This report critically examines the employment relations issues stemming from the Full Bench of the Fair Work Commission's February 2017 decision concerning the four-yearly review of modern awards, specifically focusing on penalty rates. It delves into the arguments both for and against the reduction of penalty rates, analyzing the decision's impact on Australian society and the lives of workers. The report explores the implications of the decision, including potential effects on job creation, wages, and the political landscape, considering the perspectives of employers, unions, and the government. It also investigates the effects of the changes on different sectors, such as retail, fast food, and hospitality, and how they may impact various groups, including young workers, students, and families. The analysis encompasses the political debate surrounding the decision, including the legislative agenda and its potential influence on the federal election. Furthermore, the report examines the Fair Work Commission's role, functions, and the context of the decision within the broader framework of Australian industrial relations. Finally, the report provides a comprehensive overview of the key issues and consequences arising from the Fair Work Commission's determination on penalty rates.