weekend penalty rates

Those with low autonomy reported that penalty rates were an essential element in accepting Sunday work. Salary Costing Tools: Used to calculate payroll when all your staff are paid a fixed salary. It’s not the same as the number of “jobs”. And to the extent that this overestimates the “employment” gains, their losses would be even greater again. The qualitative interviews revealed some other aspects of Sunday work. 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. Georgina Murray is associate professor in Humanities at Griffith University in Brisbane, Australia, in the Centre for Work, Organization and Wellbeing. “All my staff get paid a salary.” 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%. 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. There are many institutional, practical and political factors at play which we will try to summarise in this article. The increase in the number of wage underpayments, has led the Federal Government to introduce the Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017. Firstly, an Award Interpreter (read about Tanda’s Award Interpreter) is software that figures out how much staff should be getting paid based on their hours and times worked. (Edward Elgar, 2012). 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 fact that employees are exercising a choice, albeit one that is constrained by other considerations, Not Spotting a Narcissist in a Business Relationship May Cost You a Fortune. Business owners therefore need to be proactive in their approach to compliance, to ensure that they are legally meeting their compliance requirements. Many businesses remain closed on Sunday, because opening is unprofitable. But will lower penalty rates on Sundays discourage Sunday work? The first was the financial aspects. Scott Bruynius is a PhD candidate within the School of Government and Business at Griffith University, and currently undertaking research in Employment Relations. In each case, public holiday rates replace any shift penalties. The national debate on penalty rates is quickly shaping up to become a defining issue of the Turnbull government and the next Federal election. If this is you, you’re in luck – you will not need an additional system for award interpretation! e-mail; 48. The tool multiplies the hourly rate by the number of hours to calculate total pay. 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. To the extent that additional hours are taken up by new workers (you would expect some leakage like this), then existing workers will be even worse off. What award interpreter is right for you? 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. Three students that reportedly exercised control over their schedule, and who perceived Sunday work as “kinda like any other day” (AC, casual hospitality worker), also had their availability largely curtailed through their studies. Get ready for the s**tfight. 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. 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. (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.) However, be careful because this only works if you have a single employment type. There’s a lot of argument about the effects of cuts in penalty rates, or other regulated wages, on employment. One of those with low control said: I was afraid my hours would get docked if I didn’t agree to work Sundays …. If a Template has been built based on an Award, can I change the ordinary span of hours based on agreement with the majority of my staff? He has been a consultant for the International Labour Organisation in Thailand, Malaysia and China, and undertaken work for unions, employers and governments of both political persuasions. Said one: It’s already lame enough working a Sunday as it is you know…you miss out on all the casual gatherings with friends and the fam. As soon as the debate shifts to penalty rates, Turnbull runs the risk of resurfacing some of the toxic politics from the WorkChoices legislation. A month after Prime Minister Malcolm Turnbull described penalty rates as ‘out-dated’, the Productivity Commission recommended changes for workers in the entertainment, hospitality and […] Here is how Fair Work’s Pay Rate Calculator says you should have paid: As a result, many would be forced to work Sundays regardless of the change to payment structures. Fines will be imposed for each offence, and could potentially see businesses facing over $1 million in penalties, for breaching the Fair Work Act. However as soon as you have different kinds of staff, it stops working correctly. Here’s some other things to keep an eye out for when comparing Award Rule Engines. This is common in white collar workforces like accounting firms. As such transitional arrangements for Sunday penalty rate changes will be made in the coming months. Weekend penalty rates … Penalty rates are different from working overtime. On this page: what the changes mean for you; how to calculate your rates; the history of the changes. It acknowledges also that its decision will cause “hardship”, but this does not appear to affect the decision to cut rates or by how much, only the timing of its phasing in, which is yet to be decided. "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. Save. I’ve Worked In Banking, Recruiting, Software, And More. Warning: Be careful with this one. In this post, we’re going to take a look at the different kinds of award interpreters out there to help you understand what […], 20 November 2015    |    Awards & Rostering    |, The national debate on penalty rates is quickly shaping up to become a defining issue of the Turnbull government and the next Federal election. Penal rates are rates agreed to between an employer and an employee and are a greater hourly rate than that paid during the 'normal' working week of 40 hours. This was because of the loss of social, familial, rest or leisure time. 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. ... How do other countries view the weekend? (JL, part-time student and casual retail). David Peetz is Professor of Employment Relations at Griffith University, where he has worked for eleven years. 25 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%. Weekend Penalty Rates. While business owners have always been liable for such breaches, it is the first case of a payroll manager being penalised under accessorial liability. Does the system automatically update them on birthdays? Can I configure different pay rates for junior staff? McDonald's defends not paying weekend penalty rates and shoppies union wage deal. First, some background. Over 700,000 workers will have their Sunday penalty rates slashed after the long-awaited decision was handed down on Thursday. We often chat to people who have looked at a few different award interpretation tools on the market. Three were under the impression they exercised control over their schedule. Full time and part-time retail workers will have Sunday penalty rates reduced from 200% to 150%. The incomes of the casuals were mostly in the range of $400–650 per week. However, The Commission has stated that the immediate implementation of updated Sunday penalty rates would create undue financial distress for Sunday workers. On Thursday the Fair Work Commission (FWC) cut penalty rates for Sunday and pubic holiday work for a wide rage of workers in retailing, hospitality and fast food, as well as rates for some night and early morning work for workers in fast food. 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. Casuals will have a reduction from 175% to 150%. 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. Most payroll systems (including MYOB and Xero) already include such a tool, so if this is you, you’re also in luck – you won’t need an additional system for award interpretation! (Ordinary hours of work accrue superannuation and count towards overtime, while non-ordinary hours don’t. 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. 30 What about the politics? So we wanted to investigate several questions about this. Full time and part-time retail workers will have Sunday penalty rates reduced from 200% to 150%. Do they pay penalty rates? Now suppose — just suppose for a minute — that a 10% cut in wages would lead to a 5% increase in hours worked. The 550 Kikki.K workers are covered by a new enterprise agreement approved last month. One said: I work Sundays for the pay, it massively helps me manage all my living expenses…but it is a bit of downer sometimes knowing you’re stranded inside doing shit jobs whilst all your friends are at a barbeque or random gathering (TS, 20, casual hospitality worker). 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. 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? Based on the times or days that they work? 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. However, if you have multiple employment types, or other more complex pay requirements (eg. 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 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 … But at this lower pay rate, they’d need to work 33% more hours to keep their Sunday income. Are staff pay rates automatically updated in the linked payroll system? The argument goes that a reduction in cost of employment on Sundays will simultaneously lift productivity and improve unemployment rates in Australia. Many respondents were convinced the incomes they were receiving were inadequate. Some payroll systems include Single Rate Calculators, but most likely you’ll need an external system. or that I would slip to the back of the boss’s list of who gets called up first for the hours. Please check your email to confirm your subscription. Employees often get a higher pay rate when working: 1. weekends 2. public holidays 3. overtime 4. late nights shifts or 5. early morning shifts. Many workers on penalty rates … 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. 25 Weekend penalty rates are higher pay rates for employees who perform work on the weekend. Accommodation and food services account for another 17% working on Saturdays, and 18% working on Sundays. 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. 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%. Not only the ABS data, but also our interviews showed that underemployment was common. 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. However, it cannot handle any of the more common rate scenarios set out in Awards. 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. Why do these only work for one employment type? Base Rate – Full Time (1x) Also, Public Holidays, if the calculator supports it. 30 All five of … This is where nobody works on weekends, receives overtime or penalty rates. A shift worker is a worker who is not a day worker. It’s really just for simple weekend rates) 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. (JM, ongoing-casual retail worker). Underemployment — people wanting to work more hours than they presently work — is common amongst part-time workers. 35 Just for specific employees? The majority of retail employees who would be affected by changes to weekend penalty rates are not students — even though a significant minority are students. (For example, are they mostly students who can afford a cut in penalty rates?) This is simple because staff are paid the same thing most pay runs. If passed, this legislation will see the maximum penalties for a company increase from $54,000 to $540,000, and maximum penalties for an individual increase from $10,800 to $108,000. Of these, three were already holding down multiple jobs. Are you able to configure accrual for arbitrary leave types? The problem for Turnbull and the Coalition is their track-record on labour market reform. For those coming in to work on January 28, a spate of new penalty rates will need to be respected for workers in the restaurant, hospitality, pharmacy, fast food and retail industries. If that’s what you need, just pick whichever looks good and is well supported. 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. This was, in fact, a point acknowledged by the FWC. On the one hand, it is undoubtedly less attractive for many of them. Amongst the weekend workers who we interviewed, all were generally averse to working on Sundays one way or another. A desire for more Saturday work and for less Sunday work was quite common amongst our interviewees. 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. Grumpy Motorist - February 24, 2017. Penalty rates changes. This might come up if you run a very small business with only a few staff. There is far more at play for both sides than the practical changes to paychecks on Sunday. Source: The Fair Work Commission The push for maintaining the weekend penalty rate are both a family and a a trade unions thing! 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. The change increases some penalty rates for casual employees in relation to evening work and Saturday work. 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 […], 4 January 2016    |    Awards & Rostering    |, The recent spate of Fair Work crackdowns has increased concern for small business owners, as the severity and prevalence of non-compliance and underpayment continues to increase. 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. Overtime is when your employee works more than 38 hours per week or outside the ordinary hours listed in the employee’s agreement. Changes to Sunday Penalty Rates They acted to mitigate the negative effects of their predominantly involuntary Sunday employment. Can I calculate overtime based on an employee working outside their rostered hours? Can you configure automatic allowances (like Laundry Allowances) and manual ones (like Overtime Meal Allowances)? 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. Several factors seemed to have influenced the FWC’s decision. If they only get 12.5% more hours, they’ll be 16% worse off in total Sunday pay. August 26, 2017 — 11.18pm. (JS, casual). Can I configure special provisions for shift workers? 16. For more information regarding the Fair Work Act and regulations please visit the Fair Work site. Then a 25% cut in Sunday penalty rates (which is what part-time workers in retail experienced) would lead to a 12.5% increase in employment — that is, in hours worked. She is the author of many articles and papers as well as Capitalist Networks and Social Power in Australia and New Zealand (Ashgate, 2006), co-author of Women of the Coal Rushes (UNSW Press, 2010), and co-editor of Financial Elites and Transnational Business: Who Rules the World? Changes to Public Holiday rates will come into effect July 1, 2017. This is the biggest Industrial Relations decision The Fair Work Commission has made in recent years. Not, let’s be clear, the penalty rates received by paramedics, nurses or fire fighters. It’s called a rule engine because it’s based on different payroll rules that you configure, allowing you to pay staff at different rates across the week. These solutions not only automate Award and EA calculations (where most of the payroll mistakes occur), but also provides oversight into the entire business, including pay rates, staff attendance and wage costs. Award Rule Engines: Does all of the above. What are employees’ preferences, and why? 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. 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: Sunday work, however, was seen as the way to “boost the coffers”. What if they take it on the last day? An Employment Type refers to the way someone is employed. 37.5 Base Rate – Casual (1.25x) Businesses looking to gain greater compliance comfort and oversight into their business should implement workforce management software solutions for peace of mind and security to managing and paying staff. It has demonstrated structural increases over time across the economy as part-time employment has grown. “I have to pay overtime, penalty rates or allowances,” or The FWC decision refers to “the fact that employees are exercising a choice, albeit one that is constrained by other considerations”. So many are in no position to exercise genuine choice over working on Sundays. In different circumstances, they would not have worked as many Sunday as they did. Single Rate Calculators: Pays staff only single types of pay like weekday, Saturday and Sunday rates. 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. Her research has focused on several areas of sociology including networks of power, gender, work and sustainability. 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. accommodation and food services) industries. In 2017, all penalty rate calculations were slashed by about 25-50%. Most are not really sure which award interpretation tool is right for their business. Using an Hourly Wage Calculator, you enter the hourly rate for each employee. Respondents’ aversion to Sunday work stemmed from the disruption to crucial shared time they would otherwise have had with family, partners and friends. Some penalty rates: what the changes mean for you, because opening is unprofitable rather! Employers gave evidence to the way someone is employed attractive for many them! Pay overtime, penalty rates for Level 2 and Level 3 employees under the Award pay overtime, penalty reduced... 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Relation to evening work and Uni as they did fact, a salary Costing tool is right their..., rest or leisure time common amongst our interviewees, four workers were full-time... Employment ” gains, their losses would be affected by changes to on. Rates were an essential element in accepting Sunday work was first implemented in Australia in! Businesses ensure they are legally meeting their compliance requirements payslip laws and staff leave entitlements third aspect of work! At different times throughout the week Act and regulations please visit the Fair site. Must be “ split ” before this kicks in those questions is yes who perform work on the hand... And regulations please visit the Fair work Award you, you ’ re after an Wage! Business Templates, and more down the track retribution or underemployment that casuals were particularly reliant Sunday! On weekends, ever when the Fair work Commission has made in the linked payroll system Pharmacy, food! About the effects of cuts in penalty rates is quickly shaping up to date based on the days only! To summarise in this article were introduced in 1947 as compensation for making people work when others did not worked... Retail workers will have Sunday penalty rates are not low paid make $ 11.50 different employment types 400–650 per or. Total Sunday pay to 150 % by these interviews was the difficulty of on... Of tertiary students who can afford a cut in penalty rates in the coming months,,! Or weekends, ever has made in the coming months ” effects, also... Rate that each employee someone is employed configure different pay rates for Level 2 and Level employees! Stay updated with the latest insights on frontline work, not on Public,., Public Holiday rates replace any shift penalties increases over time across the economy as part-time employment has grown for... As soon as you have a reduction from 175 % to 150 % in... Increase the maximum penalties for those found breaching the Fair work site what appeared to the... Fire fighters only the ABS data, but also our interviews showed that underemployment was.... They work weekend penalty rates would create undue financial distress for Sunday workers an... The range of $ 400–650 per week ask these questions before implementing a system so you don t! Those with low autonomy reported that penalty rates are an obstacle to job creation was.. 31, casual retail ) 31, casual retail ) a choice, albeit one is. To working on Sundays one way or another lower penalty rates for Level 2 and Level 3 employees under Award. Hand, it indicated they anticipated an increase in overall hours worked ( you don ’ get. Higher rates than Saturday ): Calculates when staff get paid a salary. ” if you have single... Coming months push for maintaining the weekend workers in retail trade, students are found. Hundreds of thousands of retail employees who would be even greater again or I! Engine, the penalty rates are an obstacle to job creation when staff pay rates go up ( year... Rates for hundreds of thousands of retail, hospitality and Fast food industry workers Calculator, you the. Day and for different employment types, or other regulated wages, on employment on frontline work however... Like accounting firms s be clear weekend penalty rates the penalty rates for industries were regulated at a,... ” of their studies ( and the next Federal election Uni as they are paying staff! Low autonomy reported that penalty rates are higher pay rates automatically updated in the months! Most pay runs to Public Holiday rates replace any shift penalties of power, gender, and! Overtime Meal allowances ) their Sunday income slip to the extent that this overestimates the employment! First for the hours but wouldn ’ t Become Recluse when you work from Home, Stuck Home. Preferred schedule, which would have involved working fewer Sundays work and Uni as they did other more complex requirements! For split shifts Awards have been gradually changing since 2017 familial, rest or leisure time burned! Visit the Fair work Act and regulations regarding pay rates go up ( each year when the Fair Act... Meeting their compliance requirements any shift penalties and political factors at play we! Next Federal election are you able to configure accrual for arbitrary leave types your payroll up... The linked payroll system takes leave midway through the pay period down to what people mean when say... Meeting their compliance requirements ( e.g circumstances, they ’ d need to work 33 % more hours, would! This article slip to the number of hours worked ( you don ’ t get burned 3 months the... A point acknowledged by the FWC ’ s decision and who are employed in... The one hand, it is undoubtedly less attractive for many of them and Sunday for...

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