Fair Work Announces Penalty Rates Transitional Arrangements
Today the Fair Work Commission has released its decision regarding the Transitional Arrangements to the changes in penalty rates.
On February 23 2017, the Fair Work Commission released its decision to amend Sunday and Public Holiday penalty rates in a number of Modern Awards.
Sunday Penalty Rate Changes
Sunday penalty rates will be reduced to 150% for full-time and part-time employees under the Hospitality Award, the Retail Award, and Pharmacy Award.
Sunday penalty rates will be reduced to 175% for casual employees under the Retail and Pharmacy Award. The Sunday penalty rate for casual employees under the Hospitality Award remains unchanged at 175%.
Sunday penalty rates for Level 1 Fast Food Award employees will also be changed. Full-time and part-time employees will see a reduction to 125%, and casual employees will see a reduction to 150%.
Public Holiday penalty rates were also reduced for the Hospitality, Retail, Pharmacy, Fast Food and Restaurant Awards.
The Fair Work Commission faced backlash over the decision, with many employee industry groups citing that a reduction in penalty rates would leave the ‘most vulnerable’ workers worse off as a result of taking home less pay. The Commission has today announced that it was not sufficiently persuaded that the impacts were substantive enough to not go ahead with the proposed changes, citing the positive employment benefits as more significant. It has also rejected the SDA’s request of introducing different transitional arrangements for current staff and employees employed after July 1 2017, as it would potentially create significant disharmony between employees, and additional complexities for employers transitioning to the new penalty rates.
As such, the Fair Work Commission has announced its Transitional Arrangements for the relevant Modern Awards, these are outlined below.
Transitional Arrangements to Penalty Rates
Transitional Arrangements Fast Food Award
Transitional Arrangements Hospitality Award
Transitional Arrangements Retail Award
Transitional Arrangements Pharmacy Award
Proposed Changes to Public Holiday Penalty Rates
The proposed changes to Public Holiday penalty rates will take effect July 1 2017, without transitional arrangements.
For more information on the Transitional Arrangements made to the aforementioned Awards, please visit the Fair Work Commission website.
Awards & Rostering |
Easter is coming! What you need to know about paying your 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). Tell me some more interesting facts about payroll around public hoildays 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 Where can I get help? 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. What’s your favourite easter treat? We’re impartial to Lindt chocolate bunnies. Yum. 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.
Clients & Partners Industry Insights Product Updates |
Triumph for Tanda clients – and here’s the proof
Tanda works to help your business succeed by taking the dramas and expense of time and attendance out of your equation. That’s why we love to celebrate when we see our clients are doing so well. Brisbane-based company The Print Bar has been with us for a long time now and came to us with some exciting news this week. The 27-year old director of The Print Bar, Jared Fullinfaw, has been named 2015 Australian Small Business Championship’s (ASBC) Young Entrepreneur. Now in The Print Bar’s fourth year of operation, Fullinfaw feels this award is a push to the next level for his team and an inspirational message for the Australian small business community. “Being named the Australian Small Business Champion Entrepreneur for 2015 makes all the hours, sleepless nights and other sacrifices small business owners make worth it”, says Fullinfaw. These sacrifices are indeed important, as many Australian business owners will understand. We’re sure many of you reading this now can bring a few to mind when you think of the sacrifices you may have made for the future of your business. That’s why here at TandaHQ we’re flattered to hear the gratitude that came from The Print Bar. The team at Print Bar said “We also wanted a say a big thanks to you [Tanda] for being with us on this journey. You’ve all been a part of it and we’re excited for what the future will bring!” Fullinfaw views this win as a way to bring his own team and the Australian small business community together and strengthen Brisbane’s growing reputation nationally for innovation and creativity. We love to share the love, so if you have your own exciting news let Tanda know! We already know Tanda is helping businesses nation-wide, but it’s always nice to hear it from time to time as well.