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What do the penalty rate cuts mean for you?

May 24, 2017 2 minute read
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Daniel Wessels Avatar

Authoritative Source

Daniel Wessels

What do the penalty rate cuts mean for you?

Penalty rate cuts? The Fairwork Commission has decided to cut penalty rates on Sunday’s and Public holiday’s for full time and part time employees in:

  • Hospitality
  • Restaurants
  • Fast Food
  • Retail
  • Pharmacy

What is actually changing?

Full time and part time Hospitality workers will have their Sunday rates slashed from 175% to 150%.

While Retail full-time and part-time workers will have their Sunday rates reduced from 200% to 150%

Penalty rates for casual workers will remain the same.

Which poses the question if Employers are paying less for their staff on Sunday’s and Public Holiday’s will the Surcharges charged to customers on these day’s be waived? It seems unlikely!

How will it affect me?

How the new rate cuts will affect you will depend on whether you are full-time, part-time or casual.

Good news if you are casual!

These changes do not affect you, casual Sunday rates will remain the same at 175%.

 If you are a full-time or part-time employee your rate will be slashed from 175% on a Sunday to 150%.

 The argument for doing this is that the reduction in penalty rates would lead to longer trading hours, increased services and an increase in overall hours worked because it wouldn’t cost employer’s as much to be open and trading on a Sunday.

Many have commented that the decision to cut penalty rates was about protecting employers and not employee’s, who seem to have gotten the raw end of the stick in this situation.

When does the new penalty rates come into effect?

The new penalty rate changes will come into effect on the 1st July 2017.

Changes to the start and finish times for early or late shift workers in the restaurant and fast food industry’s will begin in March 2017.

What if I question my employer about my rates, can he cut my hours or stop rostering me on?

Absolutely not! It is a breach of the Fair Work Act for an employer to sack you or stop rostering you on because you raised concerns about your wages.

 The Fair Work Commission has made it very clear that it sets the rates independently of the government and the BCA (Business Council Australia) has supported the decision

“it is essential that penalty rates continue to be set independently by the commission, free of political interference.”

 Unfortunately, I think this has left many workers feeling disenchanted and angry. As those in privileged positions whom wouldn’t have a quam about missing out on $80 a week are making decisions based on their own circumstances and the well being of the business and not that of the people working in them.

penalty rate cuts

Daniel Wessels Avatar

Authoritative Source: Daniel Wessels

Young entrepreneur Daniel Wessels is the CEO and Founder of Jacaranda Finance. Although only in his early thirties, Wessels’ determination and adaptability has led him to successfully pioneer a range of other enterprises both here and abroad.

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