The Fair Work Commission (FWC) has recently handed down 2 significant decisions, namely the Annual Wage Review decision and the rollout of the decision to reduce Sunday and Public Holiday penalty rates in select awards. These decisions will have implications for employers from 1 July 2017.
Annual Wage Review
In yesterday's shock decision, the FWC has ordered that minimum award rates be increased by 3.3% from 1 July 2017.
The context of this decision was that the Australian Council of Trade Unions was calling for a 6.7% increase while employer groups such as the Australian Chamber of Commerce and Industry and the Australian Industry Group proposed modest increases of 1.2% and 1.5% respectively.
Penalty Rates Decision – Transitional Arrangements
Earlier this week, the FWC handed down a decision regarding the transition timetable for the penalty rate cuts to the following modern awards:
General Retail Industry Award 2010;
Hospitality Industry (General) Award 2010;
Restaurant Industry Award 2010;
Fast Food Industry Award 2010; and
Pharmacy Industry Award 2010.
Public Holiday Penalty Rates
In relation to the Public Holiday penalty rates, the FWC confirmed its decision that the reduced Public Holiday penalty rate provisions in the Retail, Hospitality, Restaurant, Fast Food and Pharmacy Awards will take effect on 1 July 2017, without any transitional arrangements.
A summary of the current and amended Public Holiday rates is below:
|
Award |
Current Public Holiday Rates |
New Public Holiday Rates to take effect from 1 July 2017 |
|
General Retail Industry Award 2010
|
250% (FT/PT) 275% (Casual*) |
225% (FT/PT) 250% (Casual*) |
|
Hospitality Industry (General) Award 2010
|
250% (FT/PT) 275% (Casual*) |
225% (FT/PT) 250% (Casual*) |
|
Restaurant Industry Award 2010 |
250% (FT/PT) 250% (Casual*) |
225% (FT/PT) 250% (Casual*) |
|
Fast Food Industry Award 2010
|
250% (FT/PT) 275% (Casual*) |
225% (FT/PT) 250% (Casual*) |
|
Pharmacy Industry Award 2010
|
250% (FT/PT) 275% (Casual*) |
225% (FT/PT) 250% (Casual*) |
Sunday Penalty Rates
In relation to the Sunday penalty rates, the FWC decided that reductions to Sunday penalties in the Retail, Fast Food, Hospitality and Pharmacy Awards will be phased in from 1 July each year over the next 3-4 years.
A summary of the transitional arrangements for each of these awards is set out below:
|
Award |
Date |
Full-time and part-time employees |
Casual employees (inclusive of casual loading) |
|
Hospitality Industry (General) Award 2010
|
1 July 2017 |
175% to 170% |
No change |
|
1 July 2018 |
170% to 160% |
No change |
|
|
1 July 2019 |
160% to 150% |
No change |
|
|
Fast Food Industry Award 2010
|
1 July 2017 |
150% to 145%* |
175% to 170%* |
|
1 July 2018 |
145% to 135%* |
170% to 160%* |
|
|
1 July 2019 |
135% to 125%* |
160% to 150%* |
|
|
General Retail Industry Award 2010
|
1 July 2017 |
200% to 195% |
200% to 195% |
|
1 July 2018 |
195% to 180% |
195% to 185% |
|
|
1 July 2019 |
180% to 165% |
185% to 175% |
|
|
1 July 2020 |
165% to 150% |
No change |
|
|
Pharmacy Industry Award 2010
|
1 July 2017 |
200% to 195% |
225% to 220% |
|
1 July 2018 |
195% to 180% |
220% to 205% |
|
|
1 July 2019 |
180% to 165% |
205% to 190% |
|
|
1 July 2020 |
165% to 150% |
190% to 175% |
If you have any questions or would like further information regarding the above decisions, please contact:
Louise Houlihan
Principal
T: 03 9611 0144
M: 0409 835 809
E: lhoulihan@sladen.com.au