The Fair Work Commission yesterday gave its decision on the long running Sunday penalty rates case. The FWC decision was that Sunday penalty rate will be reduced from 100% to 50% for permanent employees and from 100% to 75% for casuals under the General Retail Industry Award. MGA has welcomed this decision as it will help our members to employ more staff, increase productivity and make them more sustainable. We are aware of the enormous backlash against the decision and we anticipate it will be appealed. However, the FWC did say that high penalty rates were contrary to the objectives of the Fair Work Act and MGA believes that this should strongly help to maintain the decision.
WHEN WILL THE PROPOSED SUNDAY PENALTY RATES BECOME EFFECTIVE?
Keeping in mind the likelihood of an appeal which could delay any implementation, the FWC has said that the Sunday Penalty rates in the General Retail Industry Award will be “phased in”. It is likely that penalty reductions will be introduced in two stages over the next two years. The FWC will hear from the interested parties as to their preferences for the introduction of the new rates. MGA will keep members informed of when the new rates will apply in the award.
CURRENT AGREEMENTS - NO EFFECTS NOW, BUT WHAT ABOUT THE FUTURE?
If you have an enterprise agreement in your store you will not be affected by the reduction in the award Penalty rates decision immediately. The newly proposed rates will only be relevant when, or if, you are entering into a new agreement in the future. A reduced Sunday penalty rate will be a valuable tool in any re-negotiation process.
Please call MGA with any queries.
Free call 1800 888 479