Penalty Rate Changes 2017

On 5 June 2017, the Fair Work Commission (FWC) handed down a decision about how the changes to Sunday penalty rates will be introduced. The FWC decided they will be phased in over 3 or 4 years, depending on the award and employment type, starting from 1 July 2017.

Who do the changes affect?

The following awards are affected by the penalty rate changes:

  • ● General Retail Industry Award 2010 [MA000004] (the Retail Award)
  • ● Fast Food Industry Award 2010 [MA000003] (the Fast Food Award)
  • ● Restaurant Industry Award 2010 [MA000119] (the Restaurant Award)
  • ● Pharmacy Industry Award 2010 [MA000012] (the Pharmacy Award)
  • ● Hospitality Industry (General) Award 2010 [MA000009] (the Hospitality Award).

If you need help to determine if your employees are covered by one of these awards, subscribe to Workforce Guardian and ask our team of HR experts.

The FWC is still reviewing the Registered and Licensed Clubs Award 2010 (the Clubs Award) but haven't made any changes at this stage.

When do the changes start?

The changes to public holiday penalty rates start from 1 July 2017. These changes will apply in full.

The changes to the evening work and after midnight penalties (in the Restaurant and Fast Food Awards) also start from 1 July 2017.

The changes to Sunday penalty rates are being introduced over 3 or 4 years starting from 1 July 2017. The FWC handed down a decision about how this should happen on 5 June 2017 and will settle the final form of these changes soon.

The changes will be phased in over 3 years or 4 years, depending on the award and the employment type.

  • ● in the Fast Food Award, the changes will be phased in over 3 years for all employees
  • ● in the Retail Award, the changes will be phased in over 4 years for full-time and part-time employees and over 3 years for casual employees
  • ● in the Hospitality Award, the changes will be phased in over 3 years for full-time and part-time employees (there are no Sunday changes for casual employees)
  • ● in the Pharmacy Award, the changes will be phased in over 4 years for all employees.

There are no changes to Sunday rates in the Restaurant Award.

If you want to know more about how the rates will be phased in and the percentages that will apply over the periods, subscribe to Workforce Guardian and ask our team of HR experts.

What are the changes?

Retail Award

Sunday penalty rates will change from:

200% to 150% for full-time and part-time employees

200% to 175% for casuals.

Public holiday penalty rates will change from:

250% to 225% for full-time and part-time employees

275% to 250% for casuals.

Fast Food Award

Sunday penalty rates will change for Level 1 employees from:

150% to 125% for full-time and part-time employees

175% to 150% for casuals.

Public holiday penalty rates will change from:

250% to 225% for full-time and part-time employees

275% to 250% for casuals.

The 10% evening work penalty will apply from 10.00pm (instead of 9.00pm) until midnight. The 15% after midnight penalty will apply to hours worked between midnight and 6.00am.

Restaurant Award

The public holiday penalty rates for full-time and part-time employees will change from 250% to 225%. The casual public holiday penalty will remain as 250%.

The 15% after midnight penalty will apply to hours worked between midnight and 6.00am (instead of 7.00am).

Pharmacy Award

For work between 7.00am and 9.00pm, Sunday penalty rates will change from:

200% to 150% for full-time and part-time employees

225% to 175% for casuals.

Public holiday penalty rates will change from:

250% to 225% for full-time and part-time employees

275% to 250% for casuals.

Hospitality Award

Sunday penalty rates will change from 175% to 150% for full-time and part-time employees. The casual Sunday penalty will remain as 175%.

Public holiday penalty rates will change from:

250% to 225% for full-time and part-time employees

275% to 250% for casuals.

More information

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