As indicated in our article yesterday, the Fair Work Commission (FWC) has handed down its long-awaited decision on penalty rates applying on weekends, public holidays and late nights.

The penalty rate amendment affects the following Awards:

•    Hospitality Industry (General) Award 2010
•    Registered and Licensed Clubs Award 2010
•    Restaurant Industry Award 2010
•    Fast Food Industry Award 2010
•    General Retail Industry Award 2010
•    Pharmacy Industry Award 2010

In brief, the FWC has ordered changes to Sunday rates under the Hospitality, Fast Food, Retail and Pharmacy Awards and changes to public holiday rates under the Hospitality, Restaurant, Retail, Fast Food and Pharmacy Awards. Some changes were also made to early and late night loadings under the Restaurant and Fast Food Awards.

There has been a modest change to Sunday and public holiday rates, as can be seen in a summary of the current and amended Sunday and public holiday rates below:

Award

Current Sunday Rates

New Sunday Rates

Current Public Holiday Rates

New Public Holiday Rates

Hospitality Industry (General) Award 2010

175% (FT/PT)

175% (Casual*)

150% (FT/PT)

175% (Casual*)

250% (FT/PT)

275% (Casual*)

225% (FT/PT)

250% (Casual*)

Registered and Licensed Clubs Award 2010

175% (FT/PT)

175% (Casual*)

250% (FT/PT)

250% (Casual*)

Restaurant Industry Award 2010

150% (FT/PT)

150% (Casual*)

250% (FT/PT)

250% (Casual*)

225% (FT/PT)

250% (Casual*)

Fast Food Industry Award 2010

150% (FT/PT)

175% (Casual*)

Level 1 only:

125% (FT/PT)

150% (Casual*)

250% (FT/PT)

275% (Casual*)

225% (FT/PT)

250% (Casual*)

General Retail Industry Award 2010

200% (FT/PT)

200% (Casual*)

150% (FT/PT)

175% (Casual*)

250% (FT/PT)

275% (Casual*)

225% (FT/PT)

250% (Casual*)

Pharmacy Industry Award 2010

200% (FT/PT)

225% (Casual*)

7am – 9pm:

150% (FT/PT)

175% (Casual*)

250% (FT/PT)

275% (Casual*)

225% (FT/PT)

250% (Casual*)

*Inclusive of any casual loading

The FWC is seeking submissions in relation to when these changes are to be implemented. The Productivity Commission has suggested 12 months, but the FWC has indicated it is considering swifter action and phasing the decrease in penalty rates in instalments.

If you have any questions or would like further information, please contact:

Jim Rutherford
Principal
T 03 5226 8579
E jrutherford@ha.legal

Sonia McCabe
Senior Associate
T 03 5226 8558
E smccabe@ha.legal

Jenni Walker
Lawyer
T 03 5226 8577
E jwalker@ha.legal