Employment Relationship - Australia

This report discusses the reduction in penalty rates in Australia and its impacts on employers and employees. It also suggests actions to reduce the impacts of the reduction.

qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmrtyuiopa
Employment Relationship

EMPLOYEMENT RELATIONSHIP – AUSTRALIA 1
Contents
Introduction.................................................................................................................................................1
Reduction in penalty rates...........................................................................................................................2
Impacts of reduced penalty rates on employers.......................................................................................4
Impact of reduced penalty rates on employees........................................................................................4
Action has to be taken to reduce impacts of the reduction of penalty rates..............................................7
Conclusion...................................................................................................................................................8
Bibliography................................................................................................................................................9

EMPLOYEMENT RELATIONSHIP – AUSTRALIA 2
Introduction
Fair commission was also known as Fair Work Australia. It is the Australian employment
or industrial relation tribunal which is made by the Fair Work Act 2009. The FC is responsible to
take the decision for sustaining industrial relation across Australia. The commission also
performs operations and functions which were previously performed by Australian workplace
authority Fair pay commission. The commission authority responsibilities involve the setting and
changing industrial awards, minimum wages, dispute resolution, and many others (FWC, 2018).
In February 2017 FWC took a decision regards public holiday and weekend penalty rates
and also other related matters. However, the reductions in Sunday and weekend penalty applies
to some modern awards (FWC, 2017). These changes bring any kinds of employment relations
issues in Australia. Cutting in penalty rates will cause young people most as the majority
workforce is under 25. These reductions in penalty rates will impact on employer and employee
relations and also people’s social life and capability to involve in family life and healthy life.
This report wills identity all the issues which arise due to the decision of modern awards- penalty
rates by FWC and also critiquing those issues to the unit coordinator.

EMPLOYEMENT RELATIONSHIP – AUSTRALIA 3
Reduction in penalty rates
New changes in law bring many kinds of issues in Australia. Since the FWC took decision fir
decrement in penalties for Sunday and holiday for the retail and hospitality industry, the topic
brought polarizing thought across Australia (Doyle, 2017).
Penalty rates have protected the weekend in the country. Around more than 100 years
Australians incentivized irregular work hours and reimburse the employee for their personal time
apart from friends and family. There is many views regard this FWC’s new decision, but
whichever views people have, there is no uncertainty that punishment rates keep on having an
authentic job in remunerating representatives for working extended periods of time or working at
asocial occasions (Ahurst, 2016).
 Basically, FWC’s new penalty rate applies on
 Food industry Award 2010
 General Retail industry award 2010
 Hospitality industry
 Pharmacy industry award 2010
 Registered and licensed clubs award 2010
 Restaurant industry award 2010 (FWC, 2017)
The reason is Why FWC specialized these sectors to reduce penalty is only because these
sectors did not accomplish the objective of existing modern awards and these industries do not
deliver minimum, fair and safety net in Australia (FWC, 2017).
However, it is indeed to admit the penalty rates are not set in stone, and continuously has to
be review and change as per the community requirements.

EMPLOYEMENT RELATIONSHIP – AUSTRALIA 4
It can be contended that penalty rates never again serve the capacity they once did in pulling in
employee to work amid ugly, unsocial hours, since, because of changes in the arrangement of the
labor force, decreases in the length of the standard working week and working year, and
development in joblessness, the hours inclinations of representatives have changed.
Impacts of reduced penalty rates on employers
There is a lot of crisis arise by many politicians and employers and employee and
everyone is misjudge what it means and what are the actual impact it has. However, these
changes will affect those businesses which are covered by any of the modern award impacted by
the decision (Employesure, 2017).
Some small business owners have an issue as they have argued after these penalty rates
change that they cannot work on Sunday as they have to pay the high cost of wages and bear loss
due to small margins. Still, customer demand business to work full week. Others have contended
that high PR decreases business benefits and builds expenses to government, lessening the
interest for work and efficiency over the economy of Australia Australian economy. Be that as it
may, when we contrast Australian penalty rates and similar markets, for example, UK, Canada,
and even NZ – we are as of now driving the way.
However, there are many benefits for small business owners and they are cooperating
with the changes also reduction in penalty rates is well received by many. The benefits such as it
will allow the employer to hire more employees and provide jobs. More hospitality places will be
open on Sunday and operate the business as usual. It will provide 24*7 services to the customer
with more availability of employee and entertainment. The employer can make money and profit
by providing 24*7 service and increased staff levels (Employesure, 2017).

EMPLOYEMENT RELATIONSHIP – AUSTRALIA 5
Impact of reduced penalty rates on employees
PR has been a piece of the work advertises for just about hundred years, since the
Conciliation and Arbitration Commission of Australia decided in 1919 that extra installment was
mandatory for working unsociable hours. This choice stays well known a century later. As per
the most recent surveys, 82 percent of Australians bolster this remuneration for working outside
the standard working week (Smith, 2018).
These reductions in penalty rates are for those industries where the majority of the
employees are under 25 (Jackson, 2017). The country has an unusual position in the global
economy with the lowest minimum wage along with Chile, NZ, and Luxembourg (Das, 8). It is
sad for those who are worked in industries which are impacted by the FWC’s decision in
Australia and already being paid minimum youth wage compared to minimum wage across the
globe now will also get reduced penalty rates for Sunday and weekend working hours.
Unitarist, Pluralist and Marxist point of view have been depicted for comprehension and
dissecting employment relations. Every one of them gives an alternate understanding towards
working environment struggle, the job of associations and occupation guideline (Johnstone,
2018). They stated that great employment Relations are essential for the monetary advancement
of a nation and for setting up and keeping up obvious industrial popular government (Canals,
2016). FWC needs to review its decision and revise them as per the Australian working
conditions.
There is no proof to recommend that decreasing the least privileges like penalty rates will
prompt net business development. However for youngsters, working these unsociable hours
really affects their public activities, capacity to take part in family life, and in general wellbeing.

EMPLOYEMENT RELATIONSHIP – AUSTRALIA 6
While Sunday is surely not a religious day for most Australians, inquire about reliably finds that
the individuals who chip away at weekends are most influenced by the negative impacts of
working non-standard hours. As such, while it never again has religious essentialness, Sunday is
as yet a day to break.
A great part of the political controversies encompassing the decision to reduce PR is
because of the way that many affected workers "acquire sufficiently only to cover week by week
everyday costs," the FWC noted in its rundown choice. "Setting aside extra cash is troublesome
and sudden costs produce significant monetary misery. The prompt execution of the varieties to
Sunday punishment rates would definitely make some hardship the representatives influenced,
especially the individuals who chip away on Sundays." The FWC likewise noticed that those
most who influenced would be non-professional — easygoing and low maintenance laborers and
to a great extent youthful laborers. Directors' compensation rates would not be influenced. Thus,
many contradict the progressions since it is a verifiable inability to ensure the officially low paid.
Yet for some employee who works in hospitality and retail industry, there may be a
decrement in penalty rates such as large retailer Woolworths, Myers, Bunnings, Coles Target,
and Kmart or all those enterprises that involved into the agreement with the retail union
(Employesure, 2017).
Also, those labor whose employer does not choose to diminish pay rates on Sunday and
holiday and maintain their current pay rates above the least wages. There are many employers
who announced to retain current pay scale above the minimum desires in an act of goodwill to
their employees.

EMPLOYEMENT RELATIONSHIP – AUSTRALIA 7
This shows a positive side and maintains good relations with the workforce that the FWC
fixed out the base prerequisites for compensation rates, bosses can receive greater rates, yet
nothing, not exactly those specified as the bare necessity.
The loss and issues of these changes will have huge ramification for the retail industry,
where among 4, one of them is currently employed. Due to a reduction from 38.88 for an hour to
29.16 for Sunday and weekend employee in the retail sector will now have to work for
additional hours to cover up for the loss to maintain their current wages (Industry, Australian
Chamber of commerce and, 2017).
For those employees who work for 3hour on Sunday, they have to work for additional
hours to get the same pay what they used to get before. For those who work for 9 hours, a day
will have to complete an extra 3-hour to cover up the loss of reduced PR
Action has to be taken to reduce impacts of the reduced of penalty rates
When it comes to tackle the situation and establish better employment relations the
significant thing is that the changes will not be effects instantly. The FWC also states that they
will take actions and phased the changes in order to reduce impacts.
These changes are coming in effect by 1 July 2017 (FWC, 2017). As for weekend and
Sunday PR one of the option to reduce the impact is suggested by FWC to phase in the
decrement is through a sequence of annual adjustment in the month of July of each year to
overlap with any arises in minimum wages from wage review decision.
The Employer has to provide benefits to employee these benefits has to be differentiated
such as unemployment benefit and Health benefit. According to the Affordable Care Act requires

EMPLOYEMENT RELATIONSHIP – AUSTRALIA 8
offering health coverage to the employee. Some laws stated that employee who quit because of a
critical decrease in hours/pay may likewise be qualified for joblessness benefits (Noe, 2017).

EMPLOYEMENT RELATIONSHIP – AUSTRALIA 9
Conclusion
It is concluded that Youth in Australia already facing many challenges as their minimum
wage are low as compared to other countries and there are than 50% youth is under 25 age and
they have to work on Sunday to survive and manage their expenses. AS per the Australian
Bureau statistics data, the wages progress in the private sector is low and the cost of living is
high. Therefor Youth in Australia works on holidays and weekend as well but the reduction in
PR for Sunday and holidays bring their moral down and it will hit youngsters the hardest as
research discloses that 33% of Australians depend on ordinary Sunday shifts as a part of their
compensation, almost 40 percent of youngsters depend on PR to endure. The employers have to
take necessary steps to sustain and support their employees.
They can provide other benefits to its employees such as health benefits and several
others to support and help them to manage their expenses.
ACTU (Australian Council of a trade union) also questioned these changes and its
implementation of the laws. They stated that implications of the decision would be contradictory
with the substances of the Act which involve given that workplace legislation that is fair to
Australian employee and the modern award objectives which require that the commission has to
make sure that the minimum safety net is relevant and fair.
Bibliography

EMPLOYEMENT RELATIONSHIP – AUSTRALIA 10
Ahurst. (2016, 08 01). Employment and workforce issues in Australia. Retrieved 05 09, 2019, from
https://www.ashurst.com/en/news-and-insights/insights/employment-and-workforce-issues-in-
australia-august-2016/
Canals, C. L. (2016). Integrated Care to people with mental disorders and his employement. International
Journal of Integrated Care, 16(6).
Das, M. (8). International Regulation of Fantasy Sports: Comparative Legal Analysis of United States,
Austrailian, and Asian Laws. UNLV Gaming Law Journal,, 3.
Doyle, J. (2017). Year in review: Penalty rates: Winners and lossers in teh penalty rate debate. AJP. The
Australian Journal of Pharmacy, 98(1168), 16.
Employesure. (2017, 03 06). How Will The Penalty Rate Changes Impact Your Business. Retrieved 05 09,
2019, from https://employsure.com.au/blog/will-penalty-rate-changes-impact-business/
FWC. (2017). 4 yearly review of modern awards – Penalty Rates – Transitional Arrangements. Retrieved
05 09, 2019, from
https://www.fwc.gov.au/documents/sites/awardsmodernfouryr/2017fwcfb3001.pdf
FWC. (2018). Fair Work Commission. Retrieved 05 09, 2019, from https://www.fwc.gov.au/
Industry, Australian Chamber of commerce and. (2017, 01 04). Senate education and employement
references commiittee inquiry-penalty Rates. Retrieved from Austrailian Chamber.com:
https://www.australianchamber.com.au/wp-content/uploads/2018/01/04-08-17-Submission-
References-Committee-Inquiry-on-Penalty-Rates.pdf
Jackson, S. (2017, 02 23). Cutting Sunday penalty rates will hurt young people the most. Retrieved from
The conversation: https://theconversation.com/cutting-sunday-penalty-rates-will-hurt-young-
people-the-most-73511
Johnstone, S. &. (2018). The Potential of Labour− Management Partnership A Longitudinal Case Analysis.
British Journal of Management, 29(3), 554-570.
Noe, R. A. (2017). Human resource management: Gaining a competitive advantage. New York. McGraw-
Hill Education.
Smith, M.-L. (2018, 02 26). Australia: Key issues affecting Australian workplaces in 2018. Retrieved 05 09,
2019, from http://www.mondaq.com/australia/x/676772/employee+rights+labour+relations/
Key+issues+affecting+Australian+workplaces+in+2018