Penalty rate cuts: Who gains, and who will be hit the hardest

12/12/2018 Posted by admin

The changes do not extend to restaurants and cafes as industry representatives did not provide enough evidence to convince the workplace umpire of their case. Photo: Jessica ShapiroRELATED: Fair Work slashes penalty rates

Who will gain the most from the changes, and who will be the hardest hit? The penalty rates decision in a nutshell.Why were penalty rates reviewed?Hospitality and retail sectors made applications to vary penalty rate provisions aspart of the Fair Work Commission’sfour-yearly review ofawards.

Which awards were reviewed?Fast food, retail, hospitality, pharmacy, clubs and restaurants.

What did the Fair Work Commission base its decision on?

The full bench spent 39 days hearingevidence from 143 witnesses. It also received 5900 submissions.

Which weekend penalty rates have changed?Saturday rates in the fast food, hospitality, restaurant and retail sectors will not change and were found to be fair. Sunday rates for retail, fast food and some hospitality industries will be reduced by 25 to 50 per cent. The Fair Work Commission said Sunday rates should generally be more than Saturday rates, but not as high as they were in the past.

Who will gain the mostfrom thechanges?Business groups have welcomed the cuts saying they will help keep businesses open on Sundays and help employ more staff.Big retailers including JB Hi-Fi and Myer will be among those to benefit most from the changes.

The Federal Government will be under less pressure from industry groups to intervene.

Unions, the ALP and Greens, on the other hand, will now push for cuts to penalty rates to be overruled by legislation.

Who will be hardest hit by changes to Sunday penalty rates?Retail workers will take the biggest hit, whilecasual workers in hospitality will keep their existing penalty rates.

Retail workers (full-time and part-time) will see their Sunday penalty rates cut from 200 per cent (double time) to 150 per cent (time and a half). The rates for casuals will fall from 200 per cent to 175 per cent.

Fast food outlets will cutSunday penalty rates cut from 150 per cent to 125 per cent for full-time and part-time workers.

Hospitality workers will see their Sunday penalty rates reduced from 175 per cent to 150 per cent, but there will be no change in rates for casuals.

Sunday penalty rates for workers in restaurants and licensedclubs will not change.

Workers in pharmacies will see their Sunday penalty rates cutbetween the hours of 7am to 9pm from 200 per cent to 150 per cent. Rates for casual employees will fall from 200 per cent to 175 per cent.

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