Good news for retailers and restaurant owners: The Fair Work Commission has decided that the Sunday penalty rates will be reduced
The Fair Work Commission has announced that SUNDAY penalty rates will be cut from the existing levels for employees in the hospitality, retail and fast food this morning in Melbourne. Saturday rates won’t be changed, with the commission finding they provide an adequate safety net, but public holiday rates will be reduced in the hospitality industry.
Full-time and part-time workers in retail will have their Sunday penalty rates dropped from 200% to 150% of their standard hourly rate, while casuals will go from 200% to 175%.
Hospitality employees will face a reduction in Sunday pay from 175% to 150%, while causal hospitality workers’ pay will remain unchanged.
Fast-food employees’ Sunday rates will go from 150% to 125% for full-time and part-time staff, and casuals will go from 200% to 175%.
The pay cuts take effect from 1 July 2017.
This decision will affect the small to medium enterprises positively, which are the engine room of the economy. Many of them have had to simply abandon Sunday trading altogether because they couldn’t find a way to make it viable when paying double time. Changes to Sunday rates could cost staff working a six-hour shift up to $66. The double-time rate under the general retail award is $44 an hour. The reduction will allow them to trade in the future.
However, the decision that announced by the Fair Work Commission today will greatly affect the thousands of employees who rely on working weekends negatively, they are facing the possibility of a double-digit pay cut.
Penalty rates cut: Fair Work Commission cuts Sunday penalty rates
Penalty rates for Sunday, holiday work to be slashed after landmark decision by Fair Work Commission