Employment Relationship - Australia

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.