Australian Penalty Rates: Retail Industry Update (Nov. 2018)
The Fair Work Ombudsman recently updated penalty rates for staff under the Retail Award, namely:
- Saturday rate for casuals: Casuals are now entitled to an additional 15% for all work performed on a Saturday or a 5% increase from previous rates.
- Weekday evening penalty rates for casuals: Casual workers are now entitled to the evening penalty allowance, which is an additional 5% for all work performed after 6 pm. This penalty was previously only available to full time and part-time employees.
- Sunday shiftwork rate for all employees: Casual shift workers will now receive 220% for ordinary hours worked on a Sunday or a 5% decrease from previous rates. While full time and part-time shift workers will now receive 195% for ordinary hours worked on a Sunday or a 5% decrease from previous rates.
Changes are going to be phased in the next 2-3 years. Below is the schedule of the rollout, according to FWO:
FOR FULL TIME AND PART-TIME
Penalty rates ensure that employees are compensated when working shifts outside the standard working hours. This includes weekends, public holidays, overtime, late night shifts, and early morning shifts. According to the FWO website, penalty rates are affected by the following factors:
- Salary payments
- Employment contracts
- Individual flexibility arrangements (IFAs)
- A guarantee of annual earnings
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Awards & Rostering |
Easter Penalty Rates 2015 — What you need to know about paying staff
Easter is coming up soon, and that means two things! A new season of Game of Thrones to feast on, and – perhaps less excitingly – public holiday rates to pay staff. As a business owner, accountant, or bookkeeper, it’s important to be aware of how public holiday rates over Easter and ANZAC Day should be paid in your state. First, let’s see when the holidays will be in 2014. You might be surprised! If your business is open on any of these public holidays, you’ll need to pay staff the appropriate public holiday rates. You should check your award, which will tell you exactly what multiplier or penalties to apply, often under a Public Holidays section. A common multiplier is 2.5x. Some businesses pay staff salaries, or pay casually “above award”. Public holiday penalties still apply! If you have a contract, it should cover this – check with Fair Work if you are unsure. Staff who don’t work on a public holiday If you have full or part time staff who should have worked on any of the weekday public holidays – Good Friday, Easter Monday, and Easter Tuesday in specific cases – they are still entitled to pay, even if they do not work. Generally you’ll pay at base rate for the hours staff would have been entitled to. Of course, if staff do work on the day, you’ll pay at a higher rate as dictated by the award (see above). But keep in mind: this only applies if they usually work on that day. For example, a part timer in Queensland who generally works Tuesday to Thursday probably wouldn’t get paid the public holidays because there’s no public holiday on those weekdays. Check your award/agreement to be sure! If your award dictates how rostered days off work, you should check to see if staff with an RDO on a public holiday are still paid. In some states, some kinds of businesses are not permitted to open on public holidays due to trading regulations. If this applies, you will probably still be required to pay staff who would otherwise work on that weekday. Again, if you’re not sure, it’s best to ask. Staff who work on a day that isn’t a public holiday Keep in mind that the rest of the award doesn’t shut off just because it’s Easter. For example, if you are in Tasmania and pay Saturday rates, you’ll still need to pay these on Easter Saturday (which is not a public holiday for you). Did you know… If an employee takes sick leave around a public holiday (eg. Thursday April 24 to Monday April 28), they still get paid the public holiday if they were otherwise supposed to work that day (ie. full/part time) If an employee takes annual leave, public holidays during the leave period don’t count towards their annual leave balance Public holidays do not need to be paid for staff on unpaid leave Staff cannot be forced to work on a public holiday if they have reasonable grounds for doing so. Common reasons include: the amount of notice given, family responsibilities (especially over Easter), and whether one could reasonably expect the business to be open on a public holiday. Tanda’s employee time clocks automatically interpret industry awards – including public holidays – so you can be sure you paid staff right, without tedious manually data entry Add the Fair Work Infoline to your speed dial, they are always happy to help. The number to call for any payroll queries is 131 394. Note: none of the above constitutes formal payroll advice. Always check with your accountant, bookkeeper, or Fair Work.
Industry Insights |
Change Might Be Coming to Hospitality and Retail Owners
This one is looking at all you Food Produce and Hospitality business owners out there in the Tandaverse. It has been announced that the Senate will launch an inquiry into the Australian Wine Industry. Tanda users in wine country, also known as South Australia, may have already heard South Australian Senator Anne Ruston moved for the inquiry to see if there’s a market failure. This means having a look at that transition from vineyard to restaurant. In true politician style, Senator Anne Ruston says things are going well for the wine industry in Australia, but there may be opportunities we have missed and certain factors going against us. This is all very vague and contradicting. Managers and business owners out there know hearsay is useless for your growth. Facts and numbers are the things most important to you. So what does all this actually mean for you? Well, what is unusual in politics is that it seems all sides of government are for the inquiry. Senate has reported that though the broad-ranging report is still in the process of conception, it would take a look at the power and influence of retailers and wholesalers of Australian wine in domestic and international markets. Not only will it uncover information beneficial to retailers, it’ll examine existing policies like the Wine Equalisation Tax. Though it’s quite apt that the policy is named WET, refrain from wetting your lips to celebrate just yet. Things could be in the process of changing for better or worse. But this is only part of a bigger picture. Free Market Trade agreements are on the table now making it an exciting time for Australian business owners. Tanda, and we’re sure you guys too, are very keen to see how this inquiry unfolds in the near future and beyond.
Awards & Rostering |
Sunday Penalty Rates: What’s really happening?
The national debate on penalty rates is quickly shaping up to become a defining issue of the Turnbull government and the next Federal election. The debate on penalty rates cuts straight to the bone of modern political disagreement and draws a line straight down one of the most fundamental differentiators of right wing vs. left wing economics. One side of the debate (the left) believes that the Government should regulate labour markets to ensure that the most vulnerable workers in our society are protected against greedy employers, and this will lead to a long term more equitable society. The other side of the debate (the right) believes the best path is to trust the power of the market to set labour rates, the argument is that the hardest workers will naturally attract the highest pay rates and encourage the labour force as a whole to be more productive. At a more practical level, the debate in Australia is concentrated on what to do about Sunday penalty rates which are paid at double time in some industries and whether to reduce those rates to be the same as Saturday rates. There are many institutional, practical and political factors at play which we will try to summarise in this article. Arguments for reducing Sunday penalty rates The argument goes that a reduction in cost of employment on Sundays will simultaneously lift productivity and improve unemployment rates in Australia. Many businesses remain closed on Sunday, because opening is unprofitable. Advocates of the rate cut argue that although some employees would see less money in their take-home pay packet, the overall result will be lower unemployment; not only because more business will trade on Sunday, but because many businesses will choose to increase their service levels (by employing more people) when margins aren’t quite so slim. Arguments against reducing Sunday penalty rates This side of the debate worries that reducing penalty rates will be hurting those in society who need the money the most and should be rewarded at higher rates due to working more ‘unsociable’ hours. Those against penalty rate cuts are generally very sceptical that business owners will create more jobs through the pay rate cuts, and see the proposed cut as a transfer of money from employee’s back-pockets into business owners’ wallets. What about the politics? Not too long ago, specific pay rates for industries were regulated at a State, rather than a Federal level. The move to shift powers of overall rate-setting to the confines of Canberra means that this debate is now being played out on the national stage. The problem for Turnbull and the Coalition is their track-record on labour market reform. As soon as the debate shifts to penalty rates, Turnbull runs the risk of resurfacing some of the toxic politics from the WorkChoices legislation. The problem for the Labour party and particularly Shorten, is how much this fight relies on support from the Union movement. As the political mudslinging begins, this could prove to be particularly bad timing for Shorten following the damning finding of the Royal Commission into Unions. All of this is mixed in with an unpredictable cross-bench, who Turnbull will need to win the support of to push through any change. There is far more at play for both sides than the practical changes to paychecks on Sunday. For both sides this argument flares deeply held ideological principles and is seen as a skirmish on the much larger war on our nation’s attitude towards labour laws, the free-market and the role of government. Get ready for the s**tfight. At Tanda, our Award Interpretation software helps businesses ensure they are paying their staff correct penalty rates at different times throughout the week.