static image

FWC penalty rates phasing-in is cautious and fair

"Today's Fair Work Commission (FWC) decision on the transitional arrangements for the new Sunday and public holiday penalty rates in the fast food industry is cautious but fair," Innes Willox, Chief Executive of the Australian Industry Group said today.

"The Commission has rejected calls by the unions for the Penalty Rates Decision to be re-considered or set aside.

"While fast food businesses would have preferred the new Sunday penalty rates to be fully implemented by 1 July 2018, the FWC has decided to phase-in the new rates over two years from 1 July 2017.

"It is pleasing that the FWC has ruled out red-circling and take home pay orders which would have been a nightmare for businesses to implement. It is also pleasing that the new public holiday penalty rates will be immediately implemented from 1 July 2017.

"The following phasing-in arrangements will apply to the Sunday penalty rates in the Fast Food Industry Award:

Full-time and part-time employees – Level 1 only

  • 1 July 2017 150 per cent -> 145 per cent
  • 1 July 2018 145 per cent -> 135 per cent
  • 1 July 2019 135 per cent -> 125 per cent

Casual employees (inclusive of casual loading) – Level 1 only

  • 1 July 2017 175 per cent -> 170 per cent
  • 1 July 2018 170 per cent -> 160 per cent
  • 1 July 2019 160 per cent -> 150 per cent

"Now that all of the details of the Penalty Rates Decision have been determined by the FWC, everyone should focus on the positive benefits to employment and investment that will occur, rather than endeavouring to misrepresent the decision of the independent tribunal as unfair or unwarranted," Mr Willox said.

Media enquiries: Graham Turner – 0415 285 320