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 and 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

PenaltyDate of Reduction

Details of Reduction

Sunday (FT/PT) Level 11 July 2017150% to 145%
1 July 2018145% to 135%
1 July 2019135% to 125%
Sunday (Casual) Level 11 July 2017175% to 170%
1 July 2018170% to 160%
1 July 2019160% to 150%
Public Holiday (FT/PT)1 July 2017250% to 225%
Public Holiday (Casual)1 July 2017275% to 250%

Hospitality Industry (General) Award

PenaltyDate of ReductionDetails of Reduction
Sunday (FT/PT)1 July 2017175% to 170%
1 July 2018170% to 160%
1 July 2019160% to 150%
Public Holiday (FT/PT)1 July 2017250% to 225%
Public Holiday (Casual)1 July 2017275% to 250%

General Retail Industry Award

PenaltyDate of ReductionDetails of Reduction
Sunday (FT/PT)1 July 2017200% to 195%
1 July 2018195% to 180%
1 July 2019180% to 165%
1 July 2020160% to 150%
Sunday (Casual)1 July 2017200% to 195%
1 July 2018195% to 185%
1 July 2019185% to 175%
Public Holiday (FT/PT)1 July 2017250% to 225%
Public Holiday (Casual)1 July 2017275% to 250%

Restaurant Industry Award

PenaltyDate of

Reduction

Details of Reduction
Public Holiday (FT/PT)1 July 2017250% to 225%

Pharmacy Industry Award

PenaltyDate of ReductionDetails of Reduction
Sunday (FT/PT)1 July 2017200% to 195%
1 July 2018195% to 180%
1 July 2019180% to 165%
1 July 2020160% to 150%
Sunday (Casual)1 July 2017225% to 220%
1 July 2018220% to 205%
1 July 2019205% to 190%
1 July 2020190% to 175%
Public Holiday (FT/PT)1 July 2017250% to 225%
Public Holiday (Casual)1 July 2017275% 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, 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 Consultant, will explain both FWC decisions.
  2. Contact us to speak about how our payroll solutions 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.

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