HRMT20027: Critical Report on Fair Work Commission Penalty Rates

This report critically analyzes the employment relations issues stemming from the Full Bench of the Fair Work Commission's February 2017 decision regarding the 4-yearly review of modern awards, specifically focusing on penalty rates. The report delves into the impact of these decisions on various sectors, including hospitality, retail, and fast food, examining changes to Sunday and public holiday penalty rates for full-time, part-time, and casual employees. It discusses the reduction of Sunday penalty rates, particularly for level 1 employees in the fast food industry, and the proposed amendments to these rates across different awards. The report also explores the implications of the transitional arrangements and the ongoing debates surrounding the fairness and effectiveness of these penalty rate adjustments, considering the perspectives of both employers and employees and referencing the relevant modern awards and decisions. The report further examines the public holiday penalty rates and the proposed changes in different sectors. Finally, it presents a critical review of the penalty rates decisions and the issues in duty associated with the topic.

Running head: CRITICAL REPORT TO UNIT COORDINATOR
CRITICAL REPORT TO UNIT COORDINATOR
Name of the Student
Name of the University
Author note

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CRITICAL REPORT TO UNIT COORDINATOR
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Public Holiday Penalty Rates..........................................................................................................5
Proposals of penalty rates of public holiday in the sector of Hospitality and Retail Awards for
full and part time as well as for Casuals respectively..................................................................5
Proposals for the amendments of the Sunday penalty rates in the Hospitality and Retail
Awards: The rates that are proposed both for the full time employees and the part time
employees as well as the casuals employees under the Sunday penalty rates of the Hospitality
and Retail awards are given below,.............................................................................................6
References........................................................................................................................................9

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CRITICAL REPORT TO UNIT COORDINATOR
Introduction
The following report is to the Unit Coordinator critically directed towards the issues and
challenges of the Employment relations which has come up to the context of decision of the Full
Bench of the Fair Work Commission on 23rd February, 2017 with respect to the 4 yearly review
of modern awards – Penalty Rates (Douglas & Watt, 2018). Those remaining penalties on
Sunday and the fixed rates at certain places like, the hospitality sectors, fast foods chain, retail
outlets and Pharmaceuticals awards do not really gain the modernity awards objectivity because
of their habit of not providing genuine and important less secured nets. The decision for the
Penalty Rates was mend to make it effective to mitigate penalty rates of the Sunday that ranges
to 150 percent for whole time and regular employee of the Hospitality, the retail and the
pharmacy awards (Wyborn, & Miller, 2018). The range varies as such to 175 percent of the
normal employee who are casual in the sectors of Retail and the awards for Pharmacy. This
effective decision reduces the Sunday rates for penalty especially in the notable Fast Food Award
which was dedicated only for the employees of level 1 which started off with the full time and
casual employees 125 and 150 percent respectively (Buchanan & Oliver, 2016). Besides this, the
effective decision of Penalty Rates has resulted in the reduction of public holidays in the
discussed awards and also including the Awards for restaurant. The change and shift of the
Transitional Arrangements decision will correlates with application of Penalty Rates Decision
(Fair Work Commission, 2017).
Discussion
To critically present the report, regarding the decisions of the Penalty rates, it has been
observed that the major portion in the working culture of the employees is captivated with the

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change in the modern awards that are those with subjects of the previous with extremely less
paid (Fair Work Commission, 2017). Also it has been analysed that the propositions of variations
in awards is relatively effecting to those employees as these changes are likely to make reduction
in their salary structure and earnings resulting in lowering down their financial capacity to meet
their needs and demands and hence lowers down their standards of living (Buchanan, & Oliver,
2016). To critically report about the employment relations, it is important to discuss about the
various modern awards in detail that include,
 The Penalty Rates Decision issued diligently on the 23rd February, 2017 that deals with
the list of the penalty rates regarding the weekend and the public holidays and other
certain matters related to innumerable awards that are modern in the sectors of retail an
hospitality which are listed below:
Award for Restaurant industry or the Restaurant Award 2010.
Award for the Fast Food Industry or the Fast Food Award 2010.
Award for the General Hospitality or the Hospitality Award 2010.
Award for the General Retail Industry or the retail Award 2010.
Award for the Registered and Licensed Clubs or the Clubs award 2010
Award for the Pharmacy Industry or the Pharmacy Award 2010.
 Especially, the decision on these penalty rates determine the remaining penalty rates of
Sunday in the above sectors as they could not achieve the awards of modernity in
objective, as these sectors does not offer normal and significant minimal safety nets
(Barry, 2016).
 Precisely, the decisions on the penalty rates are aimed at effectively reducing the penalty
rates of Sunday for the whole hours and partial hour employee and also regarding the

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other working employee who are from casual category in various sectors of the
Hospitality, fast food, pharmacy and Retail (Kaine, 2016).
 In the Hospitality and Retail awards, Decisions on the penalty rates have changed
phenomena for the ongoing rates of Sunday and public holidays which was at first 250
percent for the full and part time employees that reduced up to 225 percent. Whereas for
the casuals, the public holiday rates did not changed or went down. They remain as it is
set on 250 percent (Dean & Fraser, 2018).
 In case of the Fast food award, it is in association with the references of the significant
employee and refrained effects of Sunday schedules of working so it has been decided
upon to mitigate the penalty rates regarding Sundays only for thee level first employees
(Harpur & Douglas, 2017). The proposal for the change of Sunday Penalty rates for the
other two level that is level 2 and 3 who are referred as the ‘career’ employee of the huge
connective chains while the level 1 employees or the casual and the partial timing
employees who are usually considered as the ‘non career’ employee. That is why the
Sunday penalty rates for both the level of employees are different and changed as per the
modern awards, for one the rates have been has reduced and for the other it remains all
the same (Gahan, Pekarek & Nicholson, 2018).
 As per the restaurant and fast food awards the amendments of the Sunday rates of
penalties it vary and depends according to the working shifts in the restaurant industry.
Generally in the restaurants and hotels people work for both day and night shifts or even
at times they need to work for late night shifts (Gahan, Pekarek & Nicholson, 2018).
Therefore the penalty charges has been divided depending on the span of hours they need
to spend in the workshop and the feasibility level is around 15 percent. 10 percent is

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provided to those who works in the evening shift loading applies within 10 pm at night
and further to the midnight based on the checking of any further error if present (Rawling
& Schofield-Georgeson, 2018).
 Recently in the decisions of 17th March 2017, the decisions on the penalty rates for the
reduction of Sundays and public holidays in certain retail and hospitality industries to
promote the modern awards, it dealt with specially the late night penalties specifically for
the fast food awards or in the hotel industries that would be commencing on 1st July, 2017
(Collins, 2017). The reason for this decision is the general agreement of the deposit
forwarded by different shops, distributors and other employee associations to explain
thoroughly the objective of the establishment of simple methods that are easily decipher
modern awards can be the best serving of the settlement of those general persistent
transition and arrangements which are arising out of the revolutionary Penalty rates
Decision (Gale, 2018).
To critically review this, these penalty rates decisions should be done and carried forward in a
serial wise manner in the annual budget adjustments on 1st July every year to check with all the
possible increments in the modernity awards arising from the wage governing body Annual
Wage review decisions for the minimum wages (McIvor & Markey, 2017).
Public Holiday Penalty Rates
Proposals of penalty rates of public holiday in the sector of Hospitality and Retail
Awards for full and part time as well as for Casuals respectively (Wright, 2016).
Hospitality Award (cl. 32) 225 and 250
Restaurant Award (cl. 34) 225 and 250
Retail Award (cl. 29) 225 and 250

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Fast Food Award (cl. 30) 225 and 250
Pharmacy Award (cl. 31) 225 and 250
Proposals for the amendments of the Sunday penalty rates in the Hospitality and
Retail Awards: The rates that are proposed both for the full time employees and the part time
employees as well as the casuals employees under the Sunday penalty rates of the Hospitality
and Retail awards are given below,
Hospitality Award
Full-time and part-time employees and no changes for casual employees
Current
175 per cent
175 per cent
Proposed
150 per cent
175 per cent
Fast Food Award
(Employees of level 1 only)
Full-time and part-time employees and Casual employees:
Current
150 per cent
175 per cent
Proposed
125 per cent
150 per cent

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Retail Award
full-time and part-time employees and Casual employees:
Current
200 per cent
200 per cent
Proposed
150 per cent
175 per cent
Pharmacy Award
(from 7.00 am to 9.00 pm working employees only)
Full-time and part-time employees and Casual employees
Current
200 percent
225 percent
Proposed
150 percent
175 percent
Penalty Rates Decisions Reconsidered
In the deposit of 2017, 24th March, the rights are reserved and conserved by the United
Voice with the respect of the efficiency of research that shapes the penalty rates and satisfied
with the alternate submissions with the relation to the dynamic arrangement of the Sunday
penalised rate mitigation in the awards of the Hospitality sectors should however not be implied
(Fair Work Commission, 2017). The cause for those above penalised rates is endings in the

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decision and supports with the substantial portion of the workers affected with the low scale
wages. When critically reviewed it is seen, the penalty rates decision never offers the exact
importance to those directed effects to employees of the cutting rates of penalties and also
reduction in their Basic take home salary which is very unfair. In association with this, there can
many variations of the awards in the modern schemes that results in the mitigation of the basic
salary is impertinent with the orderly needs and purposes (Markey & McIvor, 2018). There were
no such alternatives arrangement that could effect and compare the effect of rates that are
penalised rates reduction or the prevented important demerits for the employee in the
consequences of the Penalty rates Decisions.
The Issues in Duty
As discussed above, after the several submissions during the time of the effective
application of the other variations of modern awards in the Sunday penalty rates have been raised
in the written proceedings (Buchanan & Oliver, 2016). This issue was not put forth in the verbal
argument. Also, in the Penalty rates, the variety of modern awards need to be strictly justifiable
with their subjected advantages and rest assured the expected outcomes as solutions from these
arguments will depend on the circumstances. However, this analysis has not been intended to
support the normal laws and orders regarding the notion of the duty or the load of proofs. Now,
the Commission has a task to review and determine that if there is any specific modern awards
have been achieved for certain particular objectives (Allen & Landau, 2018). The question
behind all these is that is there any relative amount of the disutility of works on Sunday to which
when observed in detail in Penalty Rates decision, this issue was the most relevant prescribed
that the Sunday Penalty Rate provides better and minimum security levels as far as safety net is

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concerned. This was subjected and related to the most relied and tested the basic four modern
awards where it was brooded upon the solution of mitigation of Sunday penalty rates.
Conclusion
Therefore while concluding this report, in the Penalty Rates Decision it has been
critically reviewed that there are the prevalent rates that tends to raise few challenges regarding
the levels of Sunday penalized rates and also about the public holiday penalty rates those are
applicable to all the casual employees. As per the Commission, it is considered to be appropriate
for the above rates to analyze them. It is also notable to mark that there might be certain
important predicaments to thee commission which is acting through the authorized powers to
search for the authentic evidences. The theory delves deeper in to many facts considering many
sectors of industries in Australia when the Full Bench has laid its foundation of Fair work
Commission. The above discussed Penalty Rates has been analyzed deeply which was expressed
and stated by Transitional Review Full Bench to insert these exact applied rates into the sectors
like the Hospitality and Retail Awards. It is also inferred from the report that, it has the
formation of loaded rates of the awards provided that the employer and employee can associate
with the transitional rearrangements of the remunerations of minimal wages per weak, penalized
rate and reassured payments for overtime those are discussed clearly in the Award. Hence, it is
thoroughly observed that, the latent complexions indulged into the tasks for the development of
the appropriate schedules for the extra rates.
References
Allen, D., & Landau, I. (2018). Major court and tribunal decisions in Australia in 2017. Journal
of Industrial Relations, 60(3), 397-413.

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Barry, M. (2016). Employer and employer association matters in Australia in 2015. Journal of
Industrial Relations, 58(3), 340-355.
Buchanan, J., & Oliver, D. (2016). ‘Fair Work’and the Modernization of Australian Labour
Standards: A Case of Institutional Plasticity Entrenching Deepening Wage
Inequality. British Journal of Industrial Relations, 54(4), 790-814.
Collins, E. C. (Ed.). (2017). Employment Law Review. Law Business Research Ltd..
Dean, C., & Fraser, L. (2018). Employment law: The new normal: Flexibility in the
workplace. Governance Directions, 70(11), 733.
Douglas, S., & Watt, G. (2018). Implications of the Fair Work Commission's modern award
review for casuals. The Journal of New Business Ideas & Trends, 16(2), 30-40.
Fair Work Commission. (2017). Decision: 4 Yearly Review of Modern Awards–Penalty Rates
(AM2014/305).
Gahan, P., Pekarek, A., & Nicholson, D. (2018). Unions and collective bargaining in Australia in
2017. Journal of Industrial Relations, 60(3), 337-357.
Gale, L. (2018). Award case: Fwc endorses long working hours and unpaid work. Advocate:
Journal of the National Tertiary Education Union, 25(1), 36.
Harpur, P., & Douglas, H. A. (2017). Submission To The Fair Work Commission 4 Yearly
Review Of Modern Awards Family And Domestic Violence Leave (Am2015/1).
Kaine, S. (2016). Women, work and industrial relations in Australia in 2015. Journal of
Industrial Relations, 58(3), 324-339.
Markey, R., & McIvor, J. (2018). Regulating casual employment in Australia. Journal of
Industrial Relations, 60(5), 593-618.

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McIvor, J., & Markey, R. (2017). Scrutinising the argument for reducing penalty rates. Journal
of Industrial Relations, 59(5), 652-669.
Rawling, M., & Schofield-Georgeson, E. (2018). Industrial legislation in Australia in
2017. Journal of Industrial Relations, 60(3), 378-396.
Wright, C. F. (2016). Australian industrial relations in 2015. Journal of Industrial
Relations, 58(3), 297-307.
Wyborn, J., & Miller, B. (2018). The new safety net: Domestic and family violence leave. Ethos:
Official Publication of the Law Society of the Australian Capital Territory, (248), 30.