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Implementation of the FWC’s annual wage review and penalty rates decisions

Two pay adjustments were operative from 1 July 2017 –  the Annual Wage Review (AWR) increase and some sensible adjustments to Sunday penalty rates in the fast food, retail and hospitality industries.

The AWR increase of 3.3% recently awarded by the FWC is hefty and out of step with average wage movements across the economy. The increase applies to all industries. In contrast, the Sunday penalty rate adjustments apply only to the fast food, retail and hospitality industries, and apply only on one day of the week.

Ai Group Workplace Lawyers represented fast food industry employers in the FWC’s major Penalty Rates Case in which the Commission decided to reduce Sunday penalty rates in the fast food, retail and hospitality industries.

The Sunday penalty rates for Level 1 employees under the Fast Food Industry Award are being reduced by 5% from 1 July 2017:

  • For full-time and part-time employees, the rate is being reduced from 150% to 145%.
  • For casual employees, the rate is being reduced from 175% to 170%.

The Sunday penalty rates will be further reduced by 20% on 1 July 2018 and 20% on 1 July 2019.

Employees typically work on more than one day of the week; not just on Sundays. Therefore, in all industries employees will have their wages boosted to a much greater extent on 1 July 2017 by the 3.3% AWR increase, than any adjustment in the Sunday penalty rate.

Do you require further assistance?

For information or assistance regarding the operation of awards or enterprise agreements in relation to the Annual Wage Review or Sunday penalty rates, please contact Ai Group’s Workplace Advice Service on 1300 55 66 77.

Alternatively, if you would like assistance in varying payments to employees in relation to the Annual Wage Review or Sunday penalty rates, please contact your local Ai Group Workplace lawyer in Sydney, Newcastle, Wollongong, Melbourne or Brisbane.

Published - 13/07/17

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