With the new financial year now started it is worth while checking to ensure your business is still compliant across the changes made to Sunday penalty rates across specific Awards. The third round of changes to penalty rates have now taken effect from the 1st July 2019, phasing in further reductions to Sunday penalty rates in the fast food, retail, hospitality and pharmacy industries. The changes were first proposed in March 2017 as part of the Modern Award review process and the details on how these changes would be phased in over the next 3 years was confirmed in June 2017.

Sunday penalty rate changes

Penalty rates for work performed on Sunday will reduce for casual and permanent employees under the following Awards:

  • Fast Food Industry Award (Level 1 employees only) (135% to 125% for permanent employees and 160% to 150% for casual employees);
  • General Retail Industry Award (Non-shift workers) (180% to 165% for permanent employees and 185% to 175% for casual employees); and
  • Pharmacy Industry Award (180% to 165% for permanent employees and 205% to 190% for casual employees).

Under the Hospitality Industry (General) Award, the Sunday rate for permanent employees will reduce from 160% to 150% with no changes to casual employees.

The Sunday penalty rate changes for all employees under the Fast Food Award 2010, for permanent employees under the Hospitality Industry (General) Award and for casual employees under the General Retail Industry Award 2010 are the last scheduled changes to penalty rates for those particular Awards as part of this review.

Need more help?

If you are unsure of how these changes will affect your business or how these reductions to penalty rates interact with the Fair Work Commission’s Annual Wage Increase Decision (also effective 1 July 2019) you can speak to one of our workplace consultants by using our contact us form or by phoning 1800 752 764.

If you are using one of EI’s payroll solutions with in-built Award interpretation, these changes will be automatically applied to your next pay run.

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