Reduced Penalty Rates Could Mean More Restaurant Trading Hours
Friday 6 June 2014 @ 10.18 a.m. | Industrial Law
The Fair Work Commission has reduced the Sunday penalty rate from 75% for casual employees down to 50%. This decision comes as a joy to restaurants and café owners who have been campaigning for the reduced rate for quite some time.
John Hart, chief executive of the Restaurant and Catering Industry Association has made it very clear that members of the association will now consider trading on Sundays when the reduced rate comes into effect on July 1st. Many businesses have been eagerly awaiting the decision after a long battle to have the reduced rates introduced since 2010.
John Osborn, chief operating officer at the Australian Chamber of Commerce and Industry had earlier said that these changes were necessary to take the pressure off industries that have been negatively affected by the penalty rates which has in turn led to closure on Sundays and reduced employment opportunities. Penalty rates have long been the point of contention for small business owners who argue that the penalty rates make it too expensive to employ staff on Sundays.
The Association had initially made an application for changes to the rate under the Modern Awards Review Process in 2012 which was subsequently rejected in October 2013. Not accepting defeat, the Association appeal the decision to the Fair Work Commission which accepted the Association’s argument that there was a direct link between penalty rates and employment opportunities.
Hart says:
“This is great news for operators and for staff as there will now be more hours of work available...And it is great news for consumers, who will have more restaurants to choose from on Sundays. It’s a win for everyone.”
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