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New penalty rates already in place – be ready for 1 July kick off.

Penalty RatesJuly 3, 2017

New penalty rates already in place – be ready for 1 July kick off. (Last Updated On: August 23, 2017)

As announced by the Fair Work Commission (FWC) the penalty rates for some full-time and part-time employees that work on Sundays and public holidays will be reduced, the rollout commencing this month. The reduction will only impact workers across the hospitality, retail and pharmacy industries. Some casual workers will also feel the change.

What this means for each industry will be outlined in the changes to the five Modern Awards that are covered:

  • Fast Food Industry Award 2010
  • General Retail Industry Award 2010
  • Hospitality Industry (General) Award 2010
  • Pharmacy Industry Award 2010
  • Restaurant Industry Award 2010

In making its decision, the FWC said that the evidence before it supported the view that a reduction in penalty rates would lead to increased services and trading hours on public holidays and Sundays. Public holiday penalty changes will be fully implemented immediately, with Sunday rate changes to be brought into full effect gradually over the next three years.

Employers should also note that as of 1 July there is a new minimum wage. The new minimum wage is $18.29 an hour and is in place the first full pay period after 1 July 2017. Even if employees are covered by an enterprise agreement, there may be a need to adjust the rates of pay following the increase in minimum wage.

For advice when implementing penalty rate changes, or adjusting to the new minimum wage, contact the Employsure Advice line on 1300 651 415.

Click the image below to find out more about the changes.


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