Reductions to Sunday penalty rates will be transitioned in over three or four years, and public holiday rate changes will be operational as of 1 July 2017, as held by the Commission in a decision handed down on 5 June 2017.  Modern Awards affected by the decision are in fast food, retail, hospitality, restaurant and pharmacy industries.

The details on how the Sunday penalty rate reductions would be implemented have been long awaited, after the Commission’s Expert Panel signalled the changes earlier this year.

The Sunday penalty rate cuts will start on 1 July 2017, and will be gradually phased in ending on 1 July 2019 for the Fast Food and Hospitality Awards and 1 July 2020 for the Retail and Pharmacy Awards.

Fast Food Industry Award

Penalty Date of Reduction

Details of Reduction

Sunday (FT/PT) Level 1 1 July 2017 150% to 145%
1 July 2018 145% to 135%
1 July 2019 135% to 125%
Sunday (Casual) Level 1 1 July 2017 175% to 170%
1 July 2018 170% to 160%
1 July 2019 160% to 150%
Public Holiday (FT/PT) 1 July 2017 250% to 225%
Public Holiday (Casual) 1 July 2017 275% to 250%

Hospitality Industry (General) Award

Penalty Date of Reduction Details of Reduction
Sunday (FT/PT) 1 July 2017 175% to 170%
1 July 2018 170% to 160%
1 July 2019 160% to 150%
Public Holiday (FT/PT) 1 July 2017 250% to 225%
Public Holiday (Casual) 1 July 2017 275% to 250%

General Retail Industry Award

Penalty Date of Reduction Details of Reduction
Sunday (FT/PT) 1 July 2017 200% to 195%
1 July 2018 195% to 180%
1 July 2019 180% to 165%
1 July 2020 160% to 150%
Sunday (Casual) 1 July 2017 200% to 195%
1 July 2018 195% to 185%
1 July 2019 185% to 175%
Public Holiday (FT/PT) 1 July 2017 250% to 225%
Public Holiday (Casual) 1 July 2017 275% to 250%

Restaurant Industry Award

Penalty Date of

Reduction

Details of Reduction
Public Holiday (FT/PT) 1 July 2017 250% to 225%

Pharmacy Industry Award

Penalty Date of Reduction Details of Reduction
Sunday (FT/PT) 1 July 2017 200% to 195%
1 July 2018 195% to 180%
1 July 2019 180% to 165%
1 July 2020 160% to 150%
Sunday (Casual) 1 July 2017 225% to 220%
1 July 2018 220% to 205%
1 July 2019 205% to 190%
1 July 2020 190% to 175%
Public Holiday (FT/PT) 1 July 2017 250% to 225%
Public Holiday (Casual) 1 July 2017 275% to 250%

To understand how these reductions to penalty rates interact with the Commission’s Annual Wage Increase Decision, effective 1 July 2017 please see our article here. Whether you pay your staff under an enterprise agreement, Modern Award or the national minimum wage, we’ve got you covered.

Consider the following options:

  1. Join our webinar on Wednesday 21st June at 11am where Sophie Garland, Senior Workplace Lawyer, will explain both FWC decisions.
  2. Contact us to speak about how our managed payroll solution with in-built Award Interpretation will ensure that you’re always compliant, no matter what the change is.
  3. Request our 2017 wage update service here, particularly if you have an enterprise agreement.
  4. Speak to a member of our legal team on 1300 144 120 now

If you are unsure of how this decision may affect your business – or simply would like some advice, you can speak to one of our workplace experts.