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Penalty Rates Update – Public Holiday And Late Night/Early Morning Penalties To Change On 1 July 2017

Published April 03, 2017 (last updated June 24, 2020) -
Clock Image Penalty Rates Update

Please note that the information provided below is relevant as of 03/04/17. To receive news on the latest legislative changes, sign up for our Free Monthly Newsletter.

If your business has employees covered by the Fast Food Industry Award 2010 (Fast Food Award) or the Restaurant Industry Award 2010 (Restaurant Award), there is a change coming to the span of hours on which the late night/early morning penalty rates are payable.

This amendment varies the span of hours that attract the 15% loading in both Awards to cover work performed between midnight and 6.00am (not 7.00am). The Fast Food Award is also being varied so the 10% evening work loading applies to work between 10.00pm and midnight (previously the span of hours was 9.00pm to midnight).

The important note for employers is that the Fair Work Commission (FWC) has changed the date this change is to come into effect from this month to 1 July 2017, meaning it will coincide with the reduction of public holiday penalty rates under the following Awards:

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

Black Coal Mining Industry Award 2010

An amendment to the industry-specific redundancy scheme in the Black Coal Mining Industry Award 2010 has recently been published by the FWC.

The change introduces a cap on retrenchment payments made under this industry-specific redundancy scheme, based on complete years of employment. The varied clause now provides that employees that are terminated by being made redundant are entitled to retrenchment pay equal to two weeks’ pay for each completed year of employment up to a maximum of 30 weeks’ pay (15 years of employment).

In order to protect employees who have already completed more than 15 years of employment, the clause also specifies that anyone with more than 15 years of service as at 20 March 2017 are still entitled to the previously uncapped redundancy payment rules. The severance payment of one week per year remains.

Employers in this space are reminded to check their redundancy liability and make sure any employees that become entitled to such a payment are done so under the correct terms.

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