In February the Fair Work Commission announced its decision to reduce Sunday penalty rates in the Hospitality, Fast Food, Retail and Pharmacy awards.
At 2pm today the Commission handed down its decision on how these changes will be implemented.
Fast Food Industry Award 2010
Only Level 1 employees are affected by the Sunday penalty rates changes. The Sunday penalty rates for Level 1 employees for the next three years will be as follows:
| Full-time and part-time employee – Level 1 only | |
| 1 July 2017 | 145% |
| 1 July 2018 | 135% |
| 1 July 2019 | 125% |
| Casual employees (inclusive of casual loading) – Level 1 only | |
| 1 July 2017 | 170% |
| 1 July 2018 | 160% |
| 1 July 2019 | 150% |
Fast food employees employed as Level 2 or Level 3 employees under the Award will not be affected by any change in rates.
Hospitality Industry (General) Award 2010
In relation to the Hospitality Award 2010, the Commission determined to implement transitional provisions only for full-time and part- time employees. The Sunday penalty rates for the next three years will be as follows:
| Full-time and part-time employees | |
| 1 July 2017 | 170% |
| 1 July 2018 | 160% |
| 1 July 2019 | 150% |
Casual employees under the Hospitality Industry (General) Award 2010 will not be affected by any change in rates.
General Retail Industry Award 2010
In relation to the General Retail Industry Award 2010, the Commission determined that a four-year transitional period for full-time and part-time employees was appropriate, and a three-year transitional period for casual employees. The Sunday penalty rates for the next three-four years will be as follows:
| Full-time and part-time employees | |
| 1 July 2017 | 195% |
| 1 July 2018 | 180% |
| 1 July 2019 | 165% |
| 1 July 2020 | 150% |
| Casual employees (inclusive of casual loading) | |
| 1 July 2017 | 195% |
| 1 July 2018 | 185% |
| 1 July 2019 | 175% |
Pharmacy Award 2010
In relation to the Pharmacy Award 2010, the Commission determined that a four-year transition period for all employees was appropriate. The Sunday penalty rates for the next four years will be as follows:
| Full-time and part- time employees | |
| 1 July 2017 | 195% |
| 1 July 2018 | 180% |
| 1 July 2019 | 165% |
| 1 July 2020 | 150% |
| Casual employees (inclusive of casual loading) | |
| 1 July 2017 | 220% |
| 1 July 2018 | 205% |
| 1 July 2019 | 190% |
| 1 July 2010 | 175% |
The Penalty Rates Decision in February expressed these changes to apply between the hours of 7:00AM and 9:00PM only; the transitional decision makes no such reference. Further clarity will come when the draft determinations are issued by the Commission.
Public holidays
The Commission determined that its cuts to the public holiday penalty rates will take full effect on 1 July 2017.
As such the new public holiday penalty rates will be as follows:
| Public holiday penalty rates (%) | ||
| Award title | Full-time and part-time | Casual |
| Hospitality Industry (General) Award 2010 | 225% | 250% |
| Restaurant Industry Award 2010 | 225% | 250% |
| General Retail Industry Award | 225% | 250% |
| Fast Food Industry Award 2010 | 225% | 250% |
| Pharmacy Industry Award 2010 | 225% | 250% |
Further information
The Commission will publish draft variations to the Awards soon. Interested parties will have seven days to comment on the draft determinations before these are finalised. The NRA will keep all members up to date with developments as they happen.