Fair Work Commission decision on Penalty Rates

The Fair Work Commission has just handed down its much anticipated decision in the Penalty Rate Case as part of the Four Yearly Review of Modern Awards.

The decision represents the culmination of more than two years of work by Australian Business Lawyers & Advisors (ABLA) representing the Australian Chamber, NSW Business Chamber and Australian Business Industrial.

The decision effectively:

1. reduce Sunday penalty rates in the retail industry from 200% to 150% (for permanent staff) and 175% (for casuals);
2. reduce Sunday penalty rates in the hospitality industry from 175% to 150% (for permanent staff only);
3. reduce Sunday penalty rates in the fast food industry from 150% to 125% (for permanent staff) and 175% to 150% (for casual staff);
4. reduce Sunday penalty rates in the Pharmacy Award from 200% to 150% (permanent staff) and  175% (casual staff); and
5. reduce a number of public holiday penalty rates from 250% to 225% across the hospitality, retail, restaurant and fast food and pharmacy industries.

In taking a lead role in the employer case, ABLA presented expert academic evidence concerning the value employees place on public holidays and weekends, provided direct survey evidence and conducted extensive cross-examination of expert and lay union witnesses.

The decision marks the resolution of an enormous industrial proceeding which ran for 39 hearing days, featured nearly 130 lay witnesses, a dozen expert witnesses and almost 6,000 public submissions.

ABLA CEO Nigel Ward said:

"ABLA was the leading law firm in this important and public industrial case. We are very proud of the contribution of our team, spearheaded by Director Luis Izzo and supported by Julian Arndt and Madeleine Tiedeman."

"A decision of this magnitude and notoriety will potential have far-reaching consequences for the industrial relations system and the economy and it is very exciting for ABLA to have played such a big part."

For more information on the Penalty Rates decision and how it affects your business, contact:

As always, if there is any issue within your business that might give rise to a claim, early intervention is the best protection. Feel free to contact us on 1300 565 846 if this raises any questions.