Penalty rate changes from 1 July 2017

Penalty rate changes from 1 July 2017

In February, the Fair Work Commission (FWC) agreed to cut Sunday penalty rates and Public Holiday rates affecting retail, fast food, hospitality and pharmacy workers.

After reviewing submissions from various industry groups and unions, it has been decided that Sunday penalty rates will be transitioned in over 3-4 years with changes starting from 1 July 2017.

There will be no transition period for Public Holiday or Late Night penalty rates however, and the full changes for these will take effect from 1 July 2017.

 


Who is affected?

Employees working under the following awards will be affected:

  • Hospitality Industry (General) Award 2010 – MA000009
  • Registered and Licensed Clubs Award 2010 – MA000058
  • Restaurant Industry Award 2010 – MA000119
  • Fast Food Industry Award 2010 – MA000003
  • General Retail Industry Award 2010 – MA000004
  • Pharmacy Industry Award 2010 – MA000012

How are the rates changing?

Award

Date of change

Sunday Penalty Rate

Hospitality Award
Full-time and part-time:
.
.
(no change for casuals)
.
1 July 2017
1 July 2018
1 July 2019
.
175 per cent –> 170 per cent
170 per cent –> 160 per cent
160 per cent –> 150 per cent
Fast Food Award
(Level 1 employees only)
Full-time and part-time:
.
.
.
Casuals:
.
.
1 July 2017
1 July 2018
1 July 2019
.
1 July 2017
1 July 2018
1 July 2019
.
.
150 per cent –> 145 per cent
145 per cent –> 135 per cent
135 per cent –> 125 per cent
.
175 per cent –> 170 per cent
170 per cent –> 160 per cent
160 per cent –> 150 per cent
Retail Award
Full-time and part-time:
.
.
.
.
Casuals:
.
1 July 2017
1 July 2018
1 July 2019
1 July 2020
.
1 July 2017
1 July 2018
1 July 2019
.
200 per cent –> 195 per cent
195 per cent –> 180 per cent
180 per cent –> 165 per cent
165 per cent –> 150 per cent
.
200 per cent –> 195 per cent
195 per cent –> 185 per cent
185 per cent –> 175 per cent
Pharmacy Award
(7.00 am – 9.00 pm only)
Full-time and part-time:
.
.
.
.
Casuals:
.
.
1 July 2017
1 July 2018
1 July 2019
1 July 2020
.
1 July 2017
1 July 2018
1 July 2019
1 July 2020
.
.
200 per cent –> 195 per cent
195 per cent –> 180 per cent
180 per cent –> 165 per cent
165 per cent –> 150 per cent
.
225 per cent –> 220 per cent
220 per cent –> 205 per cent
205 per cent –> 190 per cent
190 per cent –> 175 per cent

 

Award

Public Holiday Penalty Rate

(all changes effective from 1 July 2017)

Hospitality Award
Full-time and part-time:
Casuals:
.
250 per cent –> 225 per cent
275 per cent –>  250 per cent
Fast Food Award
Full-time and part-time:
Casuals:
.
250 per cent –> 225 per cent
275 per cent –>  250 per cent
Retail Award
Full-time and part-time:
Casuals:
.
250 per cent –> 225 per cent
275/250 per cent –>  250 per cent
Pharmacy Award
Full-time and part-time:
Casuals:
.
250 per cent –> 225 per cent
275 per cent –>  250 per cent
Restaurant Award
Full-time and part-time:
(no change for casuals) 
.
250 per cent –> 225 per cent

 

Award

Late Penalty Rate

(all changes effective from 1 July 2017)

Restaurant Award
Late night penalty:
.
15 per cent between midnight and 7.00 am –>  15 per cent between midnight and 6.00 am
Fast Food Award
Late night penalty:
.
10 per cent between 9.00 pm and midnight–> 10 per cent between 10.00 pm and midnight

What do you need to do next?

  • Determine if the above awards apply to any of your employees.
  • Review the setup of your current Sunday, Public Holiday and Late penalty rates and ensure they are updated in your payroll system if you will be applying the reduction.
  • If your payroll is processed by PaysOnline, simply notify us prior to 1 July 2017 and we’ll update for you.
  • NOTE: you can choose to continue paying your employees the higher rates if you wish. 

To keep up-to-date as changes happen be sure to follow PaysOnline on Facebook, Twitter or LinkedIn as well.