Home eNewsletter Retailers call for phased reduction of Sunday penalty rates

Retailers call for phased reduction of Sunday penalty rates

The Australian Retailers Association has proposed a two-stage transition for Sunday penalty-rate reductions.

ARA has issued a submission to the Fair Work Commission that recommends permanent and casual Sunday penalty rates be reduced to 175 per cent from July 1, 2017 and then to 150 per cent from July 1, 2018.

ARA Executive Director Russell Zimmerman says a phased approach will allow retailers to employ more staff and maintain industry growth.

“When this phased approach is implemented, it will allow retailers to start trading longer, employ more staff, increase staff hours and improve turnover,” he said.

The ARA says take-home pay orders are impractical and not legally viable.

‘Take-home pay’ is the pay an employee or outworker actually receives after tax and certain deductions, such as salary sacrifice arrangements, and includes wages, allowances, incentive-based payments and overtime.

The ARA claims that a phased approach to penalty-rate reduction will have no negative impact on employees, or possibly a marginal effect.

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