This week the Australian Government’s Fair Work Commission put forward recommendations to cut the penalty rates for some workers including those in the hospitality industry.

The Fair Work Commission has recommended reducing Penalty Rates across several awards so the award under which you pay your staff will determine the change to penalty rates.

These are the changes recommended for hospitality businesses:

If you pay your employees under the Hospitality Industry (General) Award 2010

Sunday Penalty Rates Reduced as follows:

Full time and part-time employees reduced from 175% to 150%
Casual employees are unchanged.

Public Holiday Penalty Rates Reduced as follows:

Full time and part-time employees reduced from 250% to 225%
Casual employees reduced from 275% to 250%

When do these apply?

Public holiday penalty rate changes commence 1 July 2017.
The date for Sunday Penalty Rate changes has not yet been announced.

If you pay your staff under the Restaurant Industry Award 2010 there are fewer changes

Only changes to Public Holiday penalty rates which are:

Full time and part-time employees reduced from 250% to 225%
Casual employees – no change.

The late-night shift loading under this award will change and will apply from shifts falling between midnight and 6 am Monday to Friday (currently this goes to 7 am).

If you pay your staff under the Registered and Licensed Clubs Award 2010 then there are no changes to penalty rates.

Any employment contracts you have with staff who fall under the impacted awards may need to be adjusted to reflect the changes. Evolve can refer you to qualified legal experts should you need assistance in this regard.

Your payroll system may also need to be adjusted accordingly. Users on Xero will need to manually adjust pay rates from the date these apply. Users of Tanda will have their awards automatically adjusted for them and this will flow through to Xero.

Full details can be found on the fair work commission’s site. In need of a Bookkeeper? Evolve Online Bookkeeping provides trusted and professional bookkeeping services in the Sunshine Coast area, don’t hesitate to contact our office for any queries.

Stacey Carmody

Stacey Carmody

Stacey runs the day to day operations of Evolve and personally oversees all client accounts and staff management. Stacey has worked in her own family business as well as larger businesses and Government. She has had exposure to a wide variety of industries and understands the stresses of running a business. She happily shares her expertise with Evolve clients to help managing their business just that little easier.

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