Arguments for reducing Sunday penalty rates Casuals will have a reduction from 175% to 150%. Also, Public Holidays, if the calculator supports it. When lay employers gave evidence to the FWC, it indicated they anticipated an increase in overall hours worked. Not too long ago, specific pay rates for industries were regulated at a State, rather than a Federal level. Most are not really sure which award interpretation tool is right for their business. 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%. What are the motivations of, and choices available to weekend workers in retail and hospitality in Australia? 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. Scott Bruynius is a PhD candidate within the School of Government and Business at Griffith University, and currently undertaking research in Employment Relations. Single Rate Calculators: Pays staff only single types of pay like weekday, Saturday and Sunday rates. The Different Kinds of Award Interpreters, We often chat to people who have looked at a few different award interpretation tools on the market. Select your award from our interactive tool below to see a full summary of penalty rate changes. Salary Costing Tools: Used to calculate payroll when all your staff are paid a fixed salary. The problem for the Labour party and particularly Shorten, is how much this fight relies on support from the Union movement. (JL, part-time student and casual retail). Most payroll systems (including MYOB and Xero) already include such a tool. Arguments against reducing Sunday penalty rates If that’s what you need, just pick whichever looks good and is well supported. The increase in the number of wage underpayments, has led the Federal Government to introduce the Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017. 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. The politics might be different but nothing has changed about the reasons employers and employees alike should reject a weakening of conditions. In addition, they also calculate overtime, penalty rates, allowances, accruals and leave. higher pay rates applied to employees who perform work on the weekend accommodation and food services) industries. 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. It’s really just for simple weekend rates) One side of the debate (the left) believes that the Government should regulate labour markets to ensure that the most vulnerable workers in our society are protected against greedy employers, and this will lead to a long term more equitable society. Advocates of the rate cut argue that although some employees would see less money in their take-home pay packet, the overall result will be lower unemployment; not only because more business will trade on Sunday, but because many businesses will choose to increase their service levels (by employing more people) when margins aren’t quite so slim. Some had positive perceptions that principally derived from their social cohesion at work — that is, they worked with close friends or partners. And even then they would be unambiguously worse off, working more hours for less total income. (JM, ongoing-casual retail worker). If you only employ salaried staff, a Salary Costing Tool is perfect for you. In most awards, you’re meant to apply the 1.5 multiplier and then the 25% casual loading! 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. everyone is Full Time) then this might work for you. A penalty rate for Sunday work was first implemented in Australia for working “unsocial” hours in 1919. Sunday Penalty Rates: What’s really happening? First, some background. Three were under the impression they exercised control over their schedule. A shift worker is a worker who is not a day worker. From the ABS data we can see that retailing accounts for 22% of employees usually or sometimes working on Saturdays, and 20% of employees usually or sometimes working on Sundays. Keep in mind that if any of your staff ever get more than one pay rate in a week, an hourly wage calculator won’t work as well anymore (even if it doesn’t regularly happen). Grumpy Motorist - February 24, 2017. 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. A good template will include all of the base rates for different levels of staff (each employee will have a minimum wage and the template should include this). Most are not really sure which award interpretation tool is right for their business. Why Penalty Rates are Important Penalty rates have the biggest impact on workers in the service industries like hospitality, retail, aged care, child care and cleaning. Weekday Rate – Full Time 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? McDonald's defends not paying weekend penalty rates and shoppies union wage deal. In 2017, all penalty rate calculations were slashed by about 25-50%. 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. However, The Commission has stated that the immediate implementation of updated Sunday penalty rates would create undue financial distress for Sunday workers. Can I set different Saturday/Sunday multipliers for Full Time and Casual staff? By. It will seek to hold franchisors and holding companies responsible for actions of their franchisees and subsidiaries, if they are found to be in breach of the Fair Work Act. Weekend penalty rates are back on the election agenda. Full time and part-time retail workers will have Sunday penalty rates reduced from 200% to 150%. Lvl 6/545 Queen St,Brisbane City QLD 4000Australia. But wouldn’t that be offset by the gains in employment? But their choices are constrained by several things affecting their availability. If they only get 12.5% more hours, they’ll be 16% worse off in total Sunday pay. There are four different kinds and the right one depends on how your staff get paid. I am trained on tills, floor, cosmetics and as a pharmacy assistant and yet I only make $11.50? Those with low autonomy reported that penalty rates were an essential element in accepting Sunday work. What about the politics? While business owners have always been liable for such breaches, it is the first case of a payroll manager being penalised under accessorial liability. 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. Hopefully, this post has helped clear some confusion around the types of tools that exist in the market and what you can use depending on how your workforce is set up. Award Rule Engines: Does all of the above. This is simple because staff are paid the same thing most pay runs. This might come up if you run a very small business with only a few staff. We often chat to people who have looked at a few different award interpretation tools on the market. Can the engine pay the correct allowances for split shifts? 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!) When using a Single Rate Award Calculator, you enter the hourly rate that each employee gets during the week. This is common in white collar workforces like accounting firms. 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. And to the extent that this overestimates the “employment” gains, their losses would be even greater again. By the way… with Tanda’s Award Rule Engine, the answer to all those questions is yes! Saturday Rate – Full Time 30 Penalty rates are different from working overtime. By Ben Schneiders and Royce Millar. Sunday work, however, was seen as the way to “boost the coffers”. 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 […], 2 March 2017    |    Events & Media AU    |. However, it also covers different rates within the same day and for different employment types. Changes to Public Holiday Penalty Rates Here’s some other things to keep an eye out for when comparing Award Rule Engines. 25 However, The Commission has stated that the immediate implementation of updated Sunday penalty rates would create undue financial distress for Sunday workers. The 550 Kikki.K workers are covered by a new enterprise agreement approved last month. 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. Why do these only work for one employment type? 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. This was particularly the case for full-time students, dispelling any idea that these were “non-career” employees whose needs were unimportant. 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. The tool multiplies the hourly rate by the number of hours to calculate total pay. In short, the employment effects of the FWC decision, to the extent that they exist, are very unlikely to offset the significant problems we already see, through our research, with Sunday work in retail and hospitality: low wages, underemployment, low employee control, and the “disutilities” of spending time away from friends and families. Share on Facebook. It’s easy to miss subtle wordings in Awards that require you to pay different rates at different times. This table shows how a Single Rate Award Calculator would calculate the cost of two shifts. “I have to manage RDO or TOIL accruals and leave” In each case, public holiday rates replace any shift penalties. Does the system automatically update them on birthdays? Four had “some control” (mostly these were students). 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. This includes full-time, part-time, casual or shiftworkers. Amongst the weekend workers who we interviewed, all were generally averse to working on Sundays one way or another. Many workers on penalty rates … 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. The incomes of the casuals were mostly in the range of $400–650 per week. In the retail and hospitality industries alone, over 1.1 million workers regularly work on weekends. So reducing penalty rates in retail will affect not only tertiary students but also a significant number of people who are likely to be dependent on this wage as their sole source of income. But the majority voiced concern about refusing Sunday work due to either job insecurity, the prospect of employer retribution or underemployment. How is overtime calculated if an employee takes leave midway through the pay period? It has demonstrated structural increases over time across the economy as part-time employment has grown. Just for specific employees? Get ready for the s**tfight. Penalty rates in the Restaurant, Hospitality, Pharmacy, Fast Food and Retail awards have been gradually changing since 2017. The third aspect of Sunday work uncovered by these interviews was the difficulty of working on Sundays. 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 month after Prime Minister Malcolm Turnbull described penalty rates as ‘out-dated’, the Productivity Commission recommended changes for workers in the entertainment, hospitality and […] The push for maintaining the weekend penalty rate are both a family and a a trade unions thing! 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