Penalty rates for the retail, hospitality, fast-food and pharmacy industries reduced.

In an historic decision, the Full Bench of the Fair Work Commission has reduced Sunday and public holiday penalty rate structures in awards for the hospitality, retail, fast food and pharmacy industry, effective from 1 July 2017.

In providing its decision, the Full Bench stated, amongst other things, that:

  •  a reduction in penalty rates will likely increase employment growth and hours of work available for employees;
  •  the current penalty rate structure does not establish a ‘fair and relevant safety net of conditions of employment’ as they are not ‘proportionate to the disability’; and
  • the changes made will achieve greater consistency in penalty structures across the relevant industries.

The changes are summarised below:

  • General Retail Industry Award 2010

For full time and part time employees, Sunday penalty rates will be reduced from 200% to 150% and public holiday penalty rates will be reduced from 250% to 225%.

For casual employees, Sunday penalty rates will be reduced from 200% to 175% and public holiday penalty rates from 275% to 250%.

  • Fast Food Industry Award 2010

For Level 1 full time and part time employees only, Sunday penalty rates will be reduced from 150% to 125%. Public holiday penalty rates will be reduced for full time and part time employees from 250% to 225%.

For casual employees, Sunday penalty rates will be reduced from 175% to 150% and public holiday penalty rates from 275% to 250%.

  •  Hospitality Industry (General) Award 2010

For full time and part time employees Sunday penalty rates will be reduced from 175% to 150% and public holiday rates will be reduced from 250% to 225%.

For casual employees, there will be no change for Sunday penalty rates but public holiday penalty rates will be reduced from 275% to 250%.

  • Pharmacy Industry Award 2010

For full time and part time employees, Sunday penalty rates (for hours between 7am to 9pm) will be reduced from 200% to 150% and public holiday penalty rates will reduced from 250% to 225%.

For casual employees, Sunday penalty rates (for hours between 7am to 9pm) will be reduced from 200% to 175% and public holiday rates will be reduced from 275% to 250%.

The Commission has also timetabled submissions on the transition of the penalty rates structure.

To read further about this decision, the reasons behind these reductions and the set timetable, see the applicable links below:

Natalie Zurita

Natalie Zurita