The FWC’s decision dealing with Sunday penalty rates can be found via this link:Īn employer’s ability to reduce penalty rates will depend on the terms of any applicable contract of employment. The transition period will commence on 1 July 2017 and run for a period of 3 or 4 years depending on the relevant modern award. However, even where an employer utilises annualised salary arrangements, the new financial year is a good time to check that the rates of pay are compliant with any modern award or national minimum wage requirements.Įmployers (who are covered by any of the following modern awards: Fast Food Industry Award 2010 General Retail Industry Award 2010 Hospitality Industry (General) Award 2010 or Pharmacy Industry Award 2010) will need to carefully consider the transitional arrangements relating to the reduction of Sunday penalty rates. Where an employer pays its employees an annualised salary in excess of (and in satisfaction of) all award entitlements, it will not (depending on the precise terms of the relevant employment contract) be necessary to increase the employees’ salaries where the amounts paid are already above the required minimum rates. The FWC states that more than 2.3 million workers in Australia are reliant on award rates of pay. The FWC’s decision to increase the national minimum wage and modern award rates by 3.3% only impacts those employees who are paid in accordance with the national minimum wage or a modern award. The transition periods commence on 1 July 2017.Ĭivil penalties for breaches of the FW Act will increase to $63,000 for a corporate entity and $12,600 for an individual for contraventions which occur after 1 July 2017. Sunday penalty rates will be reduced over a transition period in the following modern awards: Fast Food Industry Award 2010 General Retail Industry Award 2010 Hospitality Industry (General) Award 2010 and Pharmacy Industry Award 2010. The national minimum wage will apply to any employee who is not covered by a modern award. From 1 July 2017, the weekly minimum wage will be $694.90 per week, or $18.29 per hour. The FWC has granted a 3.3% increase to the national minimum wage and the minimum pay rates under modern awards. CIVIL PENALTIES FOR BREACHES OF THE FAIR WORK ACT 2009 (CTH) (FW ACT) WILL INCREASE ON 1 JULY 2017. SUNDAY PENALTY RATES IN A LIMITED NUMBER OF MODERN AWARDS WILL REDUCE ON 1 JULY 2017 WITH THE COMMENCEMENT OF A TRANSITION PERIOD. THE FAIR WORK COMMISSION (FWC) HAS HANDED DOWN ITS DECISION ON MINIMUM PAY, PROVIDING AN INCREASE OF 3.3% TO THE NATIONAL MINIMUM WAGE AND MINIMUM AWARD RATES.
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