The Fair Work Commission decision to phase in changes to penalty rates – Key dates

In February 2017 the Fair Work Commission (FWC) made a decision to reduce existing penalty rates in the Hospitality, Retail, Fast Food and Pharmacy Awards, as the existing rates did not achieve the modern award objective of providing a fair and relevant minimum safety net.

In this decision the FWC has determined to phase in the reductions to Sunday penalty rates over four years.

The first reduction will occur on 1 July 2017, with further decreases in the relevant penalty rates on 1 July each year until 2020.

Reductions to Public Holiday rates will apply in full from 1 July 2017.

Penalty rate cuts to be phased in

The transitional arrangements vary depending on the Modern Award, but will generally see a reduction of 5% effective 1 July 2017, with further reductions of 10% in following years.