IndustryNews In Brief

Are your penalty rates about to be cut?

The Fair Work Commission has just announced its decision to reduce weekend penalty rates. Have your say now: should Sunday rates be the same as Saturday’s? What would be the impact on your business?

Prior to this announcement, the Turnbull government suggested it would honour whatever decision was made while the labour opposition remained skeptical about the timing of the decision.

Broadly, the decision recommends that part-time and full-time hospitality workers receive a 25 percent (of standard wage) cut to their Sunday pay rate. It is yet unclear how many workers will be affected across the hospitality sector and the accommodation industry more widely. So far, it looks like fast food workers classed as ‘level one’ will be hit hardest, with their Sunday pay rate set to drop down on par with their Saturday pay rate.

This proposed Sunday penalty cut that was set before the FWC was one of many similar recommendations made in 2015 by the Productivity Commission, the subject of much debate within the hospitality industry.

Some believe rates are harming competition and killing business while others believe penalty rates are a hallmark for workers. What do you think about this decision?

accomnews will keep you posted with any industry-relevant updates.

Should Sunday penalty rates be cut back?

27 Vote
13 Vote

Rosie Clarke

Rosie Clarke is managing editor at Multimedia Publishing.

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  1. Of course we have to take earnings from Australia’s lowest paid employees…because cleaners, F&B attendants and others on these pay scales are just so overpaid living the good life. Excuse my sarcasm.
    It is much easier than reducing the tax burdens on small businesses and actually making the rich pay the share of tax.

  2. According to ABC News by Jessica Haynes 23 Feb 2017 at 12:04 AEST, in Hospitality, there is NO change to Sunday penalty rates for casuals – it remains at 175. So no change for us regional motels, where most housemaid employees are casuals. Looks like those organisations trying to be the voice of the hospitality industry failed to influence the Fair Work Commission in this regard. Therefore no change in the cost of cleaning a room on any Sunday in most regional motels.

    However, in Hospitality, the penalty rate for full-time and part-time employees (not casuals) will be cut from 175 to 150. If the sums work out, the casual on 175 misses out on work in favour of the more affordable full or part-time employee on 150. So as Rusty says, some are going to lose earnings.

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