Services

Sunday and Public Holiday Penalty Rate cut timetable confirmed - 9 June 2017

As we reported at the time, in February this year the Fair Work Commission (FWC) ruled to cut Sunday penalty rates in the retail, pharmacy, fast food and hospitality sectors.  The FWC has now ruled on the implementation of the reductions – which are to be phased in over the next four years – starting on 1 July 2017.

Partner Andrew Tobin and Law Graduate Emma Scotney discuss the recent Fair Work Commission ruling.

When will the cuts take effect?

On 6 June 2017 the FWC ruled that Sunday penalty rate cuts will be phased in from 1 July 2017 over four financial years in the retail and pharmacy sectors, and over three financial years in the hospitality and fast food sectors.

Public holiday rate reductions will take effect on 1 July 2017 immediately – in each of the four sectors mentioned above as well as in the restaurant sector.

The decision to have no phase in period for the public holiday cuts was made on the basis that the number and timing of public holidays mostly occur in the first half of the year. The FWC also considered the aggregate effect of the impact of the cuts to public holiday penalties to be less than the impact of the reductions in Sunday penalty rates.  

The phased in reductions to Sunday penalty rates for the relevant industry sectors are set out below:


Retail Award 2010

Full time and part time employees

1 July 2017               200 per cent →195 per cent

1 July 2018               195 per cent→180 per cent

1 July 2019               180 per cent→165 per cent

1 July 2020               165 per cent →150 per cent

Casual employees (inclusive of casual loading)

1 July 2017               200 per cent→195 per cent

1 July 2018               195 per cent→185 per cent

1 July 2019               185 per cent→175 per cent


Pharmacy Award 2010

Full time and part time employees

1 July 2017               200 per cent→195 per cent

1 July 2018               195 per cent→180 per cent

1 July 2019               180 per cent→165 per cent

1 July 2020               165 per cent→150 per cent

Casual employees (inclusive of casual loading)      

1 July 2017               225 per cent→220 per cent

1 July 2018               220 per cent→205 per cent

1 July 2019               205 per cent→190 per cent

1 July 2020               190 per cent→175 per cent


Hospitality Award 2010

Full time and part time employees

1 July 2017               175 per cent→170 per cent

1 July 2018               170 per cent→160 per cent

1 July 2019               160 per cent→150 per cent


Fast Food Award 2010

Full time and part time employees

1 July 2017               150 per cent→145 per cent

1 July 2018               145 per cent→135 per cent

1 July 2019               135 per cent→125 per cent

Casual employees (inclusive of causal loading)

1 July 2017               175 per cent→170 per cent

1 July 2018               170 per cent→160 per cent

1 July 2019               160 per cent→150 per cent


The public holiday penalty rate cuts will be reduced as follows:

Retail, Pharmacy, Hospitality and Fast Food Awards 2010

Full time and part time employees

1 July 2017               250 per cent →225 per cent

Casual employees

1 July 2017               275 per cent →250 per cent


Restaurant Award 2010

Full time and part time employees

1 July 2017               250 per cent→225 per cent

Casual employees

1 July 2017               to remain at 250 per cent


Litigation is ongoing, with the SDA and United Voice having flagged an appeal to the penalty rates decision generally, to be heard in the Federal Court.

Assuming that the most recent decision of the FWC takes effect on 1 July 2017, its precise impact will vary in individual workplaces dependent upon the specific industrial arrangements in place.  Some employers will have the choice to implement the reductions immediately as per the phase-in timetable.  Others may be bound by superior arrangements provided for in applicable employment contracts or enterprise agreements.

For further information or assistance, please contact HopgoodGanim Lawyer’s Industrial and Employment Law team.


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