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FAIR WORK COMMISSION PENALTY RATES DECISION

 

17 March 2017

RESTAURANT INDUSTRY AWARD 2010 HOSPITALITY INDUSTRY (GENERAL) AWARD 2010

 

BACKGROUND

The Fair Work Commission (FWC) on 23 February 2016 released its long-awaited decision on penalty rates in the hospitality and retail industries.

The decision relates to claims by employer associations for reduced weekend and public holiday penalty rates in the following Modern Awards:

  • Restaurant Industry Award 2010 (“Restaurant Award”);
  • Hospitality Industry (General) Award 2010 (“Hospitality Award”);
  • Fast Food Industry Award 2010;
  • General Retail Industry Award 2010;
  • Pharmacy Industry Award 2010; and
  • Registered and Licensed Clubs Award

The decision handed down by the Fair Work Commission does not affect penalty rates in the Wine Industry Award 2010. This includes cellar door sales, vineyards, cellar (production), laboratories, bottling and warehouse.

Out of the six hospitality and retail industry awards listed above only the Restaurant Award and the Hospitality Award can have application (albeit limited) to some aspects of the operations in the wine industry.

RESTAURANT AWARD

Coverage for employers / employees

The Restaurant Award covers restaurants, reception centres and cafés. In the wine industry the Restaurant Award can apply to some operations and employees, for example chefs, cooks, kitchen hands and food and beverage attendants working solely or predominantly in a restaurant, café or function/reception centre operated by the winery.

Penalty rates reduction

In relation to the claims for reduced weekend and public holiday penalty rates in the Restaurant Award, the FWC made the following decision:

  • Reducing the public holiday penalty rate for permanent employees to 225% from 250%;
  • Maintaining the public holiday penalty rate for casual employees at 250%;
  • Maintaining the Sunday penalty rate at 150%; and
  • Maintaining the level of the late night penalty rate, but reduce the application of the late night penalty with one hour until

Commencement

The reduction in the public holiday penalty rates will take effect on 1 July 2017. The variation to the late night penalty in the Restaurant Award will take effect in late March 2017.

HOSPITALITY AWARD

Coverage for employers / employees

The Hospitality Award covers hotels, pubs, bars, accommodation providers including private hotels, holiday flats or units, guest houses, resorts, serviced apartments or any other type of residential or tourist accommodation and “stand-alone” caterers not operated by a restaurant.

In the wine industry the Hospitality Award may apply to some operations and employees, for example guest service employees, cleaners, gardeners, maintenance and front office employees servicing any on-site accommodation provided by a winery. However, the Hospitality Award does not apply to a restaurant, café or function/reception centre operated by the winery.

Penalty rates reduction

In relation to the claims for reduced weekend and public holiday penalty rates in the Hospitality Award, the FWC made the following decision:

  • Reducing the Sunday penalty rate for permanent employees to 150% from 175%;
  • Maintaining the Sunday penalty rate for casual employees at 175%;
  • Reducing the public holiday penalty rate for permanent employees to 225% from 250%; and
  • Reducing the public holiday penalty rate for casual employees to 250% from 275%.

Commencement

The reduction in the public holiday penalty rates will take effect on 1 July 2017.

However, the reduction in Sunday penalty rates will be gradually phased in over at least 2 years. FWC will be conducting consultation with interested parties (employer associations and unions) as to the most appropriate phasing in arrangements and will issue a decision in due course after a formal hearing in May 2017.

FURTHER INFORMATION, ASSISTANCE & THE PROVISION OF EVIDENCE

South Australian Wine Industry Association

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