Penalty rates reduction for hospitality businesses

The Fair Work Commission finally handed down its decision on penalty rates as part of the four yearly review into modern awards. There’s been a reduction in some penalty rates on Sundays and all penalty rates on public holidays, with no change to any Saturday rates.

Let’s get straight to the point

All reductions (those in bold) are a 25 percentage point drop.

• Restaurant Industry Award
  • Full time and part time employees
    • Sunday penalty rate: 150%
    • Public holiday penalty rate: 225%
  • Casual employees
    • Sunday penalty rate: 150%
    • Public holiday penalty rate: 250%

• Hospitality Industry (General) Award
  • Full time and part time employees
    • Sunday penalty rate: 150%
    • Public holiday penalty rate: 225%
  • Casual employees
    • Sunday penalty rate: 150%
    • Public holiday penalty rate: 250%

• Fast Food Industry Award
  • Applies to Level 1 employees only. That excludes managers and supervisors (more here)
  • Full time and part time employees
    • Sunday penalty rate: 125%
    • Public holiday penalty rate: 225%
  • Casual employees
    • Sunday penalty rate: 150%
    • Public holiday penalty rate: 250%

When?

Sunday penalty rates: TBC, but partial reduction from 1 July 2017.

Public holiday penalty rates: on 1 July 2017

Fair Work Commission’s decision

Read summary of the decision (15 pages) or the full decision, 4 yearly review of modern awards – Penalty Rates (AM2014/305) [2017] FWCFB 1001 (551 pages)