Bill Shorten and his workplace spokesperson Brendan O’Connor said Prime Minister Malcolm Turnbull could support Labor legislation preventing cuts to take-home when parliament resumed on June 13.
The Australian Hotels Association and Tourism Accommodation Australia said they would have preferred the cuts to be phased over two years, but it gave certainty to employers and employees.
The chair of the TAA, former ACTU president and Federal Labor Minister Martin Ferguson, said the Commission had taken a tough but essential decision.
Members are reminded to contact the Workwise office with any queries or for assistance on the phasing in, or for assistance with wage rates due to the recent increase to federal wages via the Federal Wage Case review.
The information contained in this article does not constitute and should not be relied upon as ‘legal advice’. Workwise recommends that legal advice be sought from a suitably qualified legal practitioner prior to any action being taken. Such advice may be accessed via Workwise.