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Penalty rate challenge gets cut down

Penalty RatesOctober 30, 2017

Penalty rate challenge gets cut down (Last Updated On: October 30, 2017)

A union-led challenge to reverse the penalty rate cut has fallen flat in the Federal Court. The decision follows changes made on 1 July 2017 to reduce penalty rates to employees in the retail, fast-food, hospitality, restaurant, and pharmacy industries.

Over the three-day hearing, the Court heard arguments from the two Unions bringing the case, on how the Fair Work Commission did not consider the impact the rate cut would have on workers. In a win for employers, the Court disagreed and felt the Commission had made a fair decision on Sunday and public holiday rates for the five Awards.

What does this mean for employers?

This means there is no change to the new penalty rates announced in July that affect the following Awards:

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

It is back to business as usual for employers, but yet again the small business community has been shown how quickly workplace laws can change. Penalty rates continue to be one of the biggest issues faced by clients of Employsure.

As mentioned, there is nothing new for employers to do, but for any concerns on how penalty rates are managed in the workplace employers should call Employsure on 1300 651 415.

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