Changes to Sunday Penalty Rates When lay employers gave evidence to the FWC, it indicated they anticipated an increase in overall hours worked. This involved workers across Brisbane and the Sunshine Coast, mostly Anglophone, from a range of backgrounds including young adults, students and those with and without dependents. Most will require an employer to pay at least time and a half of the normal base wage for work performed on a Saturday and double time for employees who perform work on a Sunday. This might come up if you run a very small business with only a few staff. This is common in white collar workforces like accounting firms. 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. I never once received penalty rates for my work, not on public holidays or weekends, ever. The Fair Work Commission has today announced that Sunday and Public Holiday penalty rates are to be cut across Hospitality, Retail, and Fast Food Awards, while Saturday penalty rates are to remain the same. Weekend penalty rates are back on the election agenda. (Ordinary hours of work accrue superannuation and count towards overtime, while non-ordinary hours don’t. When staff pay rates go up (each year when the Fair Work updates minimum rates), are these updated automatically? Award Rule Engines: Does all of the above. Can I configure different pay rates for junior staff? The third aspect of Sunday work uncovered by these interviews was the difficulty of working on Sundays. The interviewees included: two full-time workers and 13 casuals; was evenly split by gender (seven males and eight females); included eight students; included two workers with dependants; with an even split also between retail (seven) and hospitality (eight); and covered workers ranging in age from 20 to 38 years old. I’ve Worked In Banking, Recruiting, Software, And More. Respondents’ aversion to Sunday work stemmed from the disruption to crucial shared time they would otherwise have had with family, partners and friends. Here is how Fair Work’s Pay Rate Calculator says you should have paid: Another was “really quite emotional sometimes” after missing time with her children because she felt compelled to “drag” herself “into work on occasional Sundays” in order to maintain living expenses or due to employer demands. Are staff pay rates automatically updated in the linked payroll system? Salary Costing Tools: Used to calculate payroll when all your staff are paid a fixed salary. Most award interpretation tools on the market can be used for Single Rate Calculation. Evening work Monday-Friday, and Saturday: A casual employee is not entitled to the additional penalty payment for evening work and Saturday work in clause 29.4 but must be paid an additional 10% for work performed on a Saturday between 7.00 am and 6.00 pm. Systems that treat all time as ordinary can end up costing you a lot more in labour costs – and staff won’t complain if you get that wrong!) The answer is, “not really”. The landmark cuts to weekend penalty rates in several industries will be phased in over the next four years, in a decision that has angered retailers and unions alike. What are the motivations of, and choices available to weekend workers in retail and hospitality in Australia? Many businesses remain closed on Sunday, because opening is unprofitable. A desire for more Saturday work and for less Sunday work was quite common amongst our interviewees. Most payroll systems (including MYOB and Xero) already include such a tool. Saturday Rate – Full Time In each case, public holiday rates replace any shift penalties. 35 Of course the debate over penalty and overtime rates is a matter currently under review in the Modern Awards with a push by employer groups to limit the application of weekend penalties to a blanket 25% in the light of 7 day trading. Sunday penalty rates for full time and part time hospitality workers will be reduced from 175% to 150%, rates for casuals will remain the same at 175%. Now suppose — just suppose for a minute — that a 10% cut in wages would lead to a 5% increase in hours worked. You enter the multiplier for Saturday and Sunday shifts. How Should We Respond to Workplace Change? Get ready for the s**tfight. 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. Hourly Wage Calculators: Calculates when staff get paid a single hourly rate for all hours worked. What are employees’ preferences, and why? Some Award Rule Engines also come with pre-built sets of rules called Templates. Can you configure how long a shift must be “split” before this kicks in? It acknowledges that there are “disutilities” associated with working on Sundays, and these are worse than working on Saturdays, but by much less than in the past. If this is you, you’re in luck – you will not need an additional system for award interpretation! However as soon as you have different kinds of staff, it stops working correctly. Saturday Rate – Full Time (1.5x) Based on the times or days that they work? Accommodation and food services account for another 17% working on Saturdays, and 18% working on Sundays. higher pay rates applied to employees who perform work on the weekend They were virtually incapable of working other times that would combine to create the same income they derived from Sunday work and were admittedly relying upon penalties to meet living expenses. The second aspect revealed by the interviews was control. The change increases some penalty rates for casual employees in relation to evening work and Saturday work. Sunday penalty rates for full time and part time hospitality workers will be reduced from 175% to 150%, rates for casuals will remain the same at 175%. Even where respondents did report some control, it needed to be qualified. 37.5 No changes will be made to Sunday penalty rates for Level 2 and Level 3 Employees under the Award. Also, Public Holidays, if the calculator supports it. 16. 20 Fair Work recently imposed a $143,000 penalty against a Brisbane Business Owner and his former internal Payroll and Account Manager, after it was uncovered that they had deliberately underpaid staff at a Japanese food outlet. So, if they get the chance, then almost all additional hours made available on Sundays in existing workplaces would be taken up by existing workers. Can you configure automatic allowances (like Laundry Allowances) and manual ones (like Overtime Meal Allowances)? Changes to Sunday Penalty Rates Sunday penalty rates for full time and part time hospitality workers will be reduced from 175% to 150%, rates for casuals will remain the same at 175%. Level 1 Employees under the Fast Food Award will see a reduction in Sunday penalty rates from 150% to 125% for full-time and part-time employees. The decision was handed down after more than eight months of deliberation, and comes after The Productivity Commission recommended bringing Sunday penalty rates into line with Saturday rates in 2015. (SD casual hospitality worker and student). Don’t Become Recluse When You Work From Home, Stuck at home? 25 Sunday work, however, was seen as the way to “boost the coffers”. Grumpy Motorist - February 24, 2017. Are you able to configure accrual for arbitrary leave types? Public holiday rates for full-time workers in hospitality will be reduced from 250% to 225%, with no change for casual Public Holiday penalty rates. But wouldn’t that be offset by the gains in employment? Penalty rates on weekends were introduced in 1947 as compensation for making people work when others did not have to. Can I configure specific Public Holiday dates for each employee (important if you have multiple sites with different Show Holidays or Regional Public Holidays). Labor leader Bill Shorten needs to make call on weekend penalty rates AS A former union leader, it should be Bill Shorten’s bread and butter. Does the system automatically update them on birthdays? Changes to Public Holiday Penalty Rates Many were unable to secure their preferred schedule, which would have involved working fewer Sundays. We often chat to people who have looked at a few different award interpretation tools on the market. It has been persuaded that there will be some “employment” effects, but these are unquantifiable due to the conflicting evidence presented. For an Honours project, we also undertook or supervised qualitative interviews, using a snowballed sample of 15 Sunday workers from the retail and hospitality industries. Weekday Rate – Full Time If they only get 12.5% more hours, they’ll be 16% worse off in total Sunday pay. Changes to Public Holiday rates will come into effect July 1, 2017. There are many institutional, practical and political factors at play which we will try to summarise in this article. A day worker is a worker who works their ordinary hours from Monday to Friday inclusive and commences work at or after 6AM and before 10AM. Generally, this means the business is only open for a few hours on days that it does open. As a result, many would be forced to work Sundays regardless of the change to payment structures. This is because it all boils down to what people mean when they say “employment”. Save. Over 700,000 workers will have their Sunday penalty rates slashed after the long-awaited decision was handed down on Thursday. But will lower penalty rates on Sundays discourage Sunday work? His previous study was in the field of Psychological Science and he has recently completed a Bachelor of Arts majoring in Sociology with Honours, also at Griffith. The first was the financial aspects. Casual Sunday rates for retail will also be reduced from 200% to 175%. Casuals will have a reduction from 175% to 150%. The Productivity Commission has recommended changes to weekend penalty rates, calling for Sunday rates to be brought into line with Saturday payments. Not only the ABS data, but also our interviews showed that underemployment was common. This is simple because staff are paid the same thing most pay runs. 5 ways to make money educating online. And even then they would be unambiguously worse off, working more hours for less total income. First, some background. Full time and part-time retail workers will have Sunday penalty rates reduced from 200% to 150%. If an employee gets a base rate of $20 and your Saturday multiplier is 1.5 (Time and a Half), they receive $30 on Saturday’s. Public holiday rates for full-time workers in hospitality will be reduced from 250% to 225%, with no change for casual Public Holiday penalty rates. Of these, three were already holding down multiple jobs. If you have staff that get paid hourly and receive different rates on weekdays, Saturdays, and Sundays, you might be able to use a Single Rate Calculator. How is overtime calculated if an employee takes leave midway through the pay period? However, if you have multiple employment types, or other more complex pay requirements (eg. Base Rate – Casual (1.25x) Underemployment — people wanting to work more hours than they presently work — is common amongst part-time workers. Staff at stationery chain Kikki.K will be the first employees covered by an enterprise agreement to directly face cuts as a result of the Fair Work Commission’s decision to cut weekend penalty rates. ... How do other countries view the weekend? The push for maintaining the weekend penalty rate are both a family and a a trade unions thing! However, The Commission has stated that the immediate implementation of updated Sunday penalty rates would create undue financial distress for Sunday workers. The increase in the number of wage underpayments, has led the Federal Government to introduce the Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017. The dramatic cut to penalty rates last year - predicted by the Fair Work Commission to boost jobs - was instead followed by a decline in Sunday shifts worked by employees in … (The FWC decision cut Sunday penalty rates in the fast food industry by substantially more for what it saw as “non-career” than for “career” workers.) So yeah … the money is my motivator! As such transitional arrangements for Sunday penalty rate changes will be made in the coming months. They acted to mitigate the negative effects of their predominantly involuntary Sunday employment. Overtime is when your employee works more than 38 hours per week or outside the ordinary hours listed in the employee’s agreement. When you enter a timesheet the system pays staff at the appropriate rate based on the days worked only. (JL, part-time student and casual retail). It pisses me off because I know they can put more of us on full-time but like having us starved of hours so we’ll work whenever. 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. Her research has focused on several areas of sociology including networks of power, gender, work and sustainability. Said one: I’ve been on this dodgy contract now for over six months and they knew I wanted to go on full-time when I started and made it seem like that would be possible…so I stuck around. With the outcome of the decision expected to come into play later this year, it is crucial that business owners have the correct tools and processes in place to update changes to wage rates correctly, and better manage their labour costs to capitalise on the penalty rate reductions. A summary of affected rates (including planned future increases) is provided below: evening hours (after 6pm on monday to friday) From 1 October 2019: 10% increase for casual employees: Please check your email to confirm your subscription. While business owners have always been liable for such breaches, it is the first case of a payroll manager being penalised under accessorial liability. August 26, 2017 — 11.18pm. “My staff get paid the same hourly rate for all hours worked.” The national debate on penalty rates is quickly shaping up to become a defining issue of the Turnbull government and the next Federal election. He previously worked at the Australian National University and in the then Commonwealth Department of Industrial Relations, spending over five years in its Senior Executive Service. Share on Facebook. By. In 2017, all penalty rate calculations were slashed by about 25-50%. Amongst our interviewees, four workers were seeking full-time employment. The problem for the Labour party and particularly Shorten, is how much this fight relies on support from the Union movement. The Fair Work Commission has decided to cut Sunday penalty rates for hundreds of thousands of retail, hospitality and fast food industry workers. A penalty rate for Sunday work was first implemented in Australia for working “unsocial” hours in 1919. Not too long ago, specific pay rates for industries were regulated at a State, rather than a Federal level. If a cut in penalty rates leads to an increase in the number of hours worked, but not to more people in jobs, are they really better off? Sunday retail and hospitality workers are set for another penalty rate cut on July 1, but small businesses say the reduction is not enough to make much of a difference to their struggling operations. Several factors seemed to have influenced the FWC’s decision. Her current projects include an Australia-wide survey on mineworker wellbeing, research on the top one per cent, and a study of finance capital and sustainability. The qualitative interviews revealed some other aspects of Sunday work. Saturday Rate – Casual Just for specific employees? One of those with low control said: I was afraid my hours would get docked if I didn’t agree to work Sundays …. This is where nobody works on weekends, receives overtime or penalty rates. "With 15 per cent unemployment staring us down the barrel of the gun, the first priority is to get people back into work," he said. David Peetz is Professor of Employment Relations at Griffith University, where he has worked for eleven years. Changes to Public Holiday rates will come into effect July 1, 2017. Which meant for instance, Sunday rates for retail workers plummeted from 200% to just 150% and public holiday rates for hospo workers were cut from 250% to 225%. Arguments against reducing Sunday penalty rates It’s really just for simple weekend rates) Each week you only enter the number of hours worked (you don’t worry about times). So we wanted to investigate several questions about this. They are well and truly struggled for entitlements – so when entitlements are somehow given away - questions are asked – the Royal Commission into Trade Unions h ave delved into this with some startling revelations. You should ask these questions before implementing a system so you don’t get burned 3 months down the track. … This includes full-time, part-time, casual or shiftworkers. “All my staff get paid a salary.” In the retail and hospitality industries alone, over 1.1 million workers regularly work on weekends. Accessorial liability has been one of the preferred tools wielded by Fair Work recently, as it focuses on looking past the principal company to further down the supply and managerial chain. 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