Decision on penalty rate transition period handed down

In February the Fair Work Commission announced its decision to reduce Sunday penalty rates in the Hospitality, Fast Food, Retail and Pharmacy awards.

At 2pm today the Commission handed down its decision on how these changes will be implemented.

Fast Food Industry Award 2010

Only Level 1 employees are affected by the Sunday penalty rates changes. The Sunday penalty rates for Level 1 employees for the next three years will be as follows:

Full-time and part-time employee – Level 1 only
1 July 2017	145%
1 July 2018	135%
1 July 2019	125%
Casual employees (inclusive of casual loading) – Level 1 only
1 July 2017	170%
1 July 2018	160%
1 July 2019	150%

Fast food employees employed as Level 2 or Level 3 employees under the Award will not be affected by any change in rates.

Hospitality Industry (General) Award 2010

In relation to the Hospitality Award 2010, the Commission determined to implement transitional provisions only for full-time and part- time employees. The Sunday penalty rates for the next three years will be as follows:

Full-time and part-time employees
1 July 2017	170%
1 July 2018	160%
1 July 2019	150%

Casual employees under the Hospitality Industry (General) Award 2010 will not be affected by any change in rates.

General Retail Industry Award 2010

In relation to the General Retail Industry Award 2010, the Commission determined that a four-year transitional period for full-time and part-time employees was appropriate, and a three-year transitional period for casual employees. The Sunday penalty rates for the next three-four years will be as follows:

Full-time and part-time employees
1 July 2017	195%
1 July 2018	180%
1 July 2019	165%
1 July 2020	150%
Casual employees (inclusive of casual loading)
1 July 2017	195%
1 July 2018	185%
1 July 2019	175%

Pharmacy Award 2010

In relation to the Pharmacy Award 2010, the Commission determined that a four-year transition period for all employees was appropriate. The Sunday penalty rates for the next four years will be as follows:

Full-time and part- time employees
1 July 2017	195%
1 July 2018	180%
1 July 2019	165%
1 July 2020	150%
Casual employees (inclusive of casual loading)
1 July 2017	220%
1 July 2018	205%
1 July 2019	190%
1 July 2010	175%

The Penalty Rates Decision in February expressed these changes to apply between the hours of 7:00AM and 9:00PM only; the transitional decision makes no such reference. Further clarity will come when the draft determinations are issued by the Commission.

Public holidays

The Commission determined that its cuts to the public holiday penalty rates will take full effect on 1 July 2017.

As such the new public holiday penalty rates will be as follows:

	Public holiday penalty rates (%)
Award title	Full-time and part-time	Casual
Hospitality Industry (General) Award 2010	225%	250%
Restaurant Industry Award 2010	225%	250%
General Retail Industry Award	225%	250%
Fast Food Industry Award 2010	225%	250%
Pharmacy Industry Award 2010	225%	250%

Further information

The Commission will publish draft variations to the Awards soon. Interested parties will have seven days to comment on the draft determinations before these are finalised. The NRA will keep all members up to date with developments as they happen.